*saeyI0M pToyasnoy eieatad sopntoxg /T
O°OT c°6 8°8 Tl 8°? 9° O°OTT 8°80T 0°00T wt eos ss ss es 8 saoTAreg
vara 7°8 8°IT €°Im WT sy 7° ZOT L°€0T 0°O00T sf oe soe eos ss a3e3se [Ror
pue ‘ooueinsuyT ‘eoueuTy
oy ors s°8 ST VT o°~ S*90T O°€OT 0°O00T Sot tose ess apes [Tey
6°8 6°L S°s Vand 8's S°T 6°80T €°90T 0°00T sf tof sos * ape} eTeseToyM
B°s 8° S°8 8°T OT 6°T 8°SOT 6°€0T 0°00T * * oped} [Te}ea pue eTeseToyM
69 z's 6°0T Vt ovs €°? 6°90T L°SOT 0°O0T sess ss ss es saTaTTyan
- OTTqnd pue uoT}eIIOdsueI],
ere S°8 6°8 eT ST ara €°LOr 6°SOT 0°O0T wots ss ee ee uorjona}sUo0D
Ts ors s°6 Tl or? 0°? T°LOT 6°SOT 0°00T fototoso soe se BupanqoeynueWUON
£°9 Lek ork 6° Te cara €°901 €°SOT 0°O0T sf tt se ss ss set qeanpuon
ara 98 9°6 Ort LT a4 9° LOT €°901 0°00T Soot sos es se es setqeang
ore e's 0°6 orl 8°T (ana 0°LOT 6°SOT 0°00T sorts eos se es Bupanjoejnuey
uoTsTaTp Aaysnpuy Aq *szayxI0M
6rL ork 6°8 Tr 6°€ 8 6°L0T L£°90T 0*00T "tt sos ss ss szexIOM eoTAIEg
1's 8°9 0°6 O'T 8° S°t T°SOT T*90T 0°00T ct tot te 8 szezoqeyT wiezuoy
Ty 9°9 7°8 6° s° ere T°¥0T Z°E€Or 0°00T *soaTieiedo quaudtnbe jrodsuery
9°9 Bre £°6 TT rans €£°% 9°90T 7°SOT 0°O0T * *qr0dsueaz ydeoxe ‘seatieredg
ork 9°83 76 e°T 8°T (ana 9° LOT Z*90T 0°O0T * * * saayx10M perpuTy pue Ijeip
9°9 6rL °6 VT wT ara 9°90T 7°SOT 0°O0T stot fs 8s srayxAION APT TOO-aNTg
€°8 S°8 8°e ran Ltt wT €°80T O°LOT O*O0T vf et ss 8 sreyTom TBOTIeTD
8°T Zo Z°OT yn €° 6°E 8° TOT Z° OT 0°O0T ws ss sos sss szaytom seTeg
ran rl L°8 e°T 6°C vant Lol 8'SOT 0°00T * * szoleijzsyTuyjupe pure sreSeuey
7°6 O°oT T°OT el var 8° 7°60T 0°80T 0°00T sees ss ss 8 + sreyroM
yeoTuyIe} pue TeUuoTSssazorg
ek €°8 7°6 ovr ana 6°T €°20T 7°901 0°O0T se fos ss szeyTOm reTTOo-~eIT YM
dnoaZ Teuotzednos0 fq ‘srayIOM
TL 1's €°6 I'l o'% 0% T°LOT 6°SOT- 0°00T tots + +/7 sxeyz0m wiejuou eqeatag
786T 7861 T86T 786T 786T 186T 7861 c86T T86T :
aune yorey aunr aunc yosrey aun aunc ypsey aunp
pepue syiuou zy papue syzuom ¢ seTieg

Aoy Sasueyd jUsoIEg

(OOT=1861 eunf) Sexepuy

dnoa3 aysnpuy pue uotjednov0 hq /T ‘siayz0K waezuoU szeaTAd ‘seTae{es pue sade

JO} Xepuy 3s0og JuewAoTdug

(pezsnfpe ATTeuoseas JON)
*€ eTqPL

SdTaVIVS CNV SHOVM


EXPLANATORY NOTE

The Employment Cost Index (ECI) is a quarterly measure of the change in the price of labor,
free from the influence of employment shifts among occupations and industries. The ECI wage
and salary series is limited to changes in wage and salary rates, defined as straight-time aver—
age hourly earnings. Straight-time earnings are total earnings before payroll deductions, ex~
cluding premium pay for overtime, work on weekends and holidays, and shift differentials. Pro-
duction bonuses, incentive earnings, commission payments, and cost-of~living adjustments are in-
cluded in straight-time earnings, whereas nonproduction bonuses (such’as Christmas or year-end
bonuses) are excluded. Also excluded are such items as payments~in-kind, free room and board,
and tips.

The compensation series includes employer costs for employee benefits as well as wages and
salaries. Benefits covered by the ECI include:

Hours related benefits - Premium pay for overtime and work on
weekends and holidays, paid holidays, paid vacations, paid
sick leave, and other paid leave;

Supplemental pay - Shift differentials, nonproduction bonuses,
severance pay, and supplemental unemployment plans;

Insurance benefits - Life, health, and sickness and accident
“Insurance; .

Retirement and savings benefits - Pension and other retirement
plans and savings and thrift plans;

Legally required benefits - Social security, railroad retirement
and supplemental retirement, railroad unemployment insurance,
Federal and State unemployment insurance, workers’ compensation,
and other legally required benefits such as State temporary
disability insurance; and

Other benefits - Merchandise discounts ,in department stores.

The ECI ‘collects data for both the private and public sectors, which are published
separately and also combined as the total civilian nonfarm economy. The private sector includes

the total private nonfarm economy, excluding private households. The public sector covers State
and local governments, but excludes the Federal government.

Each quarter, straight-time average hourly earnings and benefit cost data (cents—per-hour-
worked) are collected from a probability sample of about 10,000 occupations within 2,000 sample

establishments in the private sector and about 3,700 occupations within 750 sample establishments
in State and local governments.

Occupations were classified according to definitions used in the 1970 Census. Within an
establishment, specific job categories are selected to represent broader occupational definitions.
The sample establishments were classified in industry categories based on the 1972 Standard
Industrial Classification (SIC), as defined by the U.S. Office of Management and Budget. Within
the private sector sample, establishments are designated by a 2-digit SIC, while in State and
jocal governments, industrial categories vary from a more specific 3-digit SIC such as elementary
and secondary schools to a broader major industry division such as public administration. Each
establishment is also classified by ownership--State, local, or private.

Fixed employment weights from the 1970 Census are used each quarter to calculate the most
aggregate indexes—civilian nonfarm, private nonfarm, and State and local government. These
fixed weights are also used to derive all of the industry and occupation series indexes. For
the series based on bargaining status, region, or area size, however, employment data are not
available from the Census. The 1970 employment weights are reallocated within these series
each quarter based on the current sample. The indexes for these series, consequently, are not
strictly comparable to those for the aggregate, industry, and occupation series. A fuller
explanation of the calculation of index numbers appears in an article, "Estimation procedures
for the Employment Cost Index," in-the May 1982 issue of the Monthly Labor Review.


soTqeTTear jou ele

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. *szay10mM pToyasnoy eyeaTad sopnyToxyg fe
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*s7ayIOM JuaUUTEACS [eIepeq puke PToYyesnoy eqwATid sepntoxg aa
9°8 - - 8° 6'T - °80T $*Lot 0°00T tones e+ +/% uopaesasturmpe oTtang
Ste - - 9° ha - $*60T 8°80T 0°00T ++ fq seoqzares s0yr0 pue steiTdsoy
8°8 - - 1 “ - 8°80T L°80T 0*00T + + ¢ + kaepuoves pur ArequoweTa
s°8 - - a 9° - s*80T €°s0t 0°00T sore eee se ss ee & 8 stools
88 - - o° Lt - 8°80T 9°g0T 0°00T eee ee eee ee ee saatarag
. uoTsTAtp Aaysnput Aq ‘s1ayx10M
6°L - - y oT - 6°L0T s*Lot 0°00T softs ss es 6 szaytom reTTOo~enT gE
6°8 - - ” 6° - 6°80T s°80L 0°00t soso ss sons . sexton TeTTOO-33 TUM
dnoa8 Teuotzednov0 fq ‘sz9yx10M
L°8 - - Ut - L°80T Z°80T 0°00T + + ©  szayz0m quouuzeAcs [edOT pue 31eIS
TL 0'8 $6 Ut 0% 0% TOT “6°S0T 0°00T see eee ee es SupanqoeznueuUON
ore z°8 0°6 O'T ct cana o°ZoT 6°SOT 0°00T pote ee ee se ee + Supanjoegnuey
uofTsTaTp Sizsnpuy fq ‘sreyx10M
orl ork 6°8 I'l 6°€ 8° 6° LOT £°90T 0°00 sosos ee ee ee 8 8 sieyrom eoTATeES
9°9 6rL c°6 TT at var 9°90T 9°SOT 0°00T sss ee ee 8 8 szayIOM IBTTOO~eNT ET
ere €°8 7°6 OvT rand 6°T €°L0T c°90T 0°00T sore es ss 8 sreyIOM TBTTOOOI TUM
dnoiZ. [euotzedno.0 fq ‘s1eyx10M
TL 18 €°6 Tr o°% 0°% T°Lot 6°SOT 0°00T tones ee + 9/7 szayZ0m WIRzJUOU eqeATIE
7°8 - - 8° oT - 7°80T s° Lot o*00T soe es 6 9/% uoppessTUTUpE OTT qNa
S°6 - - 3° 6'l - $*60T 9°g0t. 0°00T ee ee ee eee ee sontarag
stk - - 6° 6°T - s* Lot s°90T 0°00T sorte tos sos es BupanjoeynueWUON
ork - - o’T ert - o°zot 6°SOT 0°O0T see ee eee eee 6 BuTinjoeznUEH
uoysTatTp Azisnpuy fq ‘s279410M
6k - - Ort Te - 6°LOT g°90T 0°00T hott ee ee e+ + saaqzom e0Tareg
£9 - - I'l ot - £°90T s*SOT 0°00T sos ee ee + + sreytom eT TOO~enT gE
a - - 8° 6'r - 9°LOT L°90t | . 0°00T sore ee ees szoyzom JeTTOO~|ITUM
dnoa3 Teuop}ednsv0 Kq ‘srsyI0M
ere - - 6°0 et - €°L0t _€°90T 0°00t torts es ss /T szeyzom waezuou weTTTATD
786 7861 “T86T 7861 786T 1861 7861 7861 186T "
aune yoseK aunc aunc yp3zeW aun eunc yosey aune.
pepus syjuoM ZT papue syjuow ¢ sotieg

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(OOT=186T eunr) sexepur

(persnfpe AT[euocsees JON)

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SaIYVTVS CNV SHOVM


‘softies Aaysnpuy pue ‘uoTzednov0 ‘eqe8er38e ey I10z

*ajou Azojzeue{dxs vag

9804307 eT qereduos ATIOTAIS JOU eIe SeTIeS eseYy JO} sexepUy ey, :ALON

seTqeTTeae jou eleqg -
*szayI0K pToyasnoy azeaTad sepntoxg /T

ord €°8 L°Or 8° 6s O°? O°LoT Z°901 0°O0T sot ot se ss ss ss seere TayI0
aan Lek €°OT wT S°T 6°T c° Lot £°SOT 0°O0T sosos sos es spare unzTfodos1oy
ezts Beare Aq *siayioM
"9 - - I'l OT - 7°901 z°sot 0°00T stots ess BupanjoeznuewuoN
9°9 - - 6° a4 - 9°90T L£°SOT 0°00T sotto se se es Bupanjoeznuey
s*9 o£ 8°6 Tt LT Ly S*90T €°SOT 0°O0T coe sh se ss ss es uoTuNnUON
L£°8 - - 8° L°T - L°80T 8°90I 0°O0T coro tos ss SupanjoejnueuUON
0°8 7 - OT OT - o°s0oT €°90T 0°O0T soho ts es es Supanjoejnuey
78 1°6 S°IT 8°T OT ard 7°80T $°90T 0°O00T Sots ss ee eee ee ss uoTun
snjeqys Sututesieq Kq “sTeyIOM
c861 ¢86T 1861 7861 786 T86T, C861 7861 T86T
eung yprey aun aune ypaey aun aune yrey une
pepus syyuoW ZT pepue syzuow ¢ : seTaeg
Joy sasueyo Juedieg (COOT=1861 eunr) SexepuT

(peisnfpe ATTeuosees JoN)

azys were pue snjeqs SuftuTesieq <q /T ‘saey%10m wieyuou aqeatad
“(sqqTyoueq sekoTdue 10z sjsod rahojTdwe pue ‘seTiey{es ‘seZem) uotTesuadmod Oz xapuy ysoQ juewAOTdUg *y- aT qey,

NOILVSNAdNOD


-9-

Data are collected for the pay period including the 12th day of the survey months of
March, June, September, and December. ECI statistics are neither annualized nor adjusted for
seasonal influences. For example, the 1.1 percent change in wage and salary rates for
“private nonfarm workers" in the second quarter of 1982 (table 3) is the actual percent change
in straight-time average hourly earnings from the pay period including the 12th day of
March 1982 to the comparable pay period in June 1982.

More detailed information on the ECI is available in several articles and publications.
These include a chapter in the BLS Handbook of Methods (Bulletin 1910), "The Employment Cost
Index." Two: articles also appeared in the Monthly Labor Review: "Employment Cost Index: a
measure of change in the 'price of labor'," July 1975; and "How benefits will be incorporated
into the Employment Cost Index," January 1978. Reprints of these articles plus several other
descriptive pieces are available upon request.


United States y
Department Y
of Labor

Bureau of Labor Statistics Washington, D.C. 20212

Technical, historical information: USDL: 82-288
(202) 523-1165

Media contact: (202) 523-1913 FOR RELEASE: 2:00 P.M. E.D.T.
Thursday, August 19, 1982

EMPLOYMENT COST INDEX — JUNE 1982

The Employment Cost Index (ECI), measuring changes in employer compensation costs, increased
1.1 percent in the 3 months ended in June 1982, the U.S. Department of Labor's Bureau of Labor
Statistics reported today. Wages and salaries alone rose 0.9 percent. The index stood at 107.5
for compensation costs (wages, salaries, and employer costs for employee benefits) based on

June 1981=100. The ECI does not cover farm, private household, and Federal government workers
and is not seasonally adjusted.

The deceleration in rates of increase for both compensation costs and for wages and salaries
alone that began in 1981 continued to be widespread among occupational and industrial groups mea—
sured by the ECI. Compensation costs for ali private nonfarm workers slowed to a 1.3 percent rise
in the 3:months ended in June 1982, down from 1.9 percent a year earlier. The corresponding wage
and salary increase, 1.1 percent, was down from 2.0 percent a year earlier.

Workers in occupations and industries that typically receive the bulk of their wage adjust-
ments in the second quarter showed relatively small gains in the March~June 1982 period. Transport
equipment operatives, for example, posted a 0.9 percent wage increase in the second quarter of
1982. The advance was dampened by the recent trucking industry bargaining settlements that pro-
vided no specified wage increases and diverted part of the cost-of-living adjustment to maintain
existing employee benefits. Over the past 5 years, second-quarter wage increases for transport
equipment operatives ranged between 3 and 5 percent.

Wages for workers in the construction industry rose 1.3 percent in the March-June 1982 period--
an unusually low increase for an industry with a heavy bargaining schedule in the spring and summer
months. Second-quarter wage increases in construction ranged between 2 and 3 percent over the

* past 5 years.

June_1981-June 1982

A substantial deceleration in rates of increase in compensation costs and wages and salaries
for the year ended in June 1982 compared with the preceding year also occurred. A particularly
dramatic slowdown occurred in compensation cost.increases for blue-collar workers in private in-
dustry. These costs slowed to a 7.0 percent increase in the year ended in June 1982, from a
10.5 percent rise in the year ended in June 1981. Wage increases alone for these workers slowed
to 6.6 percent, dow from 9.2 percent a year earlier.

Among white-collar workers, compensation costs rose 7.2 percent for the 12 months ended in
June 1982 compared with 10.2 percent during the year ended in June 1981; their wages and salaries
increased 7.3 percent, down from 9.4 percent in June 1981. Rates of change within the white-collar
group varied substantially, however. Sales workers' wages, which include volatile commission
earnings, rose only slightly, 1.8 percent, for the June 1981-82 period in contrast to 10.2 percent
for June 1980-81. Wage increases for clerical workers, on the other hand, 8.3 percent for the
12 months ended in June 1982, were only slightly below the June 1981 advance of 8.8 percent.

Compensation costs for union workers rose 8.4 percent in the June 1981-82 period, contrasted
to 11.5 percent a year earlier; their wage and salary increases dropped to 8.1 percent from
10.1 percent.


sajou kzojeueTdxe oeg
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. *saayZ0M pToyesnoy ezeaysd sepntoxg /T

8°9 8rL c°6 8° 8c Z 8°90T 0°90T 0°00T cot toss es ss seere 194I0
Tes o°8 7°6 Vr 8° T T°LoT 6°SOT 0°O0T sot fos ss seare ueqtTtodosiey
BztTs ware Aq “STOyION
9°8 raaehe L°OT 9° Le or4 9°801 6°L0T 0°00T ee
19 L°9 7°6 €°T vans 6°T T°90T L°401 0°00T soso sss ss Terqued YITON
wl 6rd 76 OT 8°e or~ 7° LOT £°SOT 0°00 sore sss ee es es yyNog
L°9 6°L 1°8 9° O°T L°T L°901 T°90T 0°O0T sot es se es ss FsBeuIION
uoTsei Aq ‘srexIOM
99 ek 26 6° rand Lt 9901 "sot 0°00T forts ss Supangqoe;nuewuoy
“9 z'8 9°8 8 s'z rar L°90T 6°SOT 0°00T sores sore Supanzoegnuey
$9 sk 0°6 6° €°% chat $*901 9°SOT 0°00T sorte bee 2 es + uotunuoy
88 Z°OT 9°01 Lt Lt ore 8°80T 0*LOT 0°00T sors 4 90+ Butangoeznueuoy
€tZ 9°8 9°6 eT ion €°% €°LOT 6°SOT 0°00T totes sss Sutanqoeznueg
1°8 €°6 T‘OT S°T W°T ot T'801 $°90T 0*O0T sort sss se ee se uoFun
snjzejs Supuresieq Aq “srexI0M
c86T 7861 T86T c86T e861 T86T c86t c86t T86T .
aunr yorey eunr aun yore eunr aune yorey eunr
Pepus syjuom zy] pepue syzuoW ¢ soTIeg
OF sasueyo WSdi9g (QOT=186T euNr) SexepuT

(parent pe A{jeucsess ION)

azqs ware pue ‘uoTea
‘snjeqs SuyuTeSaeq hq /T ‘saay10M waeyzuOU azeATId ‘saTzeTes pue seSem JOJZ xepuy 309 JueWAoTdWY *¢ aTqeL

SaIYVIVS CNV SHOVM


The slowdown was also evident for nonunion workers. Compensation costs increased 6.5 percent
for the 12 months ended in June 1982, down from 9.8 percent in June 1980-81; wage increases were
6.5 percent and 9.0 percent, respectively. .

Compensation costs for State and local government employees, introduced in the ECI in
June 1981, increased 9.3 percent over the year; their wages advanced 8.7 percent.


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aun yoaey . eune eune yore aunr aung yorey sunr

Pepys syquom ZT]

papus syyuow ¢

oF sesueyd JUsdI9g

(COOT=1861 euNr) SexepuT

seqTieg

(peisnf pe ATTeuosees ON)

dnoa8 Aaysnpuz pue uopzednd20 fq /T ‘s1ey10M WIezUOU UPTTTATO
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NOILVSNAdWOD