Table 3, Employment Cost Index toc wages and salaries. private nonfarm workers, 1/ by occupation and
industry group

(Not seasonally adjusted)

~ Indexes (Tune 1981=100) Percent changes for
Series 3 months ended 12 months ended
December | September} December December | December | December
_. 1980 1981 __1981 1931 1980 1981
Private nontarm workers I/. se ee 95.4 102.0 103.8 2.9 1.8 9.0 8.8
Workers, by occupational group
White-collar workers 2... 4. 95.2 101.8 103.9 2.0 2.1 8.7 a1
Protessional and technical
workers ee ee ee ee 95.3 103.3 195.5 2.2 Ql 10.7
Managers and administrators . . 94.7 101.6 102.8 13 2 8.6
Sales workers... ee ee 94.8 98.0 101.9 2.8 4.0 15
Clerical workers Je... 95.7 102.7 104.2 Ql LS 8.9
Blue-collar workers... eu ue 95.7 102.3 193.9 21 1.6 8.6
Cratt and kindred workers... 96.1 104.3 2.2 LA 8.5
Operatives, except transport. . 95.5 102.1 104.1 2.0 2.0 9.0
Transport equipment operatives. 95.3 101.0 102.7 19 1.7 7.8
Nontarm laborers . 1.44. 95.7 101.5 103.3 2.0 1.38 29
Service workers se. ee eee 94.3 101.8 102.7 “5 9 8.1 8.3
Workers, by industey division
Manutacturing ... +... ee 95.7 M2.1 104.0 2,3 1.9 9.4 8.7
Durables se ee ee eee ee 95.7 102%L 104.5 23 24 9.8 9.2
Nondurables .. . ee ee eee 95.7 102.0 13,1 2.1 ra 8.6 7.7
Nonmanutacturing . 2... 008 95.2 192.0 193.8 1.9 1.8 8.8 9.0
Constcuction 2... ee eee 95.9 193.9 104.3 LS 1.3 8.8 8.8
Transportation and public
utilities... . eee eee 95.6 192.9 2.7 1.6 ora B.4
Wholesale and retail trade . . H 95.1 La. L.7 1.0 7.8 7.6
Wholesale trade»... ee. | 95.9 192, 3.2 1.4 19.0 7.8
Retail trade .. ee. ee ae 94.3 tot Ll 9 7.0 7.5
Finance, insurance, and
real estate... ee eee 3.1 | 98.3 21 ALL 7.4 9.9
Services se, eee ee ee 95.7 y 103.8 1.6 IL 3.7 10.6



Table 2. Employment Cost Index toc
industry group

(No sonally adjusted)

wages

and salaries, civillan nontacm workers, 1/ by occupation and

“Indexes Gune_1981=100)

Percent chan

es for

Series | __3 months ended 12 months ended
December | September} December { December] December | December] December
__ 1980 1981 1981 1980 1981 1980 1981
Civilian nontacm workers If. ee ee ee - 102.5 104.4 - Lo - -
Workers, by occupational group
White-collac workers 2. eee ee ee - 102.6 104.7 - 2.0 - -
Blue~collac workers... ee ee eee - 102.4 104.0 - 1.6 - -
Service workers we ee eee ee eee - 102.5 103.6 - LL - -
Workers, by industry division
Manutacturing . 6. eee ee ee ee - 102.1 104.0 - 1.9 - -
Nonmanutacturing 6... ee ee eee - 102.7 104.5 - 1.8 - -
Services se ee eee ee eee - 104.4 106.6 - 21 - -
Public administration 2/,... +. - 103.8 105.5 - 1.6 - -
Private nontacm workers 3/......44. ) 954 102.0 103.8 2.0 1.8 9.0 8.8
Workers, by occupational group
White-collar workers 6... eee ee | 952 101.8 103.9 2.0 21 8.7 OL
Blue-collar workers... eee ee ee | 957 102.3 103.9 2.2 1.6 9.6 8.6
Service workers ss eee ee eee ee | 94.8 101.8 102.7 15 “9 8.1 3.3
Workers, by industry division
Manufacturing». 5 eee ee ee ee | OSG 102.1 104.0 2.3 1.9 9.4 8.7
Nonmanutacturing 6. 6. eee ee ee | 952 102.0 103.8 1.9 1.8 8.8 9.0
State and local government workers . . - 195.0 107.0 - 1.9 - -
Workers, by occupational group
White-collar workers se ee ee eee - 105.4 107.5 - 2.0 - -
Blue-collar workers . . tee - 103.9 105.5 - LS - -
Workers, by industey division
Services . vet ee ee ee eee - 105.5 107.6 - - -
Schools vee ee ee ee tae - 105.7 107.7 - - -
Elementacy and secondary +... 4 - 106.9 107.9 - - -
Hospitals and other services 4/.. - - 104.6 107.3 - - -
Public administeation 2/. 66 0 0 ee - 103.3 105.5 - - -

1/ Exctudes private household and Federal govecament workers.
2/ Consists ot legislative, judicial, adn

3/ Exciudes private household workers.

4

> Data not availahle.

Includes, for example, library, social, and health services.

istrative, and regntatory activities.


Table 4,

Employment Cost Index foc wages and salaries, p
region, and area size

rivate nonfarm workers, J/ by bargaining status,

Not seasonally adjusted)
Inde xe (June _1981=100) Percent changes for
Series 3 months ended 12 months ended
December | September] December December | December | December] December
1980 1981 1981 1980 1981 1980 1981
Workers, by bargaining status
Union we... ee 95.8 102.7 105.0 2.5 2.2 10. 9.6
Manufacturing .. . . 96.1 102.6 104.7 2.4 2.0 11.0 8.9
Nonmanutacturing . . . 95.5 102.8 105.2 2.6 2.3 10.8 10.2
Nonunion swe. we . 95.1 101.6 103.2 1.8 1.6 8.0 8.5
Manutacturing .. , . 95.4 101.7 103.3 2.1 1.6 7.9 8.3
Nonmanufacturing . . . 95.0 101.6 103.2 1.7 1.6 BL 8.6
Workers, by region
Northeast .... 4, . 96.0 101.7 104.4 1.9 2.7 8.6 8.8
South we... eae . 94.9 101.9 102.8 19 9 8.8 8.3
North Central ..., . 95.3 101.6 103.3 2.2 17 8.8 8.4
West... ee eee + 95.3 103.2 105.1 2.0 1.8 10.8 10.3
Workers, by area size
Metropolitan areas . . 95.4 102.1 104.0 2.0 1.9 9.0 9.0
Other areas . , . . 95.1 101.3 193.1 2.4 1.3 9.4 8.4

A/ Pxcludes private household workers.

NOTE:

‘The indexes tor these series are not
occupation, and industry series.

stcictly comparable to those for the aggregate
explanatory note.



>

i .
United States :
Department
of Labor

Bureau of Labor Statistics Washington, D.C. 20212

Judith Finger (202) 523-1165 USDL: 82-60
Kathryn Hoyle (202) 523-1913 FCR Release: 10.00 A.M. E.S.T.
Friday, February 26, 1982

EMPLOYMENT COST INDEX — FOURTH QUARTER 1981

The Employment Cost Index (ECI), covering compensation rates for workers in the civilian
nonfarm economy, increased 1.9 percent in the 3 months ended December 1981, the U.S. Depart-
ment of Labor's Bureau of Labor Statistics reported today. Wages and salaries alone also
rose 1.9 percent for these workers in the civilian economy, except private household, farm,
and Federal government employees. The index, June 1981=100, stood at 104.5 for compensation

rates (wages, salaries, and employer costs for employee benefits) and 104.4 for wages and
salaries alone.

For private industry workers, fourth-quarter 1981 increases in both compensation and wages
and salaries were below increases recorded in the same quarter a year ago. This continues a
pattern that began in the second quarter 1981. The slowdown in compensation and wage Increases
was most evident in the manufacturing industries.

In nonmanufacturing, wage and compensation advances were only slightly lower than those of
a year ago. A major exception was in transportation and public utilities, where wages increased
1.6 percent in the fourth quarter 1981 compared with 2.7 percent in the same quarter a year
earlier. Wage concessions by airline workers in 1981 dampened wage advances in this industry
group.

Compensation and wage rates increased 2.0 percent and 1.9 percent, respectively, in State
and local governments-~-similar to those gains recorded in private industry during the quarter.

December 1980-December 1981, Private Nonfarm Workers

Compensation rates for all private nonfarm workers rose 9.8 percent during the year, equal
to the increase shown in December 1980. Blue-collar workers' gains, at 9.6 percent, however,
were down sharply from last year when they registered 10.1 percent. The decline was offset by
increased gains among white-collar workers where compensation rose 10.1 percent compared with
9.5 percent a year ago.

Wages and salaries increased 8.8 percent for the year ended December 1981, down slightly
trom the 9.0 percent increase in 1980. Wage gains for particular worker groups, however, were
signiticantly difterent from the previous year, declining sharply in some areas while increas-
ing in others. Union workers, for example, recorded a 9.6 percent wage increase in 1981 com=
pared with 10.9 percent in 1980, Part of this lower wage increase reflected a relatively light
bargaining year in 1981, Additional factors were wage concessions by workers in meatpacking,
airlines, and automobile industries.

Beginning with this release, index numbers based on
June 1981=100 are available for all published series in
the Employment Cost Index. The full historical series,
as well as the method of index computation, is
available upon request.



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 compensatlon 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
“insurances
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.

Fach 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 a 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
local 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 classifled by owmership--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. Therefore, the 1970 employment weights are reallocated within these
serles 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 will be in an article in the

Monthly Labor Review this summer.


Wage increases for worker groups that are highly unionized, such as those in blue-collar

occupations, manufacturing industries, and transportation and public utilities, showed a similar
pattern of deceleration of wage gains in 1981 compared with 1980. -

Wage gains for nonunion employees, on the other hand, rose 8.5 percent in 1981, up from
8.0 percent in 1980. Similar patterns were found for white-collar occupations and industries
which tend to be less unionized.



Table lL, Employment Cost Index toc

(Not seasonally adjusted)

compensation (vages, salaries, and employer costs tor employee benefits),
civilian nontarm workers, 1/ by occupation and industry group

Tndexes Chune 1981=100)

Percent changes for

Series 3 months ended 12 months ended
December | September | December [December [December [December December
1980 1981 1981 1980 1981 1980 1981
Civilian nonfarm workers 1/... 2. - 102.6 104.5 - 1.9 - -
Workers, by occupational group
White-collar workers 2... ee - 102.7 104.9 - 2.1 - -
Blue-collar workers... 4 ee - 102.3 104.1 - 1.8 - -
Service workers... _ - 102.8 104.2 - 14 - -
Workers, by industry division
Manufacturing. ss ee ee ee - 102.1 104.0 - 1.9 - -
Nonmanutacturing . se. eee - 102.8 104.8 - 1.9 - -
Services 2... eee ee ee - 104.4 107.1 - 2.6 - -
Public administration 2/,... - 104.3 106.0 - 1.6 - -
Private nonfarm workers 3/. 2. wee 94.7 102.0 104.0 21 2.0 9.8 9.8
Workers, by occupational group
White-collar workers . 1. eee 94.5 101.8 104.0 21 2.2 9.5 10.1
Blue-coliar workers... 2.5 94.9 102.2 104.0 2.1 1.8 10.1 9.6
Service workers we. eee eee 94.3 101.9 103.11 17 1.2 9.4 9.3
Workers, by industry division
Manutacturing 9. 6 eee eee 94.7 102.1 104.9 2.2 1.9 9.8 9.8
Nonmanutacturing «see es 94.7 102.0 103.9 2.0 1.9 9.8 9.7
State and local government workers . - 105.3 107.4 - 2.0 - -
Workecs, by occupational group
White-collac workers . 6. . - 105.7 107.8 - 2.0 - -
Blue-collar workers se ee eee - 104.2 105.9 - 1.6 - -
Yorkers, by industry division
Services see ee eee eee - 105.8 197.9 - 2.0 - -
Schools se eevee ene - 106.0 107.9 - 1.3 - -
Blementacy and secondary . « - 106.3 103.3 - 1.9 - -
Hospitals and other services 4/ - 105.0 107.8 - 27 - -
Public administeation te - 104.3 106.9 - 1.6 - -

dy

2/  Consis

3/ Excludes private household workers.
aw

= Data not available.

Includes, tor example, Library, social, and health servic

Excludes private household and Federal govecament workers.
ss of legislative, judicial, administrative,

Se

and cegnlatory activities.