EC! cumulative quarterly percent changes,
September 1975—March 1979

Occupational group

All workers

- White—collar workers
- Blue—collar workers
~—-——- Service workers

PERCENT

435

Industrial category

All private nonfarm
+ Manu facturing

+ Nonmanu facturing

t

Union. status

Union occupations _
veces Non—union occupations

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Regions
Northeast
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1975 1976 1977 1978 1979



Rate of wage and salary changes in Employment Cost Index

(@ercent changes)
Series 3 months ended 12 months ended
March [June [September | December | March | June | Septenber | Decemoer | Watch
1978 | 1978 1978 1978 1979 1978 1978 1978 1979
All private nonfarm workers -—-------~-- 1.9 2.1 2.9 15 2.0 | 7.8 8.0 ad 7.8
Workers, by occupational group
Wihite-collar workers —-—--——~-——- 1.8 2a. 1.9 1.2 18 7.2 7.3
Professional and technical workers ~ | 1.6 1.3 2.1 15 6.9 6.7 ee
Managers and administrators — 2.4 1.8 1.4 1.5 6.4 7.2 7.2
Sales workers 0.3 5.4 2.5 0.1 1247 8.5 7.9
Clerical workers 2.4 14 1.8 1.3 7.4 7.6 7h
Blue-collar workers -=-— 1.8 2.2 2.0 1.9 8.0 8.2 8.3
Graft and kindred workers —— 1.3 2.3 2.2 1.6 7.8 a7 8.5
Operatives, except transport — 2.5 1.4 2.0 2.3 3.3 8.4 7.8
Trensport equipment operatives -——-- | 1.3 45 14 1.7 8.3 9.2 9.3
Nonfarm laborers —-----~=— 24 2 1.7 2.4 7.8 8.8 9
Service workers ——~-——--. 3.6 Lg 2.3 0.6 3.2 | 8.4 9.1 8.7 8.3
Workers, by industry division
Manufacturing -—— 2.0 1.6 1.8 17 7.8 74 8.3 8.0
Durables —— 1.8 1.7 1.9 1.8 | 7.9 7.6 8.4 8.4
Nondurables 2.3 LS 1.6 15 | 7.6 71 8.2 Te
Nonmanufacturing —--—— 1.9 2.4 2d 2.2 | 7.8 8.3 7.4 7.6
Construction — 1.2 2.9 2.4 2143 15 8.1 7.8 7.9
Transportation and public
utilities 1.4 2.1 2.0 2.6 19 7.9 7.6 8.9
Wholesale and retail trade - 3.1 2.7 1.2 2.1 | 8.5 8.7 8.3 73
Wholesale trade —--~—— 2.5 1.8 a 1.6 | 6.8 8.2 75 6.6
Retail trade —-———--. 3.3 3.1 1.2 2.3 | 91 8.9 8.6 7.6
Finance, insurance.
real estate —— * * * * 3.1 * * * *
Services —--------- 1.7 1.7 2.4 0.7 21 6.0 6.7 6.7 7.0
Workers, by region
Northeast 1.8 1.6 1.8 1.8 1.5 | 6.8 6.8 71 6.8
South -— 3.0 2.2 2.3 1.6 2.6 | 8.4 8.8 9.3 8.8
North Central 1.3 2.3 1.6 1S 1.9 | 8.2 7.8 6.9 75
West ——-—-~ 1.9 2.2 2.0 1.5 2.0 | 7.6 8.1 7.8 7.9
Workers, by bargaining status
Union 1.6 2.0 21 2.0 1.8 | 7.6 7.9 8.0 8.2
Manufacturing 17 1.7 2.4 2.7 17 | 8.1 8.2 8.7 8.7
Nonanufacturing ——— 15 2.3 1.9 Lb 1.9 | 7.2 7.6 73 7.7
Wonunion —~- —- | 2.2 2.2 1.9 tel 21) 7.9 8.0 7.6 7.5
Manufacturing 2.2 1.6 1.3 2.6 7 | 7.5 6.8 7.9 7.3
Nonmanufacturing —- 2 2.5 21 0.5 2.3 | 8.0 8.6 1S 7.6
Works by area |
Metropolitan areas —— 17 2.1 2.0 1.6 2.0 | 7.6 7.8 75 7.8
Other area: 264 2.3 17 1.3 2.1 | 8.8 8.7 9.0 7.6

* Not available


2

United States

Department >

of Labor
Bureau of Labor Statistics Washington, D.C. 20212

USDL: 79-383

B. Levin (202) 523-1165 FOR RELEASE: Immediate
K.D. Hoyle (202) 523-1913 Thursday, May 31, 1979
Home: 333-1384

EMPLOYMENT COST INDEX--MARCH 1979

Wage and salary rates measured by the Employment Cost Index (ECI) rose 2.0 percent for the
3 months ended in March 1979, the Bureau of Labor Statistics of the U.S. Department of Labor
reported today. The 2.0 percent first quarter increase compares with a 1.9 perceat increase in
the same quarter a year earlier. The wage and salary rise was 7.8 percent for the 12 months
ended in March. Because the ECI is a relatively new statistical series, the data are not
seasonally adjusted.

The Employment Cost Index measures changes in straight-time average hourly earnings. These
changes reflect wage and salary decisions made during the period measured, such as negotiated
settlements, changes instituted by employers, minimum wage adjustments, and other pay changes.
The ECI currently measures only changes in wages and salaries. With the inclusion of employee
benefit costs in'1980, the series will also measure total compensation changes.

December 1978-March 1979

On the average, pay increases were highest--3.1 percent--in finance, insurance, and real
estate. This is the first quarter that data for this industry division were published. Wages
rose 2.6 percent in transportation and public utilities where a settlement affecting a large
number of workers was reached in the railroad industry.

The relatively smaller 1.3 percent increase in construction reflects the seasonal pattern
of collective bargaining which concentrates settlements and deferred pay increases in the spring
and summer. Earnings for workers in nondurable manufacturing went up 1.5 percent, compared with

a 2.3 percent rise in the first quarter of 1978.


-~2-

Among occupational groups, service workers registered the highest increase, 3.2 percent
compared with 3.6 percent one year earlier.

Pay gains for white-collar workers as a group were dampened by a 0.2 percent decline in
earnings for sales workers. Pay for sales workers is heavily influenced by commission earnings,
particularly for stock brokers, whose earnings fluctuate with the volume of sales. The ECI is
computed from wage and salary rates, where available, or straight-time average hourly earnings
for workers paid under incentive or commission pay systems. The average hourly earnings are
affected by fluctuations in the volume of output and sales, as well as changes in the rate
structure.

Pay for nonunion workers advanced at a faster rate than for workers covered by collective
bargaining agreements. Pay changes for unionized workers reflect the timing of collective bar-
gaining settlements, which were unusually light in the first quarter of 1979. Workers in the
South recorded the largest regional pay gains--2.6 percent.

March 1978-March 1979

Over the 12 months ended in March 1979, service and blue-collar workers' pay was up 8.3 per~
cent; white-collar workers' rose 7.3 percent. Pay gains in manufacturing (8.0 percent) were above
those in nonmanufacturing (7.6 percent). Pay for union workers also advanced at a faster rate
than for nonunion workers, 8.2 percent compared with 7.5 percent. Regionally, pay gains ranged
from 6.8 percent in the Northeast to 8.8 percent in the South. Workers in metropolitan areas had

a higher rate of increase (7.8 percent) than those in nonmetropolitan areas (7.6 percent).


~3-
Explanatory Note

The Employment Cost Index is designed to measure changes in the rate of compensation of a

rdardized mix of labor services, much like the Consumer Price Index measures changes of a fixed
weight market basket. The Employment Cost Index (ECI) measures change in the price of labor. It
does aot measure change in the level of well-being of workers.

Statistics presented in the following table and chart are percent changes in straight-time
average hourly earnings over the period indicated. The statistics are not annualized, nor are
they adjusted for seasonal influences. Yor example, the 2.0 percent change, shown in the table,
for the "all private nonfarm workers" series’ in the first quarter of 1979 is the actual percent
change in straight~time average hourly earnings from the pay period includi-g the 12th day of
the survey month of December 1978 to the comparable pay period in March 1979. The 30.3 percent
change, shown.in the chart, for the "manufacturing" series is the cumulative quarterly percent.
change in straight-time average hourly earnings from the pay period including the 12th day of
the survey month of September 1975 to the comparable pay period in March 1979. The computation
of percent changes spanning more than one survey period is accomplished by compounding successive
changes for individual quarters. In actual practice, the compounding calculations are made to
the fifth decimal place.

The "union" series includes those occupations covered by collective bargaining agreements.
The "nonunion" series includes occupations not covered. Beginning with the September 1978
quarter, wage and salary data for Alaska and Hawaii are included in the ECI.

A description of the survey design is provided in the chapter on the Employment Cost Index
in the BLS Handbook of Methods, BIS Bulletin 1910. A general description of the Employment Cost

Index is avdilable upon request.