14

Table 7. Employment Cost Index for wages and salaries for private industry workers by bargaining status,

region, and area

(Not seasonally adjusted data)
Indexes (June 1989=100) Percent changes for—
Bargaining status, region, and area June Mar. Jun. 3 months ended- 12 months ended-
1999 | 2000 | 2000 June Mar. Jun. June Mar. Jun.
1999 2000 2000 1999 2000 2000
Bargaining status
Union 134.7 137.2 | 138.5 0.8 05 0.9 34 27 28
Blue-collar occupations 132.5 | 135.2 | 136.5 1.0 5 1.0 34 3.0 3.0
Goods-producing industries? .. 133.8 137.2 138.4 Ww 8 9 3.4 3.7 3.4
Service-producing industries? 135.8 137.6 | 138.9 3 3 9 27 1.6 23
Manufacturing 134.7 | 138.8 139.7 8 9 6 3.3 3.9 37
Blue-collar occupations 134.1 137.8 138.7 8 7 7 3.2 3.6 3.4
Nonmanufacturing ..... 134.6 136.4 | 137.8 7 4 1.0 29 2.0 24
Nonunion 140.7 | 145.1 146.7 12 1.3 V1 3.7 44 4.3
Blue-collar occupations 137.5 141.4 142.9 1.0 1.2 14 35 38 3.9
Goods-producing industries’ . 138.8 142.9 | 144.7 7 1.3 1.3 3.0 37 43
Service-producing industries? 141.3 145.8 | 147.3 1.4 1.3 1.0 4.0 47 4.2
Manufacturing 140.5 144.4 146.1 8 1.0 4.2 32 36 4.0
Blue-collar occupations 139.2 142.8 | 144.2 5 8 1.0 3.0 341 36
Nonmanufacturing 140.5 145.0 146.6 14 1.4 14 3.8 46 43
Region
138.2 142.3 | 143.7 8 1.0 1.0 3.3 38 4.0
139.4 143.0 144.6 Ww Wt 1.1 3.3 37 3.7
141.0 145.3 147.1 15 phe 1.2 3.7 46 43
140.2 144.7 146.3 14 15 11 42 47 44
Area
Metropolitan .. 139.9 144.14 145.7 12 ani 11 3.6 42 41
Other 138.4 142.2 143.7 9 1.4 1.1 3.7 37 38

1 Includes mining, construction, and manufacturing.
Includes transportation, communication, and public utilities;
wholesale and retail trade; finance, insurance, and real estate; and service
in

3 The regional coverage is as follows: Northeast: Connecticut, Maine,
Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania,
Rhode Island, and Vermont; South: Alabama, Arkansas, Delaware, District
of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi,
North Carolina, Okiahoma, South Carolina, Tennessee, Texas, Virginia,
and West Virginia; Midwest: llinois, Indiana, lowa, Kansas, Michigan,

Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and
Wisconsin; and West: Alaska, Arizona, Califomia, Colorado, Hawaii,
Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and
‘Wyoming.

NOTE: The indexes for these series are not strictly comparable to those
for the aggregate, occupation, and industry series.


Table 1. Employment Cost Index for total compensation’, wages and salaries, and benefit costs by industry and

occupational group
(Seasonally adjusted data)

Indexes (June

Percent changes for 3-months ended—

1989=100)
Industry and occupational group
Mar. Jun. Sep. Dec. Mar. June Sep. Dec. Mar, Jun.
2000 2000 1998 1998 1999 1999 1999 1999 2000 2000
TOTAL COMPENSATION
Civilian workers .. 146.4 | 147.9 09 0.6 05 11 0.8 1.0 14 1.0
State and local govemment 145.4 | 146.5 8 6 6 9 8 V1 8 8
Private industry 146.6 148.2 14 6 A Ww 2 1.0 15 a
Industry
Goods producing? 144.9 146.6 7 5 8 6 9 V1 1.6 1.2
Construction? 141.0 142.9 5 Wa 9 7 7 1.0 1.4 1.3
Manufacturing .. 145.9 147.4 8 4 7 7 a V1 16 1.0
Durables 146.6 | 148.3 8 4 6 7 9 1 19 1.2
Nondurables 144.7 | 146.0 8 5 7 7 a 1.0 1.2 a
Service producing? .. | 147.4 149.0 1.2 7 3 1.3 2 1.0 1.4 qt
Transportation and public utilitiesS | 143.8 | 145.8 9 7 A 1.0 5 5 1.0 1.4
Wholesale trade 150.1 151.7 1.7 15 A 1.2 1.2 1.6 1.0 11
Retail trade ... 143.4 144.6 1.0 2 8 14 5 V1 1.6 8
Finance, insurance, and real .
estate3.6 152.0 | 153.1 1.9 1 “7 3.0 1.2 5 25 7
Services 149.4 151.3 9 6 6 8 a) 1.0 1.3 13
Nonmanufacturing ... 146.8 148.4 1.2 7 4 Ww 8 1.0 15 Va
Occupational group
White collar 149.3 | 151.2 11 7 3 1.3 a) 1.0 1.6 1.3
Blue collar .. 142.7 | 144.0 7 7 7 8 a a 15 a)
Service .... 143.4 | 145.0 1.0 6 1.0 8 3 oP 8 Wa
WAGES AND SALARIES
Civilian workers ... 144.0 | 145.5 41 7 5 1.2 9 a 1 1.0
State and local goverment 144.4 | 145.5 7 8 7 9 9 1.0 9 8
Private industry .. 143.9 145.4 1.2 7 4 1.2 2 9 1.2 1.0
Industry
Goods producing?.6 141.3 | 143.0 8 7 8 7 9 a 1 1.2
Construction? 136.3 137.8 2 ani Wt 5 & 9 18 Ww
ManufacturingS 142.9 | 144.4 1.0 6 8 8 9 9 1.0 1.0
Durables6 143.0 | 144.7 1.0 7 7 9 a) 1.0 8 1.2
Nondurables 142.5 | 143.9 1.0 6 7 7 8 a Ww 1.0
Service producing? .. 145.0 146.5 14 7 3 1.4 9 9 1.2 1.0
Transportation and public ut 138.4 | 140.2 a] a a 1.3 3 4 4 1.3
Wholesale trade3 147.6 | 149.5 15 1.4 oA W 1.3 1.5 9 1.3
Retail trade ... 142.3 143.3 14 a 1.0 1.2 4 9 17 7
Finance, insurance, and real
estate3.6 .. 148.7 | 149.5 24 1.2 1.9 3.8 15, 5 24 5
Services 147.3 | 149.2 1.2 & a) 8 8 1.0 1.0 1.3
Nonmanufacturing ... 143.9 | 145.6 1.3 8 3 14 8 9 12 1.2

‘See footnotes at end of table.


18

BLS is evaluating ECI publication standards as part of its overall quality improvement plan. The first *
phase of this evaluation, a review of the statistical reliability of the ECI series, is complete. To improve the
quality of the ECI estimates, the sample size is being increased and other initiatives, such as revising
collection procedures, are being explored. All series will continue to be published until further notice,
although, as indicated above, standard errors for some series are large. The five-year moving average of
standard errors for all estimates (excluding seasonally adjusted series) will be available on the Internet site
(http://stats.bls.gov/ecthome.htm) shortly after publication of the news release.

iN

When comparing data by bargaining status, it is important to note that differences may be due to factors
other than bargaining status, such as occupational and industry mix. For example, union occupations tend to
be concentrated in blue-collar occupations within manufacturing industries. Thus, differences between blue-
collar and white-collar pay or differences in manufacturing versus nonmanufacturing industries could explain
such differences.

More detailed information on the EC] is available in several sources. These include annual bulletins--
Employment Cost Indexes and Levels, 1975-98, (Bulletin 2514), a chapter in the BLS Handbook of Methods
(Bulletin 2490), "National Compensation Measures," and several articles published in the Monthly Labor
Review and Compensation and Working Conditions. The annual bulletins are available from the
Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, or Bureau of Labor
Statistics, Publications Sales Center, P.O. Box 2145, Chicago, Illinois 60690, (312) 353-1880. Reprints of the
articles and other descriptive pieces are available upon request by calling (202) 691-6199 or sending e-mail to
(ocltinfo@bls.gov). Current and historical data are available at the web site:

(http://stats.bls.gov/ecthome.htm).

Information in this release will be made available to sensory impaired individuals upon request. Voice
phone: (202) 691-5886; Federal Relay Service Number: 1-800-877-8339.


10

Table 4. Employment Cost Index for total compensation’ for private industry workers, by bargaining status,

region, and area
(Not seasonally adjusted data)
Indexes (June 1989=100) Percent changes for—
Bargaining status, region, and area une Mar. un 3 months ended- 12 months ended-
1999 | 2000 | 2000 | June | Mar. Jun, June Mar. Jun.
1999 2000 2000 1999 2000 2000
Bargaining status
Union .. 139.0 143.0 144.4 07 1.3 1.0 27 3.6 3.9
Blue-collar occupations 136.7 | 141.14 142.5, 8 1.6 1.0 26 41 42
Goods-producing industries? 138.2 | 143.3 | 144.8 VW 18 1.0 29 48 48
Service-producing industries? . 139.7 | 142.5 | 143.9 4 8 1.0 26 24 3.0
Manufacturing .. 138.1 144.5 | 145.4 8 25 6 26 5.5 5.3
Blue-collar occupations 137.5 | 143.9 | 144.8 7 25 6 25 5.4 5.3
Nonmanufacturing ... 139.2 | 141.7 | 143.4 8 6 1.2 29 26 3.0
Nonunion .. 142.5 147.4 149.1 1.2 15 12 3.4 47 46
Blue-collar occupations 139.0 | 143.4 | 144.9 1.0 1.4 1.0 3.2 42 4.2
Goods-producing industries? 140.5 | 145.4 | 147.2 6 1.6 1.2 26 44 48
Service-producing industries? .. 143.0 | 148.0 | 149.6 1.3 1.6 11 3.6 49 46
Manufacturing ... 141.7 146.5 148.2 7 1.5 4.2 27 41 46
Blue-collar occupations 140.2 144.4 145.8 5 1.0 1.0 26 35 4.0
Nonmanufacturing .. 142.4 | 147.4 | 149.1 1.3 1.6 1.2 3.6 48 47
Region
Northeast 141.5 | 146.3 | 147.6 7 14 a 3.3 44 43
South ... 140.7 145.0 146.7 1.2 14 1.2 3.2 42 43
Midwest .. 143.6 | 148.9 | 150.7 13 1.8 1.2 29 5.1 49
West 142.1 147.0 | 148.8 13 1.6 12 4.0 48 47
Area
Metropolitan 142.0 146.9 148.6 14 15 1.2 3.3 46 46°
Other 141.8 146.0 147.7 a] 17 1.2 3.4 3.9 42

1 Includes wages, salaries, and employer costs for employee benefits.
Includes mining, construction, and manufacturing.

3 Includes transportation, communication, and public utilities;
wholesale and retail trade; finance, insurance, and real estate; and service
indystries.

4 The regional coverage is as follows: Northeast: Connecticut, Maine,
Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania,
Rhode Island, and Vermont; South: Alabama, Arkansas, Delaware, District
‘of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi,
North Carolina, Oklahoria, South Carolina, Tennessee, Texas, Virginia,

and West Virginia; Midwest: Iiinois, Indiana, lowa, Kansas, Michigan,
Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and
Wisconsin; and West: Alaska, Arizona, Califomia, Colorado, Hawaii,
Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and
Wyoming,

NOTE: The indexes for these series are not strictly comparable to those
for the aggregate, occupation, and industry series.


7

Table 2. Employment Cost Index for total compensation’ for ci
industry and occupational group

ian and State and local government workers by

(Not seasonally adjusted data)

Indexes (June 1989=100) Percent changes for—
" 3 months ended— 12 months ended—
Industry and occupational group June Mar. Jun.

1999 2000 2000 June Mar. Jun, June Mar. Jun.

1999 2000 2000 1999 2000 2000

Civilian workers .... 141.8 146.5 148.0 1.0 1.3 1.0 3.2 43 44

Excluding sales occupations .. 141.7 146.3 | 147.7 a) 1.2 1.0 3.41 41 4.2

Industry

Goods producing2 140.0 | 144.9 | 146.6 7 17 12 27 42 47

Manufacturing 140.9 146.0 | 147.5 7 17 1.0 27 44 47

Service producing? 142.4 147.1 148.4 Ww 1.2 aS) 34 44 42

Services 143.2 148.0 | 149.3 6 1.0 a 3.0 4.0 43

Health services .. 141.4 145.9 147.5 6 V1 1.1 21 3.8 43

Hospitals. 142.2 146.3 147.7 6 9 1.0 29 3.5 3.9

Educational services 141.7 146.5 | 146.8 3 5 2 29 37 3.6

Public administration? 144.5 145.7 | 146.1 5 9 3 3.0 35 3.3

Nonmanufacturing 141.9 | 146.6 | 148.0 1.0 1.3 1.0 3.4 43 43

Occupational group

White collar .. 143.3 148.4 | 149.9 1.0 14 1.0 3.3 46 46

Excluding 143.4 | 148.3 | 149.8 8 1.3 1.0 3.2 43 45

Professional specialty and technical 142.2 | 146.7 | 148.3 6 1.0 ini 28 38 43

Executive, administrative, and managerial ...} 145.4 150.5 | 151.9 1.3 13 a2 44 4g 45

Administrative support, including clerical 143.4 148.6 150.1 6 17 1.0 29 43 47

Blue collar 138.3 142.7 144.1 9 1.5 1.0 3.0 44 42

Service .. 142.4 | 146.0 | 147.1 8 8 8 3.3 3.3 3.3

State and local government .. 141.0 | 145.5 | 145.9 4 6 3 3.0 3.6 3.5

Industry

Services ... 140.5 145.2 | 145.5 4 5 2 29 37 3.6

Excluding schools5.6 140.3 | 145.2 | 145.8 5 1.0 4 3.0 4.0 3.9

Health services .. 142.0 147.3 | 147.9 6 1.0 4 29 43 42

Hospitals 142.7 | 147.9 | 148.4 7 1 3 3.1 44 4.0

Educational services 140.3 | 145.0 | 145.2 3 4 a 28 3.6 3.5

Schools ... 140.6 145.3 | 145.5 3 A a 29 3.6 35

Elementary and secondary 140.0 144.5 144.7 3 3 a 28 35 3.4

Colleges and universities 142.1 147.4 | 147.6 3 6 a 29 4.0 3.9

Public administration4 141.5 145.7 | 146.1 5 a 3 3.0 3.5 3.3

Occupational group

White collar .. 140.2 144.9 | 145.3 3 6 3 29 3.6 3.6

Professional specialty and technical 139.3 144.1 144.5 4 6 3 27 3.8 37

Executive, administrative, and managerial ...| 142.8 147.0 | 147.2 A 6 A 3.6 34 3.1

Administrative support, including clerical 141.3 145.9 | 146.5 oA 6 A 3.0 3.2 37

Blue collar 139.5 143.7 144.2 5 8 3 32 3.5 3.4

Service .. 145.3 149.5 | 149.7 7 6 a 3.0 3.6 3.0
1 includes wages, salaries, and employer costs for employee benefits. 5 Average standard errors (SE) for the series exceed 0.3 percent for
2 Includes mining, construction, and manufacturing. ‘3-month changes and 0.6 percent for 12-month changes for the five years

Includes transportation, communication, and public utilities; wholesale ending December 1996. To assist users in ascertaining the reliability of the
and retail trade; finance, insurance, and real estate; service industries; and series, SEs for estimates in this news release (excluding seasonally adjusted
public administration. series) will be available on the Intemet site (http://stats.bls.gov/ecthome.htm).

4 Includes executive, legislative, judicial, administrative, and regulatory All series will continue to be published until further notice.
activities of State and local govemments, SIC's 91 through 96. © Formerly called hospitals and other services.


6

Table 1. Employment Cost Index for total compensation’, wages and salaries, and benefit costs by industry and
occupational group — Continued

(Seasonally adjusted data)

Indexes (June
1989=100) Percent changes for 3-months ended—
Industry and occupational group
Mar. Jun. Sep. Dec. Mar. June Sep. Dec. Mar. Jun.
2000 2000 1998 1998 1999 1999 1999 1999 2000 2000
WAGES AND SALARIES-Continued
Occupational group
White collar 146.7 148.3 1.4 0.7 04 1.2 0.9 1.0 1.3 11
Blue collarS 139.1 140.5 8 6 8 1.0 Qa 7 1.0 1.0
Service ..... 141.0 | 142.5 V1 7 1.0 8 a 1.2 1.0 11
BENEFIT COSTS
Civilian workers .... 152.3 | 154.0 7 6 3 1.0 8&8 1.2 2.0 V1
‘State and local government 148.0 148.8 9 6 5 6 A 12 1.0 5
Private industry ... 153.4 155.3 6 6 3 1.0 1.0 14 23 1.2
Industry
Goods producing? 162.3 | 154.1 4 2 7 6 8 14 27 12
Manufacturing 152.3 153.8 3 0 6 6 1.0 1.4 3.0 1.0
Service producings .. 153.9 | 156.0 7 8 4 13 | 9 44 20 1.4
Nonmanufacturing .... 154.0 156.1 7 7 3 1.2 a 9 22 1.4
Occupational group
White collar 156.3 | 158.5 7 5 3 1.0 qt 1.0 25 14
Blue collar 150.3 151.5 4 A 7 7 8 1.0 29 8
Service 150.7 | 152.6 8 2 8B 2 5 12 A 1.3
1 Includes wages, salaries, and employer costs for employee benefits. Internet site (httpu/stats.bis.gov/ecthome.htm). All series will continue to be
2 includes mining, construction, and manufacturing. published until further notice.
Average standard errors (SE) for the unadjusted series upon which this 4 ‘Includes transportation, communication, and public utilities; wholesale
series is based exceeded 0.3 percent for 3-month changes and 0.6 percent —_and retail trade; finance, insurance, and real estate; and service industries.
for 12-month changes for the five years ending December 1996. To assist 5 Estimates for transportation and public utilities reflect the changes in

users in ascertaining the reliability of the series, SEs for estimates in this ‘SiC.coding. See Explanatory Notes for further information.
news release (excluding seasonally adjusted series) will be available on the © No identifiable seasonality was found for this series.


9

Table 3. Employment Cost Index for total compensation’ for private industry workers, by industry and occupational
group — Continued

(Not seasonally adjusted data)
Indexes (June 1989=100) Percent changes for—
Fc 3 months ended- 12 months ended—
Industry and occupational group June Mar. Jun.
1999 2000 2000 June Mar. Jun. June Mar. Jun.
1999 2000 2000 1999 2000 2000
Industry-Continued
Nonmanufacturing indust 142.0 | 146.7 | 148.4 1.2 15 1.2 3.5 46 45
White collar .. 144.1 149.2 151.0 1.3 1.6 1.2 3.5 48 48
Excluding sal 145.3 150.2 152.0 Bl 14 1.2 3.4 45 46
Blue collar 136.8 140.6 | 142.3 12 14 1.2 3.3 4.0 4.0
Service . 140.4 143.5 | 145.1 9 8 Ww 3.5 34 3.3
Occupational group
White collar 144.1 149.3 | 151.1 12 1.6 1.2 3.4 48 49
Excluding sales 149.4 | 151.3 1.0 14 1.3 3.3 45 47
Professional specialty and technical .. 144.1 148.4 | 150.7 8 1.2 15 29 3.8 46
Executive, administrative, and managerial ...} 145.8 151.1 152.7 15 1.3 V4 41 5.1 47
Sales? 142.6 148.9 150.3 24 25 9 3.9 6.7 5.4
Administrative support, including
clerical ... 143.7 | 149.0 | 150.6 8 1.9 Ww 29 45 48
Blue collar 138.2 | 142.6 | 144.1 9 15 14 2.9 42 43
Precision pt ion, pair .. 138.4 | 142.3 | 144.1 9 12] - 13 3.0 37 44
Machine operators, assemblers, and
inspectors .. 138.4 144.0 145.0 & 18 7 27 49 48
Transportation and material moving .. 133.6 137.5 138.6 1.5 17 8 28 45 3.7
Handlers, equipment cleaners, helpers, and
laborers .. | 142.3 | 146.4 | 148.1 9 14 1.2 3.4 3.8 44
Service 140.6 | 143.9 | 145.4 8 9 1.0 3.4 3.2 3.4
Production and nonsupervisory
occupations .. 140.8 145.3 146.9 Ww 15 V1 34 43 43
1 Includes wages, salaries, and employer costs for employee benefits. and retail trade; finance, insurance, and real estate; and service industries.
2 Includes mining, construction, and manufacturing. 5 Estimates for transportation and public utilities reflect the changes in
‘Average standard errors (SE) for the series exceed 0.3 percent for _SIC.coding. See Explanatory Notes for further information.
3-month changes and 0.6 percent for 12-month changes for the five years 6 This series has the same industry and occupational coverage as the

ending December 1996. To assist users in ascertaining the reliability of the Hourly Eamings Index, which was discontinued in January 1989.
series, SEs for estimates in this news release (excluding seasonally adjusted
series) will be available on the Intemet site (http://stats.bls.gov/ecthome.htm).
All series will continue to be published until further notice. NOTE: Dashes indicate data not available.
Includes transportation, communication, and public utilities; wholesale


News = ©

Bureau of Labor Statistics Washington, D.C. 20212

Technical Contact: USDL: 00-215
(202) 691-6199 ocltinfo@bls.gov

Media Contact: TRANSMISSION OF MATERIAL
(202) 691-5902 hoyle_k@bls.gov IN THIS RELEASE IS EMBARGOED

Internet address: UNTIL 8:30 A.M. (EDT),
http://stats.bls.gov/ecthome.htm THURSDAY, JULY 27, 2000

EMPLOYMENT COST INDEX— JUNE 2000

The Employment Cost Index (not seasonally adjusted) for June 2000 was 148.0 (June 1989=100), an
increase of 4.4 percent from June 1999, the U.S. Department of Labor’s Bureau of Labor Statistics reported
today. The Employment Cost Index (ECT) measures changes in compensation costs, which include wages,
salaries, and employer costs for employee benefits.

Quarterly changes, seasonally adjusted

Ona seasonally adjusted basis, the 3-month increase in compensation costs for civilian workers
(nonfarm private industry plus State and local government) was 1.0 percent during the March-June 2000
period, following a gain of 1.4 percent in December 1999-March 2000. Wages and salaries increased 1.0
percent during the March-June 2000 period, following a 1.1 percent increase in the previous 3-month period.
Benefit costs rose 1.1 percent during the June 2000 quarter, falling from the 2.0 percent increase in the March
2000 quarter.

Table A. 3-month percent changes in Employment Cost Index, seasonally adjusted

Sep. Dec. = Mar. June Sep. Dec. Mar. June
Compensation Component 1998 1998 1999 1999 1999 1999 2000 2000
Civilian workers
Compensation costs 0.9 0.6 0.5 1d 0.8 1.0 14 1.0
Wages and salaries 11 0.7 0.5 12 09 09 11 1.0
Benefit costs 0.7 0.6 0.3 1.0 0.8 12 2.0 11
Private industry
Compensation costs 11 0.6 0.4 11 0.9 1.0 1.5 1.1
Wages and salaries 1.2 0.7 0.4 12 09 0.9 12 1.0
Benefit costs 0.6 0.6 0.3 1.0 1.0 1d 2.3 1.2
State and local government
Compensation costs 0.8 0.6 0.6 0.9 0.8 ‘11 0.8 0.8
Wages and salaries 0.7 0.8 0.7 0.9 0.9 1.0 0.9 0.8
0.9 0.6 0.5 0.6 04 1.2 10 0.5

Benefit costs

NOTE
This release incorporates an expanded definition of nonproduction bonuses. See page 3 for details.



12

Table 6. Employment Cost Index for wages and salaries for private industry workers by industry and occupational

group
(Not seasonally adjusted data)

Indexes (June 1989=100) Percent changes for—
a 3 months ended— 12 months ended-
Industry and occupational group June Mar. Jun.
1999 2000 2000 June Mar, Jun. June Mar. Jun.
1999 2000 2000 1999 2000 2000
Private industry workers 139.7 143.9 | 145.4 12 1.2 1.0 3.6 42 44
Excluding sales occupations 139.6 143.5 | 145.1 1.0 Ww 41 3.6 38 3.9
Industry
Goods producing! 137.3 | 141.3 | 143.0 7 Ww 12 34 37 42
Excluding sale: 136.6 140.5 | 142.1 8 1.2 11 34 37 40
White collar .. 140.5 | 145.0 | 146.8 8 1.4 1.2 3.1 40 45
Excluding 138.8 143.2 144.9 7 1.3 1.2 3.4 3.9 44
Blue collar .... 135.4 139.0 | 140.5 8 1.0 V1 34 35 38
Construction? .. 131.9 | 136.0 138.0 9 1.8 15 3.0 44 46
Manufacturing . 139.0 | 142.9 | 144.4 8 1.0 1.0 3.3 3.6 3.9
White collar .. 141.4 145.8 147.7 9 1.3 1.3 3.4 41 45
Excluding 139.6 143.7 145.6 9 1.2 13 3.4 3.9 43
Blue collar 137.2 | 140.8 142.0 7 8 aS) 34 33 35
Durables .. 139.1 143.0 | 144.7 ag 8 1.2 34 3.7 4.0
Aircraft manufacturing (SIC 3721) 141.5 146.3 | 148.6 15 1.9 1.6 3.4 49 5.0
White collar 138.0 142.1 145.2 1.8 22 ~ 22 3.2 49 5.2
Blue collar 145.5 151.8 182.1 7 13 2 3.6 51 45
Nondurables ... 138.7 | 142.7 | 143.9 5 1.3 8 28 34 37
Service producing? . 140.8 145.0 | 146.5 14 1.2 1.0 3.8 44 4.0
Excluding sales 141.4 145.3 | 146.9 V1 1.0 Ww 3.8 3.9 3.9
White collar ...... 142.3 146.9 | 148.5 1.4 1.3 a 3.9 47 44
Excluding sales 143.7 147.8 149.6 1.2 1.0 1.2 3.8 41 41
Blue collar 135.9 139.1 140.3 11 a) 9 3.7 35 3.2
Service .. 137.8 144.14 142.5 8 Ww 1.0 3.6 32 3.4
Transportation and public utilities 136.8 138.5 | 140.0 1.0 4 Ww 3.0 23 23
‘Transportation2.4 133.7 | 134.9 | 136.2 1 a) 1.0 25 2.0 19
Public utilities .. 140.6 143.2 | 144.9 1.0 1.0 1.2 3.6 29 3.1
Communications 144.1 143.4 | 145.0 12 8 11 3.9 29 28
Electric, gas, and sanitary services 140.0 143.0 | 144.7 8 1.2 1.2 3.2 3.0 3.4
Wholesale and retail trade 139.6 | 143.8 | 145.5 14 13 1.2 3.7 44 4.2
Excluding sales 141.14 145.2 146.8 1 1.3 11 44 41 4.0
Wholesale trade? 142.3 147.4 | 149.4 Wa 6 1.4 3.8 48 5.0
Excluding sale: 143.0 147.9 | 149.7 8 1.0 1.2 3.8 42 47
Retail trade ..... 138.3 142.1 143.5 15 1.8 1.0 3.8 43 3.8
General merchandise stores 134.3 | 137.8 | 138.5 4 8 5 24 34 31
Food stores? ... 132.8 136.7 | 139.5 8 1.3 2.0 1.8 37 5.0
Finance, insurance, and real estate? 142.4 | 148.7 | 149.5 3.8 24 5 5.6 84 5.0
Excluding sales ... 144.8 150.2 151.5 27 15 a) 53 65 46
Banking, savings and loan, and other
credit agencies? 154.5 162.0 | 163.3 5.7 15 8 7.9 10.9 5.7
139.8 145.5 | 146.6 17 2.8 & 37 5.9 49
139.9 143.2 | 144.1 & 14 6 3.4 29 3.0
Services .. 143.2 147.4 | 149.1 7 1.0 1.2 3.5 3.7 41
Business services? 146.3 | 152.0 | 154.1 6 15 14 54 45 5.3
Health services 139.6 143.5 | 145.3 6 a 1.3 23 3.5 41
Hospitals 138.3 141.8 | 143.3 5 6 V1 27 3.1 3.6
Nursing homes - = - x) 1.3 15 3.9 43 49
Educational services .. 144.2 148.9 | 149.6 2 5 5 3.3 3.5 37
Colleges and universities 144.4 148.9 | 149.4 2 7 3 3.4 3.3 35

‘See footnotes at end of table.


11

Table 5. Employment Cost Index for wages and salaries for civilian and State and local government workers, by

industry and occupational group

(Not seasonally adjusted data)

Indexes (June 1989=100) Percent changes for—
, 3 months ended— 12 months ended—
Industry and occupational group June Mar. Jun.
1999 2000 2000 June Mar. Jun. June Mar. Jun.
1999 2000 2000 1999 2000 2000
Civilian workers .... 139.8 144.0 145.4 1.0 VA 1.0 3.6 4.0 4.0
Excluding sales occupations . 139.6 143.7 | 145.0 9 1.0 a 3.5 3.8 3.9
Industry
Goods producing? 137.4 | 141.3 | 143.0 8 11 12 34 37 44
Manufacturing 139.0 | 142.9 | 144.4 8 1.0 1.0 3.3 3.6 3.9
Service producing? 140.7 | 145.0 | 146.3 Ww 1.0 9 37 42 4.0
Services 1423 | 146.6 | 147.9 6 8 2 3.4 3.6 3.9
Health services .. 139.7 143.8 145.3 6 9 1.0 23 3.6 4.0
Hospitals .... 138.8 | 1426 | 143.8 5 7 8 27 3.3 3.6
Educational services 140.6 145.3 | 145.6 3 4 2 3.0 3.6 3.6
Public administration? 137.8 | 1425 | 142.9 7 7 3 35 41 37
Nonmanufacturing 139.9 144.2 145.5 Ww an 2 3.6 42 4.0
Occupational group
White collar .. 141.6 146.2 | 147.6 a1 11 1.0 36 44 42
Excluding sales .. 141.8 146.2 | 147.6 ES) 4.0 7 - 1.0 35 41 41
Professional specialty and technical 141,0 144.9 | 146.4 6 6 1.0 3.2 3.4 3.8
Executive, administrative, and managerial...) 143.8 148.6 | 149.9 1.6 1.0 9 4.0 49 4.2
Administrative support, including clerical 140.9 145.5 146.9 6 1.4 1.0 3.5 3.9 43
Blue collar 135.8 139.2 140.6 1.0 ga 1.0 3.3 3.5 3.5
Service .. 139.4 | 143.0 | 144.0 8 9 7 3.6 3.4 3.3
State and local government .. 139.6 144.3 | 144.7 4 6 3 31 38 3.7
Industry
Services ... 139.9 144.6 | 144.9 3 4 2 29 37 3.6
Excluding schools45 139.6 144.3 | 144.8 4 8 3 3.0 3.8 3.7
Health services .. 140.4 145.3 | 145.7 5 8 3 29 4.0 3.8
Hospitals .... 140.6 | 145.3 | 145.6 6 8 2 3.0 4.0 3.6
Educational services 139.8 | 144.5 | 144.8 2 3 2 29 3.6 3.6
Schools ... 140.0 144.7 | 144.9 3 3 a 29 3.7 3.5
Elementary and secondary 139.9 144.5 | 144.6 3 3 A 28 3.6 3.4
Colleges and universities 139.8 | 144.9 | 145.6 a 3 5 3.2 38 41
Publié administration3 137.8 142.5 | 142.9 7 7 3 3.5 41 37
Occupational group
White collar .. 139.3 | 144.1 144.5 3 5 3 3.0 37 3.7
Profession ity 139.4 | 144.3 | 144.7 4 5 3 28 3.9 3.8
Executive, ‘administrative, and managerial...) 140.5 | 144.9 | 145.1 3 A a 3.6 34 3.3
Administrative support, including clerical 137.5 | 142.4 | 143.0 A 5 A 3.2 3.6 4.0
Blue collar 137.6 141.5 142.4 5 6 4 3.41 3.4 3.3
Service .. 142.1 146.4 | 146.6 7 5 a 3.6 3.8 3.2

1 Includes mining, construction, and manufacturing.

2 Includes transportation, communication, and public utilities; wholesale
and retail trade; finance, insurance, and real estate; service industries; and
Pubic administration.

3 ‘includes executive, legislative, judicial, administrative, and regulatory
actiytes of State and local govemments, SIC's 91 through 98.
4 ‘Average standard errors (SE) for the series exceed 0.3 percent for

3-month changes and 0.6 percent for 12-month changes for the five years
ending December 1996. To assist users in ascertaining the reliability of the
series, SEs for estimates in this news release (excluding seasonally adjusted
sefies) will be available on the Intemet site (http:/istats.bis.gov/ecthome.htm).
All series will continue to be published until further notice.

Formerly called hospitals and other services.


8

Table 3. Employment Cost Index for total compensation’ for private industry workers, by industry and occupational
group

(Not seasonally adjusted data)
Indexes (June 1989=100) Percent changes for—
i 3 months ended— 12 months ended—
Industry and occupational group June Mar. Jun.
1999 2000 2000 dune Mar. Jun. June Mar. Jun.
1999 2000 2000 1999 2000 2000
Private industry workers .. 142.0 | 146.8 | 148.5 11 15 1.2 3.3 46 46
Excluding sales occupations 141.9 146.5 148.2 1.0 1.4 1.2 3.2 43 44
Industry
Goods producing? . 139.9 144.8 146.6 7 1.6 1.2 27 42 48
Excluding sales 139.3 | 144.2 | 145.9 7 17 12 27 43 47
White collar 142.7 | 148.1 150.1 7 1.8 1.4 28 45 5.2
Excluding 141.3 | 146.5 | 148.4 7 1.8 1.3 28 44 5.0
Blue collar ... 138.3 | 1428 | 144.4 a) 15 11 27 4.2 44
Construction’ ... 136.9 | 140.8 | 143.2 1.0 15 17 3.2 3.8 46
Manufacturing 140.9 | 146.0 | 147.5 7 17 1.0 27 44 47
White collar 143.0 | 148.2 | 150.2 8 1.6 1.3 28 45 5.0
Excluding sales 141.3 | 146.2 | 148.2 a) 17 1.4 29 44 49
Blue collar .. 139.4 144.4 145.6 6 1.6 8 26 43 44
141.0 146.5 148.3 8 1.7 1.2 26 47 5.2
142.4 151.2 154.3 14 2.9 24 25 76 8.4
White collar .. 139.5 | 146.6 | 150.7 1.6 35 | - 28 18 6.8 8.0
Blue collar 145.7 | 157.8 | 158.5 1.0 22 4 4.0 9.4 8.8
Nondurables 140.4 | 144.9 | 146.0 6 15 8 27 3.8 4.0
Service producing 142.8 | 147.4 | 149.1 1.3 14 12 3.6 46 44
Excluding sales 143.3 | 147.7 | 149.4 11 1.2 1.2 35 42 43
White collar .... 144.3 | 149.3 | 151.0 1.4 1.6 41 3.6 49 46
Excluding sales 145.5 | 150.3 | 152.1 1.2 1.3 1.2 3.5 45 45
Blue collar 137.8 | 141.8 | 143.1 1.2 14 9 3.5 44 3.8
Service 140.5 | 143.6 | 145.1 a) 8B 1.0 35 3.4 3.3
Transportation and public uti 140.9 | 143.9 | 145.7 9 11 1.3 28 3.0 3.4
Transportation3.5 138.1 | 140.4 | 141.8 1.0 6 1.0 24 26 27
Public utilities 144.6 | 148.6 | 150.9 8 17 15 35 3.6 44
Communications .. 144.9 148.4 150.9 41 1.6 17 41 3.6 41
Electric, gas, and sanitary services 144.2 | 148.9 | 151.0 6 19 1.4 28 38 47
Wholesale and retail trade 144.41 145.6 | 147.3 1.6 15 1.2 3.9 48 44
Excluding sales 141.9 | 146.4 | 148.1 1.4 15 1.2 44 46 44
Wholesale trade? 144.6 150.0 151.8 1.3 1.0 1.2 43 5.1 5.0
Excluding sales 144.0 | 149.6 | 151.1 41 15 1.0 42 5.1 49
Retail trade ... 139.1 143.2 | 144.8 W7 18 11 3.5 47 44
General merchandise stores .. 135.6 | 139.7 | 141.0 4 1.0 9 2.0 3.5 40
Food stores’ ... 135.7 | 140.1 142.5 1.0 1.4 17 24 43 5.0
Finance, insurance, and real estate? 145.8 | 152.0 | 153.1 3.0 25 7 5.3 74 5.0
Excluding sales .... 148.8 | 154.2 | 155.5 22 17 8 5.3 5.9 45
Banking, savings and loan, and other

credit agencies? 155.4 | 162.7 | 164.2 44 18 a) 7.0 9.3 5.7
Insurance3 144.0 | 149.9 | 151.3 1.6 28 a 37 5.8 5.1
Excluding sales 145.4 | 149.4 | 150.5 6 1.6 7 3.2 3.4 3.5
Services .. 144.6 | 149.4 | 151.2 8 1.2 1.2 3.4 4. 46
Business services? .. 148.7 | 154.2 | 156.3 8 15 1.4 57 45 5.1
Health services 141.4 | 145.8 | 147.5 6 11 1.2 1.9 3.8 43
Hospitals ... 142.1 145.8 | 147.5 6 8 12 28 3.3 3.8
Nursing homes - - - a) 13 15 3.8 42 48
Educational services 148.7 | 154.0 | 154.9 3 7 & 3.3 3.8 42
Colleges and universities .. 149.6 | 154.6 | 155.5 3 8 6 3.3 3.6 3.9

See footnotes at end of table.


Employment Cost Index

Chart A. Changes in wages and salaries
and benefit costs, private industry

Wages & salaries Benefits

12-month percent change
gr

Chart B. Changes in compensation,
seasonally adjusted and not seasonally
adjusted, private industry

Seasonally adjusted Not seasonally adjusted

3-month percent change
3.5

3
2.5
2
15
1
0.5

FN PS WS We PE OS OW PS OE POET EE BO
0

88 . 90 . 92 . 94 . 96 . 98 . 00

Chart C. Changes in compensation by
occupational group, private industry,
goods-producing industries

White-collar Blue-collar

12-month percent change

Chart D. Changes in compensation by
occupational group, private industry,
service-producing industries

White-collar Blue-collar

12-month percent change

88 . 90 . 92 . 9% . 96 . 98 .

88 . 90 . 92 . 4 . 96 . 98 .

Bureau of Labor Statistics, Office of Compensation Levels and Trends

June 2000 ocltinfo@bls.gov (202) 691-6199



15

Table 8. Employment Cost Index for benefits for civilian, State and local government, and private industry
workers by industry, occupational group, and bargaining status

(Not seasonally adjusted data)
Indexes (June 1989=100) Percent changes for—
Industry, occupational group, and 3 months ended— 12 months ended—
bargaining status June Mar. Jun.
1999 2000 2000 June Mar. Jun. June Mar. Jun.
1999 2000 2000 1999 2000 2000
Civilian workers .... 146.6 | 152.6 | 154.3 0.9 24 a4 25 5.0 5.3
State and local government 144.0 | 148.2 | 148.5 3 1.0 2 26 3.2 3.4
Private industry .. 147.3 | 153.8 | 155.7 1.0 24 1.2 25 55 5.7
Industry
Goods producing! 145.2 | 1523 | 154.2 7 28 42 19 5.6 62
Service producing? .. 1479 | 154.0 | 156.0 12 22 13 29 54 55
Manufacturing 144.5 | 152.3 | 153.9 6 3.0 11 15 6.1 65
Aircraft mani 144.3 | 161.9 | 166.6 12 5.2 29 8 13.5 15.5,
White collar3 142.7 156.8 163.6 1.0 6.2 43 16 11.0 14.6
Blue collar 146.3 | 169.2 | 170.5 15 3.8 8 49 17.3 16.5
Nonmanufacturing 148.0 | 154.0 | 156.1 12 2.2 1.4 28 53 5.5
Occupational group
White collar 149.4 156.3 | 158.5 1.0 25 1.4 26 5.7 61
Blue collar 143.6 150.0 | 151.6 1.0 2.6 11 23 5.5 5.6
Service? .. 147.6 | 150.8 | 152.7 a 6 1.3 27 34 35
Bargaining status
Union . 146.9 153.7 | 155.5 8 27 1.2 22 5.4 5.9
Nonunion 147.1 153.6 | 155.5 1.0 24 1.2 26 5.5 5.7

7 Includes mining, construction, and manufacturing.

Includes transportation, communication, and public _utilties;
wholesale and retail trade; finance, insurance, and real estate; and service
industries.

3 Average standard errors (SE) for the series exceed 0.3 percent for
3-month changes and 0.6 percent for 12-month changes for the five years

ending December 1996. To assist users in ascertaining the reliability of the
series, SEs for estimates in this news release (excluding seasonally
adjusted series) will be available on the  Intemet site
(httpy/stats.bls.gov/ecthome.htm). All series will continue to be published
until further notice.


17

employment counts from the 1980 Census were used as weights. Before June 1986, employment counts from
the 1970 Census were used.

For the series based on bargaining status, region, and area size, employment data are not available. The
employment weights are reallocated within these series each quarter based on the current ECI 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.

Beginning with the March 1990 ECI release, indexes were rebased to June 1989=100. A description of
the rebasing is included in the article "Employment Cost Index Rebased to June 1989," in the April 1990 issue

of the Monthly Labor Review.

Beginning with the December 1990 ECI release, seasonally adjusted data are available for selected ECI
series. Seasonal adjustment removes the effects of events that follow a more or less regular pattern each year.
These adjustments make nonseasonal patterns easier to identify. ECI series are seasonally adjusted using
either direct or composite seasonally adjusted estimates. Industry and occupational series, such as
construction and service occupations, are adjusted directly. More aggregate series, such as civilian or private
industry workers, use composite estimates. The composite estimates could be obtained by aggregating either
the industry or the occupational components, and the results may differ depending on which method is used.
The aggregate seasonally adjusted ECI series are estimated by aggregating the component seasonally adjusted
industry series. The seasonal adjustment factors are recalculated once a year. The March release contains data
reflecting the newly updated seasonal, adjustment factors. The historical data for the last five years are then
revised based on the newly estimated factors. The new seasonal factors for 2000 and the historical listing
containing revised seasonally adjusted indexes are available on the Internet site
(http://stats.bls.zov/ecthome.htm) or upon request. The factors are also published in the summer issue of
Compensation and Working Conditions.

The ECI sample is rotated over approximately five years; this makes it more representative and reduces
respondent burden. The sample is replaced on a cross-area, cross-industry basis and is being integrated with
the Bureau’s National Compensation Survey (NCS). Integrated samples result in an increase in the number of
private industry establishments and occupations in the survey. The NCS-ECI private industry sample will be
completely integrated in 2001.

The costs per hour worked of compensation components, based on March data from the ECI, are
published in a separate news release titled "Employer Costs for Employee Compensation ~ March 2000," and
in an annual bulletin, Employer Costs for Employee Compensation, 1986-99, (Bulletin 2526). A description
of the cost levels data (ECEC) is provided in the article "Analyzing Employers’ Costs for Wages, Salaries, and
Benefits" in the October 1987 issue of the Monthly Labor Review. This article, along with other ECEC
research articles, also appears in the annual bulletin. The cost levels are calculated with current employment
weights, rather than the fixed 1990 weights used in computing the ECI. Therefore, year-to-year changes in the
cost levels usually differ from those in the ECI.

Because the ECI is a sample survey, it is subject to sampling errors. Sampling errors are differences that
occur between the results computed from a sample of observations and those computed from all observations
in the population. The estimates derived from different samples selected using the same sample design may
differ from each other. A measure of the variation among these differing estimates is the standard error. It can
be used to measure the precision with which an estimate from a particular sample approximates the expected
result of all possible samples. The chances are about 68 out of 100 that an estimate from the survey differs
from a complete population figure by less than the standard error: The chances are about 90 out of 100 that
this difference would be less than 1.6 times the standard error. The statements of comparisons appearing in
this publication are significant at a 1.6 standard error level or better, unless otherwise indicated. This means
that for differences cited, the estimated difference is greater than 1.6 times the standard error of the difference.

Because standard errors vary from quarter to quarter, the ECI uses a five-year moving average of
standard errors to evaluate published series. Currently, in the higher level aggregate series, the standard errors
for 3-month changes are generally 0.1 percent or less; for 12-month changes, standard errors are generally 0.25
percent or less. Currently, in the lower level series, standard errors are generally 0.3 percent or less for 3-
month changes and 0.6 percent or less for 12-month changes. Series found to have a higher average standard
error for the five years ending December 1996 are footnoted in the tables.


3

Over-the-year compensation cost increases for nonunion workers were 4.6 percent, higher than the 3.9
percent gain for union workers. Similarly, compensation in service-producing industries increased 4.6 percent
for nonunion workers, higher than the 3.0 percent gain for union workers. In contrast, in goods-producing
industries, the increase for both union and nonunion workers was 4.8 percent. Compensation in blue-collar
occupations rose 4.2 percent for both union and nonunion workers. (See table 4.)

State and local government

In State and local government, the June 2000 over-the-year increase in wages and salaries was 3.7
percent, higher than the 3.1 percent increase in June 1999. Benefit costs for June 2000 increased 3.1 percent.
In June 1999, the increase was 2.6 percent. (See tables 5 and 8.)

NOTES:

The ECI for September 2000 is scheduled to be released Thursday, October 26, 2000, at 8:30 a.m.
(EDT).

This release introduces an expanded definition of nonproduction bonuses designed to improve the ECI’s
representation of the compensation packages offered to employees. In addition to the traditional types of
nonproduction bonuses such as attendance bonuses and lump sum payments, the June ECI includes hiring and
referral bonuses. Hiring bonuses are payments made by the employer to induce an individual to accept
employment; referral bonuses are payments made by the employer for recommending an applicant who is
hired by the establishment. A fact sheet has been prepared with additional information on this change and its
effect on the ECI. This information can be obtained directly from the Internet site

(http://stats.bls.gov/ecthome.htm), by e-mail request (ocltinfo@bls.gov), or by telephone (202) 691-6199.

As part of its ongoing research program, the Bureau of Labor Statistics is currently conducting research
on stock option plans. This research will be completed in stages. BLS has completed the collection of a test
survey to determine the incidence of stock option plans across all industries and occupations. The prevalence
of these plans, based on test results and the potential impact on compensation costs, will determine the next
stage of research. The results of the incidence survey will be published in fall 2000.

ECI data are available on the ECI home page (http://stats.bls.gov/ecthome.htm). To access data using
Anonymous FTP, use the Internet address (ftp://ftp.bls.gov).

For technical assistance in using the BLS Internet site, send e-mail to (Jabstat.helpdesk @bls.gov). For
ECI data requests, send e-mail to (ocltinfo@bls.gov).

The ECI news release is now available through an e-mail subscription service. Please see the
subscription link on (http://stats.bls.gov/ecthome.htm) or (http://stats.bls.gov/newsrels.htm).

News releases and other information are available from the BLS fax-on-demand service. To request a
document fax, call (202) 691-6325. To request a catalog of available documents, select option 2 at the initial
voice prompt. To request data found in this news release, enter the following codes:

Text 4110
Tables 1-4 4115
Tables 5-7 4120
Table 8 4125

Explanatory notes 4190



2 >

The 3-month increase in compensation costs for private industry workers was 1.1 percent during the
March-June 2000 period. The gain in wages and salaries was 1.0 percent in June; in March, it was 1.2 percent.
Benefit costs showed a 3-month rise of 1.2 percent during the June quarter, falling from the 2.3 percent gain
during the March period. (See tables A and 1.) The moderation in benefits was due to smaller increases in
benefit costs across the board.

Compensation costs for State and local government workers increased 0.8 percent during the March-
June 2000 period, unchanged from the previous quarter. Wages and salaries rose 0.8 percent in June,
following a gain of 0.9 percent in March. Benefit costs increased 0.5 percent in the June quarter; in March, the
increase was 1.0 percent.

Qver-the-year changes, not seasonally adjusted

Compensation costs for civilian workers (not seasonally adjusted) increased 4.4 percent for the year
ended in June 2000. This compares with over-the-year increases of 3.2 percent in June 1999 and 3.5 percent in
June 1998. Compensation costs in private industry rose 4.6 percent in the year ended June 2000, following
increases of 3.3 percent in June 1999 and 3.5 percent in June 1998. In State and local government,
compensation costs increased 3.5 percent for the year ended June 2000; over-the-year increases were 3.0
percent in June 1999 and 2.7 percent in June 1998. (See tables B, 2, and 3.)

Nonfarm private industry

In private industry, wages and salaries rose 4.1 percent for the year ended June 2000. Wages and
salaries increased 3.6 percent in June 1999. (See tables B and 6.) Benefit costs for private industry workers
increased 5.7 percent for the year ended in June 2000, a significant increase from 2.5 percent in June 1999.
(See chart A and tables B and 8.) The rise in benefit costs were due, in part, to higher payments for health
insurance, supplemental pay, and paid leave.

In private industry, over-the-year compensation cost increases were 4.9 percent for white-collar
occupations, 4.3 percent for blue-collar occupations, and 3.4 percent for service occupations. Among the
occupational groups, increases in compensation costs ranged from 3.7 percent for transportation and material
moving to 5.4 percent for sales occupations. (See table 3.)

Table B. 12-month percent changes in Employment Cost Index, not seasonally adjusted
June June June June = June June

Compensation Component 1995 1996 _1997 1998 1999 2000
Civilian workers
Compensation costs 2.9 2.9 2.8 3.5 3.2 44
Wages and salaries 3.0 3.2 3.2 3.8 3.6 4.0
Benefit costs 27 1.8 2.0 24 2.5 5.3
Private industry
Compensation costs 2.8 2.9 2.9 3.5 3.3 4.6
Wages and salaries 29 3.4 3.3 4.0 3.6 4.1
Benefit costs 2.6 1.7 2.0 2.6 2.5 5.7
State and local government
Compensation costs 3.1 2.6 24 2.7 3.0 3.5
Wages and salaries 3.2 2.8 2.7 3.0 3.1 3.7
Benefit costs 2.9 2.2 17 2.1 2.6 3.1

For the year ended June 2000, the compensation cost increase was 4.8 percent for goods-producing
industries, compared with 2.7 percent for the year ended June 1999. The over-the-year increase in
compensation costs for service-producing industries was 4.4 percent, compared with an increase of 3.6 percent
for the year ended June 1999. Among industry divisions, June 1999-to-June 2000 increases ranged from 2.7
percent in transportation to 5.7 percent in banking, savings and loan, and other credit agencies. (See table 3.)


13

Table 6. Employment Cost Index for wages and salaries for private industry workers by industry and occupational
group — Continued

(Not seasonally adjusted data)
Indexes (June 1989=100) Percent changes for—
i 3 months ended— 12 months ended-
Industry and occupational group June Mar. Jun.
1999 2000 2000 June Mar. dun, June Mar. Jun.
1999 2000 2000 1999 2000 2000
Industry-Continued
Nonmanufacturing industries . 139.7 143.9 | 145.5 13 1.3 11 3.7 44 42
142.0 | 146.5 | 148.2 “ 1.2 1.2 3.8 46 44
143.2 | 147.4 | 149.1 14 1.0 1.2 3.7 41 41
134.0 | 137.4 | 138.9 12 1.2 Ww 3.5 3.8 37
137.7 | 140.9 | 142.4 a) 1.0 1 3.6 3.2 34
Occupational group
White collar .... 142.1 146.6 | 148.3 1.3 1.2 1.2 3.7 45 44
Excluding sale: 142.5 146.7 148.5 14 1.0 1.2 3.6 40 42
Professional specialty and technical .. 141.8 145.1 147.3 8 7 15 3.4 34 3.9
Executive, administrative, and manage 149.2 | 150.7 17 Ww 1.0 4.0 5.1 44
Sales? 140.5 146.7 | 147.9 2.3 24 8 3.9 68 5.3
Administrative support, including
clerical .... 141.4 146.0 | 147.5 7 15 1.0 3.4 40 43
Blue collar ... 135.6 139.1 140.5 1.0 1.0 1.0 3.3 36 36
Precision production, craft, and repail 135.6 138.9 | 140.6 1.0 1.0 1.2 3.4 34 37
Machine operators, assemblers, and
inspectors .. 140.7 | 141.6 7 9 6 3.0 37 3.6
Transportation and material moving .. 131.0 134.1 135.2 15 Ww 3.6 3.9 3.2
Handlers, equipment cleaners, helpers, and
laborers ... | 138.3 144.8 143.6 7 1.0 1.3 34 3.3 3.8
Service .. 137.8 141.0 142.5 8 1.0 1 3.6 3.4 3.4
Production and nonsupervisory
occupations ... 138.2 142.1 143.7 1.0 1.2 Ww 34 3.9 4.0
7 includes mining, construction, and manufacturing. and retail trade; finance, insurance, and real estate; and service industries.
2 Average standard errors (SE) for the series exceed 0.3 percent for 4 Estimates for transportation and public utilities reflect the changes in
3-month changes and 0.6 percent for 12-month changes for the five years ‘SIG.coding. See Explanatory Notes for further information.
ending December 1996. To assist users in ascertaining the reliability of the 5 This series has the same industry and occupational coverage as the

series, SEs for estimates in this news release (excluding seasonally adjusted Hourly Eamings Index, which was discontinued in January 1989.
series) will be available on the Internet site (http://stats.bls.gov/ecthome.htm).
All series will continue to be published until further notice.
Includes transportation, communication, and public utilities; wholesale NOTE: Dashes indicate data not available.


16

EXPLANATORY NOTES

The Employment Cost Index (ECI) is a measure of the change in the cost of labor, free from the
influence of employment shifts among occupations and industries. The compensation series includes changes'
in wages and salaries and employer costs for employee benefits. The wage and salary series and the benefit
cost series provide the change for the two components of compensation.

Wages and salaries are defined as the hourly straight-time wage rate or, for workers not paid on an
hourly basis, straight-time earnings divided by the corresponding hours. Straight-time wage and salary rates
are total earnings before payroll deductions, excluding premium pay for overtime and for work on weekends
and holidays, shift differentials, and nonproduction bonuses such as lump-sum payments provided in lieu of
wage increases. Production bonuses, incentive earnings, commission payments, and cost-of-living
adjustments are included in straight-time wage and salary rates.

Benefits covered by the ECI are: Paid leave--vacations, holidays, sick leave, and other leave;
supplemental pay--premium pay for work in addition to the regular work schedule (such as overtime,
weekends, and holidays), shift differentials, and nonproduction bonuses (such as lump-sum payments provided
in lieu of wage increases and referral bonuses); insurance benefits--life, health, short-term disability, and long-
term disability; retirement and savings benefits--defined benefit and defined contribution plans; legally
required benefits--social security, Federal and State unemployment insurance, and workers' compensation; and
other benefits--severance pay and supplemental unemployment plans.

The June 2000 ECI includes an expanded definition of nonproduction bonuses designed to improve
representation of compensation packages offered to employees. In addition to the traditional types of
nonproduction bonuses such as attendance bonuses and lump sum payments, the June ECI includes hiring and
referral bonuses. A fact sheet has been prepared with additional information on this change and its effect on
the ECI. See page 3 for more detailed information.

The ECI provides data for the civilian economy, which includes the total private nonfarm economy
excluding households and the public sector excluding the Federal government. The private industry series and
the State and local government series provide data for the two sectors separately.

Data for this quarter were collected from a probability sample of approximately 25,100 occupational
observations within about 6,000 sample establishments in private industry and approximately 4,000
occupations within about 800 sample establishments in State and local governments. Data are collected for
the pay period including the 12" day of the survey months of March, June, September, and December.

The sampled establishments are classified by industry categories based on the 1987 Standard Industrial
Classification (SIC), as defined by the U.S. Office of Management and Budget. In 1996, some establishments
in motor freight transportation and warehousing (SIC 42), transportation by air (SIC 45), and transportation
services (SIC 47) were reclassified into air courier services (SIC 4513), which includes support
establishments. While the establishments in question were engaged in the delivery of letters, parcels, and
packages, they were operated by enterprises engaged in furnishing air delivery of individually addressed
letters, parcels, and packages. The ECI sample introduced these reclassifications with the June 1998 reference
period.

Within an establishment, specific job categories are selected to represent broader occupational groups.
Since March 1995, the jobs are classified according to the 1990 Census, which differs little from the 1980
Census. From June 1986 through December 1994, the jobs were classified according to definitions used in the
1980 Census. Prior to June 1986, they were classified according to the 1970 Census. Differences between the
two classification systems are slight, as indicated in the article "Introducing new weights for the Employment
Cost Index," in the June 1985 issue of the Monthly Labor Review.

Fixed employment weights are used each quarter to calculate the most aggregate indexes--civilian,
private, and State and local government. These fixed weights are also used to derive all of the industry and
occupation series indexes. Since March 1995, 1990 employment counts, primarily from the Bureau's
Occupational Employment Statistics survey, have been used. A description of the reweighting is included in
an article "Introducing 1990 Weights for the Employment Cost Index," published in the June 1995 issue of
Compensation and Working Conditions, (available upon request). From June 1986 through December 1994,