*siey10M pToyesnoy eeayad sapntoxy /T

8°6 Z°OT | 6°OT 8°6 o°% BT | Le hid °% ‘+ ¢ + Sutanjoeznuemuoy
f°OT S°OT | S°OT 8°6 1% oc | ste C'S et cots oe * Bupanjoegnuey
uoystatp Azzsnpuy Aq ‘srsy10Mq
6°6 T°OT | S*OT 7°6 6°T L° W°sS L°t T°? +s 0+ + szeyzom eoTazeg
0°OT S°OT} L£°OT T°OT cara €°% | Ove T°? Lt * *  SteyxIOM TeTTOO-enTg
0°OT Z°OT | 8°OT s°6 8°T 8°T | 6°€ ard ore * * Si9yA1OM IVT TOO=3IT YM
dnoid Teuopzednos0 kq “sxayi0M
0°OT €°OT| £°OT 8°6 0°% 6°T | 9°€ ax4 e°% sts 4 9 (PT sreyzom
wiejuou ozeATIg
1861 T861 | 1861 O86T T86T T86T | T86T O86T 0861
zequeides| _eunr | yorey | tequeseg | zequejdes| eunc| yoreq | requedeq | requezdeg

pepus syjuow ZT

pepue syquom ¢

Aojy sosueyo qusdieg

seqieg

o

/T S1@¥IOM WAejJUOU B}BATIg—-xepul 3809 JUeMAOTduY aY2 UT eueYS UOTIESUadMOD Jo Seley “7 eTqET


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 defini-
tions. 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 administra~
tion. Each establishment is also classified by owership--State, local, or private.

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 2.0 percent change in wage and salary rates for "private nonfarm
workers" in the third quarter of 1981 (table 3) is the actual percent change in straight-time
average hourly earnings from the pay period including the 12th day of June 1981 to the comparable
pay period in September 1981.

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.


Table 1. Rates of compensation and wage and salary change in the
Employment Cost Index

Percent changes for 3 months

ended
Series September 1981
Compensation Wages and salaries
Civilian nonfarm economy 1/ 2.6 2.5
Workers, by occupational group
White-collar workers... see 2.7 2.6
Blue-collar workers 1... 4 2.3 2.4
Service workers .. 4 2 see 2.8 2.5
Workers, by industry division
Manufacturing «+s + + eee 2.1 2.1
Nonmanufacturing . . +. se eee 2.8 2.7
Services . 6 6 1 ee seen 44 4.4
Public administration 2/... 4.3 3.8
Private nonfarm economy 1/ . 2.0 2.0
Workers, by occupational group
White-collar workers ...... 1.8 1.8
Blue-collar workers ... +s 2.2 2.3
Service workers 2... ee eee 1.9 1.8
Workers, by industry division
Manufacturing eee ew wwe 2.1 2.1
Nonmanufacturing ~~ . 2. 2 6 + ee 2.0 2.0
State and local governments ... . 5.3 . 5.
Workers, by occupational group -
White~collar workers .....- 5.7 i . 5.4
Blue-collar workers .....-. 4.2 3.9

Workers, by industry division
Services . 1. 1 see eee ee 5.8 5.
Schools . ss. eee ee eee 6.0 5.

Elementary and secondary . . 6.3 6.
Hospitals and other services 3/ 5.0 4,
Public administration 2/.... 4.3 3.

“Ores

i/ Excludes private household and Federal government workers.
2/. Consists of legislative, judicial, administrative, and regulatory
activities.

3/ Includes, for example, library, social -and health services.


Tate 3. Rates of wage and

lary change in the Exployment Cost Index—Private nonfarm workers 1/

Percent changes for

3 months ended 12 monthe ended
Series
Septenber | Decenber | March | June | September | Septenber| Deceaber | March | June | Septesber
1980 1980 | get | 1981 asat 1980 1980 19a | 1981 | i981
Private nonfarm workers eee ee ee ee ee 2.2 2.0 27 | 2.0 2.0 9.4 9.0 93] 93 | 90
Workers, by occupational group
White-collar workers vee ee ee ee 2.0 aa] Le 1.8 O21 87 9.3] 9. 9.2
Professional and technical workers... see 202 3a | 18 3.3 ALL 10.5 10.2 | 10.1 | 10.8
Managers and adninistratore ... se ee 13 al] ia 16 r3 7.2 as | 8.7 | 87
Sales workers. ve eee cece cette 208 us| 3:9 | -20 1.8 6.7 B.7 | 10.2 | 6.2
Clerical workers. 3st 21 30 | 16 27 912 a1 a2] a8 | 95
Bluercollar workers ss ee eee eee ee eee pat 2.0 | 24 2.3 10.0 9.6 93] 9.2 | 92
Graft and kindred workers sss. serene 222 he | 22 29 OL 94 96) 94 | 95
Operatives, except transport... se ee ee 2.0 24 | 23 20 113 10.2 94] 9.3 | 91
Transport equipment operatives. ss se ee ee 1s us | 3:3 1.0 88 a2 86 | 84 8.0
Nonfara laborers. see ee secs r eres 2.0 no | 25 ns 10.5 9.5 ae | 9.0 Bil
Service workers sess see eee ete eee ee 7 Ls a7] 8 1.8 8.4 a. 93] 89 | 90
Workers, by industry division
Manufacturing 66 0 ee eee ee eee 2.0 2.3 a2} 2.2 ar 10.2 9.4
Durables. ee eee eee eee 25 23 23 | 21 2 10.8 9.8
Nondurables soft teehee eee 12 21 22) 22 2.0 9.2 86
Nonmanufacturing 6 ee ee eee ee ee 2.3 3.0 | 2.0 2.0 9 8
Construction see eee ee ee et eee 29 ue | 24 310 4 8
Transportation and public utilities » 2... 1 se 3.2 23 | 23 210 4 1
Wholesale and retail trade... ee ee ee us 3.2 | 19 13 4 8
Wholesale trade se ee eee eee 3 27 | us 2.0 9 0
Retail trades sete eee eee Le a4 | 200 Lo 9 0
Finance, tngurance, and real estate... 1s ess 2.0 a7] ws | -L7 7 4
Services see eee eee ee eect eeeee 25 ao | la 36 6 7
Workers, by region
Wortheast oe ee eee ee ee eee Lg 19 24 | 17 17 8.9 8.6 as | a1 | 79
South ves sees cece tee e nents Le Le 33 | 20 Lg 9.3 a8 93] 94 | 94
North Central sve vs renee sree eres Lo 22 30 | 1.9 16 9.2 8.8 9.4] 9.2 | 9.0
West eee essere cee e ener ere raee 34 2.0 arf aa 32 10.6 10.8 10.9 | 10.7 | 10.4
Workers, by bargaining statue
Unions ve ee cee eee eee eee e ee eeee 2.9 25 u7 | 2.6 27 10.9 10,9 10.2 | 10.1 | 9.9
Manufecturing ose eee eee 28 2b uz | 203 26 12.0 10 10.1 | 9.6 | 9.4
Wonmanufacturing ©... see eee 3.0 26 u7 | x0 28 909 10.8 10.4 | 10.6 | 10.4
Monunion ss ve ee ee eee ee ee ee eee 18 18 3.3 | 1.8 16 86 8.0 ag | o0 | 88
Manufacturing ss. ss eee eee ee 12 21 Pea 17 8.6 nD 726 | 84 | 89
Nonmanufacturing s+ se ee ee eee 2.0 7 as | 7 16 86 al 9.4 | 9.2 88
Workers, by azea
Metcopoliten areas ss ee ee ee ee eee 2.3 2.0 26 | 21 21 9.5 9.0 a5] 94 | on
Other areas ee. eects 1s 24 33 | 17 ne 89 4 oa] 2 | 95

1/ Excludes private household workers.



United States
Department Y
of Labor

Bureau of Labor Statistics Washington, D.C. 20212

Judith Finger (202) 523-1165 USDL: 81-534
Kathryn Hoyle (202) 523-1913

FOR RELEASE; 2;00 P.M, E.S.T
Monday, November 30, 1981

EMPLOYMENT COST INDEX — THIRD QUARTER 1981

Employee compensation rates measured by an expanded Employment Cost Index (ECI), now
covering workers in the civilian nonfarm economy, rose 2.6 percent in the 3 months ended in
September 1981, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.
Wage and salary rates increased 2.5 percent. The expanded measure, published for the first time
in this release, covers all workers in the civilian economy except private household and farm
workers and Federal government employees. Data for State and local government employees, in-
cluded in the measure for the first time, also are published separately.

Excluding data for State and local government employees, compensation rates for workers in
the private nonfarm economy rose 2.0 percent in the 3 months ended September 1981. The quar-
terly increase was below the 2.3 percent rise for the same quarter in 1980, (The ECI is not
seasonally adjusted.) Compensation rates—-covering wages, salaries, and employer costs for
employee benefits--increased 10.0 percent for the 12 months ended in September 1981. Wages
and salaries also rose 2.0 percent in the third quarter 1981, compared with the 2.2 percent
rate of a year earlier. Wage and salary rates were up 9.1 percent over the year.

June _1981-September 1981

, Workers in the civilian nonfarm economy, excluding Federal government, registered gains of
2.6 percent in compensation and 2.5 percent in wages and salaries during the third quarter of
1981. (See table 1.) The increases reflected different patterns in the private and State and
local government sectors of the economy. Compensation and wage advances were 2.0 percent in
the private nonfarm sector, contrasted with about 5 percent in State and local governments.
Wage and benefit adjustments in State and local governments, which tend to be heavily concen-
trated in the third quarter, included increases for teachers at the beginning of the new
school year as well as adjustments for other workers such as those in hospitals and public

administration.


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 average
hourly earnings. Straight-time earnings are total earnings before payroll deductions, excluding
premium pay for overtime, work on weekends and holidays, and shift differentials. Production
bonuses, incentive earnings, commission payments, and cost-of-living adjustments are included
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


In the private nonfarm sector, employee compensation increases by major occupational groups
(white-collar, blue-collar, and service workers), as well as for manufacturing and nonmanufac=
turing industries, were closely clustered around the 2.0 percent overall increase. (See table 2.)
There was a similar pattern for wage and salary advances among these groups. (See table 3.)

Wage changes within major occupational groups, however, showed substantial variation. For
white-collar occupations, changes ranged from a 2.0 percent decrease for sales workers (reflect-
ing lowered commission earnings for stock and bond brokers) to a 3.3 percent increase for pro=
fessional and technical workers. Within the blue-collar group, wage gains were lowest for
transport equipment operatives (1.0 percent) and highest for craft and kindred workers
(2.9 percent).

Wage gains for workers in durable and nondurable goods producing industries were virtually
the same as the overall advance for manufacturing (2.1 percent). In contrast, wage changes in
nonmanufacturing industries varied widely. They ranged from ~1.7 percent in finance, insurance,
and real estate to 3.0 percent in construction (where collective bargaining negotiations occur
in the spring and summer months) and 3.6 percent in the service industries (reflecting pay
adjustments in private educational institutions).

Union workers’ pay gains in the private nonfarm economy (2.7 percent) outpaced those for
nonunion workers (1.6 percent). Within the union sector, workers in manufacturing and nonmanu-
facturing industries received similar wage increases, 2.6 percent and 2.8 percent, respectively.
In the nonunion sector, corresponding increases were 1.7 percent and 1.6 percent.

Wage increases for workers in the West, 3.2 percent, were considerably higher than they
were for workers in other regions. Employees in the North Central region registered the lowest
pay gains, 1.6 percent. Wage advances for workers in metropolitan areas (2.1 percent) were
higher than those for workers in other areas (1.8 percent).

September 1980-September 1981, Private Nonfarm Workers

Compensation rates for white-collar, blue-collar and service workers rose at
about the same pace as the 10.0 percent overall increase in the year ended September 1981.
Wage gains over the year for these occupational groups were also about the same as the

9.1 percent overall increase.


Compensatién ‘increases for workers in manufacturing industries registered 10.2 percent
compared: with 928: percent for workers in nonmanufacturing industries. Wage and salary gains
were. the same.for both. industry groups, 9.1 percent.

For. union workers, wages and salaries rose 9.9 percent while nonunion workers received

. 8.8 percent wage increases. Corresponding gains in manufacturing industries were 9.4 percent
and 8.9 percent. The gap between union and nonunion employees was considerably wider in the
nonmanufacturing sector=~10.4 percent and 8.8 percent, respectively.

Regionally, workers in the West showed the largest wage gains, 10.4 percent, while those
in the Northeast region received the smallest increases, 7.9 percent. Workers in metropolitan

areas registered pay gains of 9.1 percent compared with 9.5 percent for those in other areas.