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      http://www.bls.gov/ncs/ect/home.htm    THURSDAY, JANUARY 29, 2004


                    EMPLOYMENT COST INDEX-DECEMBER 2003

     Total compensation costs for civilian workers rose 0.7 percent from
 September to December 2003, seasonally adjusted, moderating from the 1.0
 percent gain from June to September, the Bureau of Labor Statistics of the
 U.S. Department of Labor reported today.  Benefit costs increased 1.2
 percent and continued to strongly outpace the gain in wages and salaries
 for civilian workers, 0.5 percent.  The Employment Cost Index (ECI), a
 component of the National Compensation Survey, measures quarterly changes
 in compensation costs, which include wages, salaries, and employer costs
 for employee benefits for nonfarm private and State and local government
 workers.

     Although contributing only 30 percent of total compensation costs,
 about half of the increase in compensation costs was attributable to rises
 in benefit costs during the September to December 2003 period.  Among
 State and local government workers, benefit costs accounted for 53 percent
 of compensation gains during the quarter, with health insurance and
 defined benefit retirement costs accounting for nearly three-quarters of
 the rise in State and local government benefit costs.  Among private
 industry workers, the pattern of compensation gains was similar, with
 benefit costs attributing 51 percent of compensation gains during the
 September to December period.  Health insurance and defined benefit
 retirement contributions accounted for approximately three-fifths of the
 gain in benefit costs.

 Quarterly changes, seasonally adjusted

     Compensation costs for both private sector and State and local
 government workers rose 0.7 percent from September to December.  For State
 and local government workers, the increase in compensation costs was the
 same as in the prior quarter, while the gain for private sector workers
 had been 1.0 percent in September.  December gains in private sector
 compensation costs were led by increases in retail trade and services,
 while private sector compensation gains were less in wholesale trade and
 in finance, insurance, and real estate.  (See tables A and 1.)

     Benefit costs advanced 1.2 percent for civilian workers (nonfarm
 private industry and State and local government) in the December 2003
 quarter, following a gain of 1.5 percent in the September quarter.
 Private sector benefit costs rose 1.2 percent for the December quarter,
 following a 1.4 percent gain in the previous quarter.  Benefit increases
 for State and local governments slowed to 1.1 percent in the December
 quarter, following a jump of 2.0 percent in September 2003.

     Wages and salaries for civilian, private, and State and local workers
 all advanced 0.5 percent during the December quarter.  This increase was
 lower than the 0.9 percent increase in private industry wages and salaries
 over the previous quarter.  In contrast, in State and local government,
 this increase was higher compared with the modest 0.1 change during the
 prior quarter.  Private sector wage gains were led by service-producing
 industries, especially retail trade and services.  Increases in wages and
 salaries in the private sector were slowed by durable manufacturing and
 finance, insurance, and real estate industries.

 Table A.  3-month percent changes in Employment Cost Index, seasonally
 adjusted
                          Mar.  June  Sep.  Dec.  Mar.  June   Sep.  Dec.
 Compensation Component   2002  2002  2002  2002  2003  2003   2003  2003
         Civilian workers
 Compensation costs       0.9    1.0   0.8   0.7   1.3   0.9    1.0   0.7
   Wages and salaries     0.8    0.9   0.6   0.5   1.0   0.6    0.7   0.5
   Benefit costs          1.0    1.3   1.2   1.3   2.2   1.4    1.5   1.2
         Private industry
 Compensation costs       0.9    1.1   0.6   0.7   1.4   0.8    1.0   0.7
   Wages and salaries     0.9    0.9   0.4   0.5   1.0   0.6    0.9   0.5
   Benefit costs          1.1    1.3   1.1   1.2   2.4   1.3    1.4   1.2
         State and local government
 Compensation costs       0.8    0.9   1.3   1.0   0.9   1.0    0.7   0.7
   Wages and salaries     0.8    0.8   0.8   0.7   0.7   0.8    0.1   0.5
   Benefit costs          1.0    1.1   2.2   1.7   1.5   1.3    2.0   1.1

 Over-the-year changes, not seasonally adjusted

     Annual compensation costs for civilian workers (not seasonally
 adjusted) increased 3.8 percent for the year ended December 2003, compared
 with a 3.4 percent over-the-year increase for December 2002.  Compensation
 costs in private industry rose 4.0 percent in the year ended December
 2003, higher than the more modest increase of 3.2 percent in December
 2002.  In contrast, compensation costs slowed to  a 3.3 percent increase
 for State and local government for the year ended December 2003, compared
 with an over-the-year gain of 4.1 percent in December 2002.  (See tables
 B, 2, and 3.)

     The components of compensation continued to show significant
 differences.  While increases in wages and salaries slowed, benefit costs
 rose sharply during the year ended December 2003.  For private industry
 workers, wages and salaries rose 3.0 percent in the year ended December
 2003, compared with a gain of 6.4 percent for benefits.  Wages and
 salaries rose a modest 2.1 percent for State and local government workers,
 while benefits increased 6.1 percent for the year ended December 2003.
 (See tables B, 5, 6, and 8.)

 Table B. 12-month percent changes in Employment Cost Index, not seasonally
 adjusted
                         Dec.  Dec.  Dec.  Dec.  Dec.  Dec.
 Compensation Component  1998  1999  2000  2001  2002  2003
         Civilian workers
 Compensation costs      3.4    3.4   4.1   4.1   3.4   3.8
   Wages and salaries    3.7    3.5   3.8   3.7   2.9   2.9
   Benefit costs         2.6    3.3   4.9   5.2   5.0   6.3
         Private industry
 Compensation costs      3.5    3.4   4.4   4.2   3.2   4.0
   Wages and salaries    3.9    3.5   3.9   3.8   2.7   3.0
   Benefit costs         2.4    3.4   5.6   5.1   4.7   6.4
         State and local government
 Compensation costs      3.0    3.4   3.0   4.2   4.1   3.3
   Wages and salaries    3.1    3.6   3.3   3.6   3.2   2.1
   Benefit costs         3.0    2.8   2.4   5.5   6.2   6.1


     Nonfarm private industry

     For the year ended December 2003, compensation costs in private
 industry increased 4.0 percent for goods-producing industries, compared
 with the 3.7 percent advance for the year ended December 2002.
 Compensation costs for manufacturing advanced 4.1 percent in December
 2003, after increasing 3.8 percent in December 2002.  Compensation costs
 for construction rose 3.4 percent in December 2003, compared with a 3.2
 percent rise in December 2002.  (See table 3.)

     The over-the-year increase in compensation for service-producing
 industries was 4.0 percent, compared with the 3.1 percent gain for the
 year ended December 2002.  Among service-producing industries, the 12-
 month increase for finance, insurance, and real estate was 7.4 percent for
 the year ended in December 2003, led by a large increase in banking,
 savings and loan, and other credit agencies.  Compensation costs rose
 modestly in wholesale trade, increasing 3.2 percent in the year ended
 December 2003.

     Over-the-year compensation cost increases were 4.1 percent for white-
 collar occupations, 4.0 percent for blue-collar occupations, and 3.2
 percent for service occupations for the year ended December 2003.  Among
 white-collar occupational groups, compensation changes ranged from 3.2 for
 sales workers to 5.2 percent for executive, administrative, and managerial
 employees.  Among blue-collar workers, compensation cost increases ranged
 from 3.4 percent for transportation and material moving workers to 4.1
 percent for the remaining three blue-collar occupational groups.  (See
 table 3.)

     Compensation costs for union workers advanced 4.6 percent over the
 year ended December 2003, compared with a 3.9 percent increase for
 nonunion workers.  Compensation costs among blue-collar union workers rose
 4.9 percent, higher than the gain of 3.5 percent for blue-collar nonunion
 workers.  In goods-producing industries, a 5.1 percent increase for union
 workers was greater than the 3.7 percent advance for nonunion workers.
 (See tables C and 4.)

     Wages and salaries for union workers rose a modest 2.4 percent for the
 12 months ended in December 2003.  This compares with an over-the-year
 increase of 3.1 percent for nonunion workers.  In contrast, benefit costs
 for union workers rose sharply, 8.3 percent, greater than the increase of
 6.0 percent for nonunion workers in December 2003.  (See tables C, 7, and
 8.)

 Table C. 12-month percent changes in Employment Cost Index, not seasonally
 adjusted
                         Dec.  Dec.  Dec.  Dec.  Dec.  Dec.
 Compensation Component  1998  1999  2000  2001  2002  2003
         Union workers
 Compensation costs      3.0    2.7   4.0   4.2   4.2   4.6
   Wages and salaries    3.3    2.6   3.4   4.4   3.5   2.4
   Benefit costs         2.5    2.8   5.2   3.7   5.7   8.3
      Nonunion workers
 Compensation costs      3.5    3.6   4.4   4.1   3.2   3.9
   Wages and salaries    4.0    3.6   4.0   3.6   2.7   3.1
   Benefit costs         2.4    3.5   5.7   5.4   4.5   6.0

     Among the four geographic regions, increases in compensation costs
 ranged from 3.1 percent in the South to 4.8 percent in the Midwest.
 Compensation costs rose 4.1 percent in the Northeast and 4.4 percent in
 the West.  (See table 4.)

     State and local government

     Employer costs for wages and salaries among State and local government
 workers rose 2.1 percent for the year ended December 2003.  Wage and
 salary increases for State and local government workers for years ending
 from December 1982 through December 2002 ranged from 2.7 percent in
 December 1993 and December 1997 to 6.6 percent in December 1982.  Benefit
 costs rose 6.1 percent for the year ended December 2003.  Benefit
 increases from December 1992 through December 2002 ranged from 1.3 percent
 in December 1997 to 6.2 percent in December 2002.

     For the year ended December 2003, compensation costs increased 2.9
 percent for educational services, slowing from the 3.8 percent gain for
 the year ended December 2002.  Compensation cost gains moderated for
 health services, rising 3.3 percent for the year ended December 2003
 compared with a 4.4 percent rise for the year ended December 2002.  Among
 occupational groups, compensation costs of service workers rose 4.0
 percent for the year ended December 2003, compared with gains of 3.4
 percent for blue-collar workers and 3.1 percent for white-collar workers.
 (See tables B, 5, and 8.)

 __________________________________________________________________________

                                  NOTES:

     The new seasonal factors for 2004, along with revised seasonally
 adjusted indexes for the past five years will be available Tuesday, April
 27, 2004, on the Internet site http://www.bls.gov/ncs/ect/home.htm, by e-
 mail request ocltinfo@bls.gov, or by telephone (202) 691-6199.  The ECI
 for March 2004 is scheduled to be released Thursday, April 29, 2004, at
 8:30 a.m. (EDT).

     Supplemental data from the ECI, providing 12-month percent changes in
 employer costs for health insurance in private industry from June 1982 to
 December 2003, will be available shortly after publication of this news
 release on the Internet site http://www.bls.gov/ect/home.htm or upon
 request.

     The costs per hour worked of compensation components, based on data
 from the ECI, were published on November 25, 2003, in a news release
 titled "Employer Costs for Employee Compensation-September 2003."

     ECI data are available on the Compensation Cost Trends page at
 http://www.bls.gov/ncs/ect/home.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 webmaster@bls.gov.  For ECI data requests, send e-mail to
 ocltinfo@bls.gov.

     The ECI news release is available through an e-mail subscription
 service.  See the subscription link on http://www.bls.gov/ncs/ect/home.htm
 or http://www.bls.gov/bls/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
 __________________________________________________________________________



Table 1.  Employment Cost Index for total compensation(1), 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

                                              Sep.    Dec.    Mar.    Jun.    Sep.    Dec.    Mar.    Jun.    Sep.    Dec.
                                              2003    2003    2002    2002    2002    2002    2003    2003    2003    2003


            TOTAL COMPENSATION

Civilian workers...........................  167.5   168.7     0.9     1.0     0.8     0.7     1.3     0.9     1.0     0.7
 State and local government................  165.3   166.4      .8      .9     1.3     1.0      .9     1.0      .7      .7
 Private industry..........................  168.0   169.2      .9     1.1      .6      .7     1.4      .8     1.0      .7

                 Industry

   Goods producing(2)......................  166.2   167.1     1.0     1.0      .8     1.0     1.6     1.0      .9      .5
     Construction..........................  162.3   163.3      .7      .6      .8     1.0      .8     1.1      .8      .6
     Manufacturing.........................  166.5   167.4     1.0     1.0      .8     1.1     1.8      .9      .8      .5
       Durables............................  166.7   167.5      .8      .8      .6     1.1     2.2      .6      .8      .5
       Nondurables.........................  166.1   167.2     1.2     1.2     1.2     1.0     1.1     1.4      .8      .7

   Service producing(3)....................  168.8   170.2      .9     1.1      .6      .6     1.2      .8     1.1      .8
     Transportation and public utilities...  166.3   167.3     1.0     1.0     1.1      .9      .7     1.3      .6      .6
     Wholesale trade.......................  172.0   172.3     1.6     2.2      .1      .7     1.7      .5      .8      .2
     Retail trade..........................  159.8   161.7     -.3     1.3      .4      .4     -.1      .4     1.7     1.2
     Finance, insurance, and real
      estate(4)............................  180.2   180.9     2.4     1.3      .4      .3     4.9      .9     1.1      .4
     Services..............................  170.2   171.7      .9      .7      .6      .6      .8      .8     1.1      .9

   Nonmanufacturing........................  168.0   169.4      .8     1.1      .6      .6     1.2      .8     1.1      .8

            Occupational group

   White collar............................  171.1   172.5      .8     1.1      .6      .7     1.4      .7     1.2      .8
   Blue collar.............................  162.7   163.9      .9      .8      .8      .9     1.3      .9      .9      .7
   Service.................................  163.8   164.9     1.0      .7     1.0      .6     1.2      .7      .7      .7



            WAGES AND SALARIES

Civilian workers...........................  161.5   162.3      .8      .9      .6      .5     1.0      .6      .7      .5
 State and local government................  160.7   161.5      .8      .8      .8      .7      .7      .8      .1      .5
 Private industry..........................  161.7   162.5      .9      .9      .4      .5     1.0      .6      .9      .5

                 Industry

   Goods producing(2)(4)...................  158.3   158.7      .8      .9      .5      .7      .8      .7      .6      .3
     Construction..........................  153.6   154.1      .5      .6      .7      .9      .3     1.0      .9      .3
     Manufacturing(4)......................  159.7   160.1      .9      .9      .6      .7     1.0      .6      .4      .3
       Durables(4).........................  160.6   160.9     0.9     0.9     0.5     0.8     1.0     0.6     0.6     0.2
       Nondurables.........................  158.3   159.1      .8      .9      .9      .8      .5      .8      .4      .5

   Service producing(3)....................  163.2   164.2      .9      .9      .5      .4     1.1      .6     1.1      .6
     Transportation and public
      utilities(4).........................  156.0   156.5      .9     1.1      .9      .5      .5      .5      .3      .3
     Wholesale trade.......................  165.0   165.6     1.7     1.7      .1      .4     1.6     -.1      .8      .4
     Retail trade..........................  156.2   157.1     -.4     1.1      .3      .3     -.3      .4     1.8      .6
     Finance, insurance, and real
      estate(4)............................  174.1   174.5     2.8     1.1      .2      .1     5.2      .8     1.0      .2
     Services..............................  165.7   166.9      .8      .6      .6      .4      .6      .8     1.0      .7

   Nonmanufacturing........................  162.0   162.9      .8      .8      .5      .4     1.0      .6     1.1      .6
WAGES AND SALARIES-Continued

            Occupational group

   White collar............................  165.2   166.2     0.8     0.9     0.5     0.5     1.2     0.6     1.0     0.6
   Blue collar(4)..........................  155.6   156.1      .9      .9      .5      .5      .8      .7      .6      .3
   Service(4)..............................  157.1   157.8      .9      .5      .7      .4      .6      .4      .6      .4



               BENEFIT COSTS

Civilian workers...........................  182.3   184.5     1.0     1.3     1.2     1.3     2.2     1.4     1.5     1.2
 State and local government................  176.2   178.1     1.0     1.1     2.2     1.7     1.5     1.3     2.0     1.1
 Private industry..........................  183.8   186.0     1.1     1.3     1.1     1.2     2.4     1.3     1.4     1.2

                 Industry

   Goods producing(2)......................  182.6   184.4     1.2     1.2     1.2     1.5     3.4     1.4     1.5     1.0
     Manufacturing.........................  181.5   182.9     1.4     1.2     1.3     1.4     4.0     1.3     1.6      .8

   Service producing(3)....................  184.5   186.9      .9     1.5     1.0     1.0     1.8     1.3     1.4     1.3

   Nonmanufacturing........................  184.9   187.3     1.0     1.3     1.0     1.1     1.9     1.3     1.3     1.3

            Occupational group

   White collar............................  187.7   189.9      .8     1.4      .9     1.1     2.3     1.0     1.4     1.2
   Blue collar.............................  178.3   180.4     1.4     1.2     1.3     1.3     2.5     2.1     1.3     1.2
   Service.................................  184.1   186.6     1.4     1.1     1.7     1.0     2.7     1.3     1.0     1.4

  1 Includes wages, salaries, and employer costs for employee benefits.
  2 Includes mining, construction, and manufacturing.
  3 Includes transportation, communication, and public utilities; wholesale and retail trade; finance, insurance, and real
estate; and service industries.
  4 No identifiable seasonality was found for this series.



Table 2.  Employment Cost Index for total compensation(1) for civilian and State and local government workers by
industry and occupational group

(Not seasonally adjusted data)


                                           Indexes (June 1989=100)               Percent changes for-


     Industry and occupational group                                   3 months ended-         12 months ended-
                                             Dec.    Sep.    Dec.
                                             2002    2003    2003
                                                                     Dec.    Sep.    Dec.    Dec.    Sep.    Dec.
                                                                     2002    2003    2003    2002    2003    2003

Civilian workers..........................  162.2   167.6   168.4     0.6     1.1     0.5     3.4     3.9     3.8
    Excluding sales occupations...........  162.2   167.7   168.6      .6     1.1      .5     3.4     4.0     3.9

                 Industry

  Goods producing(2)......................  160.2   165.8   166.6      .9      .7      .5     3.8     4.5     4.0
    Manufacturing.........................  160.5   166.5   167.1      .9      .7      .4     3.8     4.7     4.1
  Service producing(3)....................  162.8   168.2   169.1      .4     1.2      .5     3.3     3.7     3.9
    Services..............................  163.9   168.5   169.5      .4     1.3      .6     3.1     3.2     3.4
      Health services.....................  164.5   169.3   170.7      .9     1.0      .8     3.9     3.8     3.8
        Hospitals.........................  167.6   173.1   174.8     1.1     1.3     1.0     4.8     4.5     4.3
      Educational services................  162.8   166.9   167.6      .7     1.6      .4     4.0     3.3     2.9
    Public administration(4)..............  161.7   167.3   168.1      .9     1.8      .5     4.2     4.4     4.0

  Nonmanufacturing........................  162.4   167.8   168.6      .4     1.2      .5     3.3     3.8     3.8

            Occupational group

  White collar............................  164.3   169.9   170.7      .5     1.2      .5     3.4     3.9     3.9
      Excluding sales.....................  164.6   170.3   171.1      .5     1.2      .5     3.4     4.0     3.9
    Professional specialty and
     technical............................  162.4   167.0   168.0      .6     1.2      .6     3.1     3.5     3.4
    Executive, administrative, and
     managerial...........................  166.7   174.0   174.9      .2     1.2      .5     3.4     4.6     4.9
    Administrative support, including
     clerical.............................  166.1   171.7   172.5      .7     1.0      .5     3.8     4.1     3.9
  Blue collar.............................  157.5   162.9   163.7      .7      .9      .5     3.6     4.2     3.9
  Service.................................  162.2   166.8   167.9      .6     1.1      .7     3.4     3.4     3.5


State and local government................  161.5   165.9   166.8      .9     1.7      .5     4.1     3.6     3.3

                 Industry

    Services..............................  160.9   164.9   165.7      .8     1.6      .5     3.9     3.3     3.0
        Excluding schools.................  162.8   166.8   168.2     1.1     1.6      .8     4.3     3.6     3.3
      Health services.....................  165.5   169.5   171.0     1.2     1.7      .9     4.4     3.7     3.3
        Hospitals.........................  166.2   170.3   171.4     1.3     1.8      .6     4.5     3.8     3.1
      Educational services................  160.3   164.3   165.0      .7     1.6      .4     3.8     3.2     2.9
        Schools...........................  160.7   164.7   165.3      .7     1.7      .4     3.8     3.2     2.9
          Elementary and secondary........  158.8   163.0   163.7      .7     1.9      .4     3.7     3.4     3.1
          Colleges and universities.......  165.8   169.2   170.0      .7     1.0      .5     3.9     2.7     2.5
    Public administration(4)..............  161.7   167.3   168.1     0.9     1.8     0.5     4.2     4.4     4.0

            Occupational group

  White collar............................  160.7   164.9   165.7      .9     1.7      .5     4.1     3.5     3.1
    Professional specialty and
     technical............................  159.4   163.4   164.1      .8     1.6      .4     4.0     3.4     2.9
    Executive, administrative, and
     managerial...........................  163.8   168.0   169.1      .9     1.4      .7     3.9     3.5     3.2
    Administrative support, including
     clerical.............................  162.4   167.9   168.5      .9     2.1      .4     4.4     4.3     3.8
  Blue collar.............................  159.8   163.6   165.2      .9     1.2     1.0     4.3     3.3     3.4
  Service.................................  166.3   172.0   173.0      .7     1.8      .6     3.6     4.1     4.0

  1 Includes wages, salaries, and employer costs for employee benefits.
  2 Includes mining, construction, and manufacturing.
  3 Includes transportation, communication, and public utilities; wholesale and retail trade; finance, insurance,
and real estate; service industries; and public administration.
  4 Includes executive, legislative, judicial, administrative, and regulatory activities of State and local
governments, SICs 91 through 96.



Table 3.  Employment Cost Index for total compensation(1) for private industry workers, by industry and
occupational group

(Not seasonally adjusted data)


                                           Indexes (June 1989=100)               Percent changes for-


     Industry and occupational group                                   3 months ended-         12 months ended-
                                             Dec.    Sep.    Dec.
                                             2002    2003    2003
                                                                     Dec.    Sep.    Dec.    Dec.    Sep.    Dec.
                                                                     2002    2003    2003    2002    2003    2003

Private industry workers..................  162.3   168.1   168.8     0.4     1.0     0.4     3.2     4.0     4.0
    Excluding sales occupations...........  162.4   168.1   169.0      .5      .9      .5     3.3     4.0     4.1

                 Industry

  Goods producing(2)......................  160.1   165.7   166.5      .9      .7      .5     3.7     4.5     4.0
      Excluding sales.....................  159.2   165.0   165.9      .8      .7      .5     3.6     4.5     4.2
    White collar..........................  164.3   170.1   170.5      .9      .5      .2     3.9     4.4     3.8
      Excluding sales.....................  162.3   168.5   169.2      .7      .6      .4     3.7     4.6     4.3
    Blue collar...........................  157.3   162.9   163.9      .9      .9      .6     3.6     4.5     4.2

    Construction..........................  157.9   162.3   163.3     1.0      .7      .6     3.2     3.8     3.4

    Manufacturing.........................  160.5   166.5   167.1      .9      .7      .4     3.8     4.7     4.1
      White collar........................  163.3   169.5   169.6      .7      .5      .1     4.1     4.5     3.9
        Excluding sales...................  160.7   167.4   167.8      .7      .6      .2     3.9     4.9     4.4
      Blue collar.........................  158.3   164.1   165.1     1.0      .8      .6     3.7     4.7     4.3
      Durables............................  160.6   166.6   167.3     1.1      .7      .4     3.4     4.8     4.2
        Aircraft manufacturing (SIC
         3721)............................  172.3   184.4   182.1     2.1      .4    -1.2     5.4     9.2     5.7
          White collar....................  165.3   177.5   177.0     1.0      .1     -.3     4.0     8.4     7.1
          Blue collar.....................  182.3   193.9   188.4     3.9      .8    -2.8     7.8    10.5     3.3
      Nondurables.........................  160.3   166.0   166.6      .7      .7      .4     4.6     4.3     3.9


  Service producing(3)....................  163.1   168.8   169.7      .2     1.1      .5     3.1     3.7     4.0
      Excluding sales.....................  164.0   169.7   170.6      .3     1.0      .5     3.1     3.8     4.0
    White collar..........................  165.1   171.2   172.0      .2     1.2      .5     3.0     3.9     4.2
      Excluding sales.....................  167.0   173.1   174.2      .3     1.1      .6     3.0     4.0     4.3
    Blue collar...........................  156.9   162.2   162.6      .2      .9      .2     3.6     3.6     3.6
    Service...............................  159.3   163.2   164.3      .5      .7      .7     3.3     3.0     3.1

    Transportation and public utilities...  161.7   166.5   167.0      .6      .7      .3     4.0     3.5     3.3
      Transportation......................  156.1   159.4   159.6      .5      .3      .1     3.3     2.6     2.2
      Public utilities....................  169.2   176.4   177.0      .6     1.3      .3     4.8     4.9     4.6
        Communications....................  170.1   178.4   179.0      .7     1.7      .3     4.1     5.6     5.2
        Electric, gas, and sanitary
         services.........................  168.1   173.8   174.6      .5      .7      .5     5.7     3.9     3.9

    Wholesale and retail trade............  159.7   164.3   165.0      .1     1.1      .4     2.7     2.9     3.3
        Excluding sales...................  160.4   165.0   165.9      .1     1.4      .5     2.1     2.9     3.4
      Wholesale trade.....................  166.7   172.0   172.0      .5      .4      .0     4.5     3.7     3.2
        Excluding sales...................  167.2   171.2   171.3     0.7     0.8     0.1     4.1     3.1     2.5
      Retail trade........................  155.8   159.9   161.0     -.1     1.6      .7     1.7     2.5     3.3
        General merchandise stores........  155.1   161.2   165.6     -.6     1.3     2.7     2.8     3.3     6.8
        Food stores.......................  156.3   159.3   160.3      .0      .4      .6     3.0     1.9     2.6

    Finance, insurance, and real estate...  168.5   180.2   180.9      .3     1.1      .4     4.5     7.3     7.4
        Excluding sales...................  173.1   185.3   186.1      .6      .7      .4     4.9     7.7     7.5
      Banking, savings and loan, and other
       credit agencies....................  185.3   207.6   209.0      .4      .6      .7     6.3    12.5    12.8
      Insurance...........................  167.9   175.1   176.2      .5      .7      .6     4.1     4.8     4.9
        Excluding sales...................  165.7   172.8   173.7      .4      .6      .5     4.0     4.7     4.8

    Services..............................  165.4   170.4   171.4      .3     1.2      .6     2.7     3.3     3.6
      Business services...................  167.5   171.9   172.6      .2     1.6      .4      .8     2.8     3.0
      Health services.....................  164.4   169.4   170.8      .7      .9      .8     3.8     3.8     3.9
        Hospitals.........................  168.1   173.9   175.9     1.1     1.2     1.2     4.9     4.6     4.6
        Nursing homes.....................    -       -       -        .8      .8      .6     4.0     3.6     3.4
      Educational services................  175.2   180.2   181.3     1.0     1.8      .6     4.5     3.9     3.5
        Colleges and universities.........  173.7   178.4   179.4     1.0     1.7      .6     3.7     3.7     3.3
Industry-Continued

  Nonmanufacturing industries.............  162.5   168.1   169.0     0.3     1.0     0.5     3.1     3.8     4.0
    White collar..........................  165.3   171.2   172.1      .3     1.1      .5     3.0     3.9     4.1
      Excluding sales.....................  167.1   173.2   174.2      .3     1.1      .6     3.0     4.0     4.2
    Blue collar...........................  155.9   161.1   161.7      .3      .9      .4     3.5     3.7     3.7
    Service...............................  159.2   163.2   164.2      .5      .7      .6     3.3     3.0     3.1

            Occupational group

  White collar............................  165.2   171.2   172.0      .4     1.1      .5     3.2     4.0     4.1
      Excluding sales.....................  165.9   172.1   173.0      .4     1.0      .5     3.1     4.1     4.3
    Professional specialty and
     technical............................  164.4   169.4   170.5      .5     1.0      .6     2.6     3.5     3.7
    Executive, administrative, and
     managerial...........................  167.2   175.0   175.9      .1     1.1      .5     3.3     4.8     5.2
    Sales.................................  161.9   167.2   167.1      .2     1.3     -.1     3.3     3.5     3.2
    Administrative support, including
     clerical.............................  166.7   172.3   173.1      .7      .8      .5     3.7     4.0     3.8

  Blue collar.............................  157.3   162.8   163.6      .6      .9      .5     3.6     4.2     4.0
    Precision production, craft, and
     repair...............................  157.8   163.1   164.2      .6      .7      .7     3.5     4.0     4.1
    Machine operators, assemblers, and
     inspectors...........................  156.7   162.6   163.2      .8      .9      .4     3.4     4.6     4.1
    Transportation and material moving....  151.8   156.7   156.9      .5     1.0      .1     3.8     3.8     3.4
    Handlers, equipment cleaners, helpers,
     and laborers.........................  162.9   168.6   169.5      .9     1.1      .5     4.1     4.5     4.1

  Service.................................  159.8   163.8   164.9      .5      .7      .7     3.2     3.0     3.2

  Production and nonsupervisory
   occupations(4).........................  160.5   165.7   166.6      .5     1.0      .5     3.2     3.8     3.8

  1 Includes wages, salaries, and employer costs for employee benefits.
  2 Includes mining, construction, and manufacturing.
  3 Includes transportation, communication, and public utilities; wholesale and retail trade; finance, insurance,
and real estate; and service industries.
  4 This series has the same industry and occupational coverage as the Hourly Earnings Index, which was
discontinued in January 1989.

  NOTE:  Dashes indicate data not available.



Table 4.  Employment Cost Index for total compensation(1) 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                                 3 months ended-         12 months ended-
                                             Dec.    Sep.    Dec.
                                             2002    2003    2003
                                                                     Dec.    Sep.    Dec.    Dec.    Sep.    Dec.
                                                                     2002    2003    2003    2002    2003    2003


            Bargaining status

Union.....................................  159.5   165.7   166.8     0.9     1.0     0.7     4.2     4.8     4.6
    Blue-collar occupations...............  156.6   163.1   164.2      .9     1.1      .7     4.4     5.1     4.9

  Goods-producing industries(2)...........  157.8   164.7   165.9     1.0      .8      .7     4.0     5.4     5.1
  Service-producing industries(3).........  161.1   166.5   167.5      .8     1.2      .6     4.5     4.1     4.0

  Manufacturing...........................  157.9   165.0   166.3     1.3      .7      .8     4.3     5.8     5.3
    Blue-collar occupations...............  157.0   163.7   165.1     1.3      .7      .9     4.0     5.6     5.2
  Nonmanufacturing........................  159.9   165.5   166.5      .7     1.1      .6     4.2     4.2     4.1

Nonunion..................................  162.8   168.4   169.1      .4     1.0      .4     3.2     3.8     3.9
    Blue-collar occupations...............  157.7   162.6   163.2      .5      .8      .4     3.1     3.6     3.5

  Goods-producing industries(2)...........  160.8   166.1   166.7      .8      .7      .4     3.5     4.1     3.7
  Service-producing industries(3).........  163.3   169.0   169.8      .2     1.1      .5     3.0     3.7     4.0

  Manufacturing...........................  161.3   166.9   167.3      .7      .7      .2     3.7     4.2     3.7
    Blue-collar occupations...............  158.8   164.1   164.8      .8      .9      .4     3.5     4.2     3.8
  Nonmanufacturing........................  162.9   168.5   169.3      .3     1.1      .5     3.0     3.8     3.9

                Region(4)

Northeast.................................  161.3   166.9   167.9      .5     1.0      .6     3.2     4.0     4.1
South.....................................  159.0   163.2   163.9      .1     1.0      .4     2.8     2.7     3.1
Midwest...................................  164.6   171.7   172.5      .7      .8      .5     3.8     5.0     4.8
West......................................  165.0   171.4   172.2      .7     1.1      .5     3.5     4.6     4.4

                   Area

Metropolitan..............................  162.5   168.3   169.1      .4     1.0      .5     3.2     4.0     4.1
Other.....................................  160.8   166.1   166.9      .5      .7      .5     3.3     3.8     3.8

  1 Includes wages, salaries, and employer costs for employee benefits.
  2 Includes mining, construction, and manufacturing.
  3 Includes transportation, communication, and public utilities; wholesale and retail trade; finance, insurance,
and real estate; and service industries.
  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, Oklahoma, South Carolina, Tennessee,
Texas, Virginia, and West Virginia; Midwest: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri,
Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin; and West: Alaska, Arizona, California, 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 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-


     Industry and occupational group                                   3 months ended-         12 months ended-
                                             Dec.    Sep.    Dec.
                                             2002    2003    2003
                                                                     Dec.    Sep.    Dec.    Dec.    Sep.    Dec.
                                                                     2002    2003    2003    2002    2003    2003

Civilian workers..........................  157.8   161.8   162.3     0.4     0.9     0.3     2.9     2.9     2.9
    Excluding sales occupations...........  157.8   161.7   162.3      .4      .9      .4     2.9     2.9     2.9

                 Industry

  Goods producing(1)......................  155.1   158.3   158.7      .8      .5      .3     3.1     2.9     2.3
    Manufacturing.........................  156.5   159.7   160.1      .7      .4      .3     3.2     2.8     2.3
  Service producing(2)....................  158.8   163.0   163.6      .3     1.0      .4     2.8     2.9     3.0
    Services..............................  161.1   164.7   165.4      .2     1.2      .4     2.5     2.5     2.7
      Health services.....................  160.9   164.7   165.9      .8      .9      .7     3.5     3.2     3.1
        Hospitals.........................  162.2   166.3   167.7     1.2     1.2      .8     4.3     3.7     3.4
      Educational services................  160.1   162.7   163.2      .5     1.2      .3     3.2     2.1     1.9
    Public administration(3)..............  155.8   159.4   160.0      .6      .9      .4     2.8     3.0     2.7

  Nonmanufacturing........................  158.0   162.1   162.7      .3     1.0      .4     2.7     2.9     3.0

            Occupational group

  White collar............................  160.1   164.5   165.1      .3     1.0      .4     2.9     3.1     3.1
      Excluding sales.....................  160.7   165.0   165.7      .4      .9      .4     2.9     3.1     3.1
    Professional specialty and
     technical............................  158.6   161.8   162.5      .4     1.1      .4     2.3     2.4     2.5
    Executive, administrative, and
     managerial...........................  163.8   170.5   171.2      .2      .9      .4     3.6     4.3     4.5
    Administrative support, including
     clerical.............................  160.6   164.3   164.9      .6      .7      .4     3.1     2.9     2.7
  Blue collar.............................  152.6   155.8   156.3      .5      .6      .3     2.8     2.6     2.4
  Service.................................  156.9   159.8   160.6      .4      .7      .5     2.5     2.3     2.4


State and local government................  158.6   161.3   161.9      .6     1.0      .4     3.2     2.3     2.1

                 Industry

    Services..............................  159.2   161.6   162.1      .5     1.1      .3     3.2     2.0     1.8
        Excluding schools.................  160.3   163.2   164.5      .8      .9      .8     3.5     2.6     2.6
      Health services.....................  162.2   165.1   166.7     1.1     1.0     1.0     4.1     2.9     2.8
        Hospitals.........................  162.5   165.5   166.7     1.2     1.0      .7     4.4     3.1     2.6
      Educational services................  158.9   161.2   161.6      .5     1.2      .2     3.2     2.0     1.7
        Schools...........................  159.0   161.4   161.8      .4     1.2      .2     3.2     2.0     1.8
          Elementary and secondary........  158.1   160.6   160.9      .4     1.3      .2     3.3     2.0     1.8
          Colleges and universities.......  161.6   163.5   164.0      .6      .9      .3     3.1     1.7     1.5
    Public administration(3)..............  155.8   159.4   160.0     0.6     0.9     0.4     2.8     3.0     2.7

            Occupational group

  White collar............................  158.4   161.0   161.5      .6     1.1      .3     3.3     2.3     2.0
    Professional specialty and
     technical............................  158.4   161.0   161.4      .6     1.2      .2     3.3     2.2     1.9
    Executive, administrative, and
     managerial...........................  160.1   162.5   163.3      .7      .9      .5     3.2     2.2     2.0
    Administrative support, including
     clerical.............................  156.0   159.1   159.5      .6     1.2      .3     3.4     2.6     2.2
  Blue collar.............................  155.1   157.6   158.3      .4      .7      .4     2.9     2.0     2.1
  Service.................................  161.2   164.9   165.8      .4      .7      .5     2.4     2.7     2.9

  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 public administration.
  3 Includes executive, legislative, judicial, administrative, and regulatory activities of State and local
governments, SICs 91 through 96.



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-


     Industry and occupational group                                   3 months ended-         12 months ended-
                                             Dec.    Sep.    Dec.
                                             2002    2003    2003
                                                                     Dec.    Sep.    Dec.    Dec.    Sep.    Dec.
                                                                     2002    2003    2003    2002    2003    2003

Private industry workers..................  157.5   161.7   162.3     0.3     0.8     0.4     2.7     3.0     3.0
    Excluding sales occupations...........  157.5   161.7   162.4      .3      .7      .4     2.7     3.0     3.1

                 Industry

  Goods producing(1)......................  155.0   158.3   158.7      .7      .6      .3     3.0     2.9     2.4
      Excluding sales.....................  154.0   157.4   158.0      .7      .6      .4     2.9     2.9     2.6
    White collar..........................  158.6   161.9   162.1      .7      .3      .1     3.3     2.8     2.2
      Excluding sales.....................  156.3   159.9   160.4      .6      .4      .3     3.0     2.9     2.6
    Blue collar...........................  152.6   155.9   156.4      .7      .7      .3     2.8     2.9     2.5

    Construction..........................  150.2   153.6   154.0      .8      .8      .3     2.7     3.1     2.5

    Manufacturing.........................  156.5   159.7   160.1      .7      .4      .3     3.2     2.8     2.3
      White collar........................  158.6   162.0   162.1      .6      .2      .1     3.5     2.7     2.2
        Excluding sales...................  155.9   159.5   160.0      .6      .4      .3     3.2     2.9     2.6
      Blue collar.........................  154.7   157.9   158.5      .8      .6      .4     2.9     2.9     2.5
      Durables............................  157.3   160.6   160.9      .8      .6      .2     3.1     2.9     2.3
        Aircraft manufacturing (SIC
         3721)............................  163.1   167.4   167.7      .4      .3      .2     3.0     3.0     2.8
          White collar....................  156.2   160.3   160.6      .2      .1      .2     2.6     2.8     2.8
          Blue collar.....................  173.2   177.8   178.2      .6      .7      .2     3.5     3.3     2.9
      Nondurables.........................  155.2   158.3   158.7      .5      .3      .3     3.3     2.5     2.3


  Service producing(2)....................  158.6   163.3   163.9      .1     1.0      .4     2.7     3.1     3.3
      Excluding sales.....................  159.6   164.2   165.0      .2      .9      .5     2.6     3.1     3.4
    White collar..........................  160.7   166.0   166.6      .1     1.2      .4     2.7     3.4     3.7
      Excluding sales.....................  162.8   168.2   169.0      .2     1.0      .5     2.6     3.5     3.8
    Blue collar...........................  152.0   155.1   155.4      .1      .5      .2     2.6     2.2     2.2
    Service...............................  154.1   156.6   157.4      .4      .6      .5     2.6     2.0     2.1

    Transportation and public utilities...  154.1   156.0   156.5      .5      .3      .3     3.3     1.7     1.6
      Transportation......................  150.1   150.4   150.8      .3     -.1      .3     3.0      .5      .5
      Public utilities....................  159.3   163.4   164.1      .7      .8      .4     3.7     3.3     3.0
        Communications....................  160.7   165.4   165.9      .7     1.2      .3     3.5     3.6     3.2
        Electric, gas, and sanitary
         services.........................  157.4   161.0   161.8      .6      .4      .5     3.8     2.9     2.8

    Wholesale and retail trade............  155.5   159.2   159.5      .0     1.1      .2     2.2     2.4     2.6
        Excluding sales...................  157.0   160.7   161.3     -.1     1.3      .4     1.6     2.3     2.7
      Wholesale trade.....................  161.0   164.8   165.3      .4      .1      .3     4.0     2.7     2.7
        Excluding sales...................  163.7   165.7   166.3     0.7     0.3     0.4     3.7     1.9     1.6
      Retail trade........................  152.7   156.3   156.5     -.1     1.6      .1     1.3     2.2     2.5
        General merchandise stores........  149.2   153.1   153.6     -.6      .7      .3     1.8     2.0     2.9
        Food stores.......................  150.3   152.2   152.8      .1      .4      .4     2.5     1.4     1.7

    Finance, insurance, and real estate...  162.6   174.1   174.5      .1     1.0      .2     4.2     7.2     7.3
        Excluding sales...................  167.3   179.2   179.8      .7      .4      .3     5.2     7.9     7.5
      Banking, savings and loan, and other
       credit agencies....................  183.9   209.1   210.2      .7      .2      .5     7.1    14.4    14.3
      Insurance...........................  159.1   163.9   164.5     -.3      .6      .4     2.6     2.7     3.4
        Excluding sales...................  155.9   160.4   160.7      .0      .5      .2     3.1     2.9     3.1

    Services..............................  161.7   165.9   166.7      .1     1.2      .5     2.2     2.7     3.1
      Business services...................  164.8   169.1   169.8      .1     1.6      .4      .7     2.7     3.0
      Health services.....................  160.7   164.6   165.8      .8      .9      .7     3.4     3.2     3.2
        Hospitals.........................  162.1   166.5   167.9     1.2     1.2      .8     4.3     3.9     3.6
        Nursing homes.....................    -       -       -        .9      .7      .6     4.1     3.1     2.8
      Educational services................  166.5   170.3   171.0      .8     1.6      .4     3.7     3.1     2.7
        Colleges and universities.........  164.3   167.6   168.4      .7     1.5      .5     2.9     2.8     2.5
Industry-Continued

  Nonmanufacturing industries.............  157.5   162.1   162.6     0.2     1.0     0.3     2.6     3.1     3.2
    White collar..........................  160.5   165.7   166.3      .2     1.1      .4     2.6     3.4     3.6
      Excluding sales.....................  162.5   167.7   168.5      .2     1.0      .5     2.7     3.5     3.7
    Blue collar...........................  150.2   153.4   153.8      .3      .7      .3     2.6     2.4     2.4
    Service...............................  154.0   156.5   157.3      .4      .6      .5     2.6     2.0     2.1

            Occupational group

  White collar............................  160.4   165.3   165.9      .3      .9      .4     2.8     3.3     3.4
      Excluding sales.....................  161.3   166.2   167.0      .3      .8      .5     2.8     3.4     3.5
    Professional specialty and
     technical............................  158.5   162.1   163.0      .2     1.0      .6     1.7     2.5     2.8
    Executive, administrative, and
     managerial...........................  164.5   171.8   172.5      .1      .9      .4     3.7     4.6     4.9
    Sales.................................  156.8   161.6   161.1     -.1     1.4     -.3     2.8     3.0     2.7
    Administrative support, including
     clerical.............................  161.3   165.1   165.7      .6      .7      .4     3.1     3.0     2.7

  Blue collar.............................  152.4   155.6   156.1      .5      .6      .3     2.8     2.6     2.4
    Precision production, craft, and
     repair...............................  152.3   155.5   156.2      .3      .5      .5     2.6     2.4     2.6
    Machine operators, assemblers, and
     inspectors...........................  153.2   156.8   156.9      .8     1.0      .1     2.8     3.2     2.4
    Transportation and material moving....  146.9   149.8   149.8      .4      .5      .0     2.9     2.4     2.0
    Handlers, equipment cleaners, helpers,
     and laborers.........................  157.2   159.9   160.6      .8      .6      .4     3.1     2.5     2.2

  Service.................................  154.5   157.1   157.8      .4      .6      .4     2.6     2.1     2.1

  Production and nonsupervisory
   occupations(3).........................  155.2   158.8   159.4      .3      .9      .4     2.4     2.7     2.7

  1 Includes mining, construction, and manufacturing.
  2 Includes transportation, communication, and public utilities; wholesale and retail trade; finance, insurance,
and real estate; and service industries.
  3 This series has the same industry and occupational coverage as the Hourly Earnings Index, which was
discontinued in January 1989.

  NOTE:  Dashes indicate data not available.



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                                 3 months ended-         12 months ended-
                                             Dec.    Sep.    Dec.
                                             2002    2003    2003
                                                                     Dec.    Sep.    Dec.    Dec.    Sep.    Dec.
                                                                     2002    2003    2003    2002    2003    2003


            Bargaining status

Union.....................................  152.5   155.3   156.2     0.8     0.6     0.6     3.5     2.6     2.4
    Blue-collar occupations...............  149.6   152.8   153.5      .8      .8      .5     3.4     3.0     2.6

  Goods-producing industries(1)...........  151.2   154.8   155.4      .8      .6      .4     3.3     3.2     2.8
  Service-producing industries(2).........  154.1   156.3   157.3      .8      .8      .6     3.5     2.2     2.1

  Manufacturing...........................  153.1   156.7   157.1     1.0      .5      .3     3.4     3.4     2.6
    Blue-collar occupations...............  151.8   155.2   155.8     1.0      .5      .4     3.3     3.3     2.6
  Nonmanufacturing........................  152.1   154.6   155.6      .7      .7      .6     3.4     2.3     2.3

Nonunion..................................  158.5   163.0   163.4      .3      .9      .2     2.7     3.1     3.1
    Blue-collar occupations...............  154.2   157.5   157.8      .3      .6      .2     2.5     2.5     2.3

  Goods-producing industries(1)...........  156.6   159.7   160.1      .7      .5      .3     3.0     2.7     2.2
  Service-producing industries(2).........  159.0   164.0   164.5      .1     1.0      .3     2.5     3.2     3.5

  Manufacturing...........................  157.8   160.9   161.3      .6      .4      .2     3.1     2.6     2.2
    Blue-collar occupations...............  156.8   159.8   160.4      .7      .7      .4     2.8     2.6     2.3
  Nonmanufacturing........................  158.3   163.1   163.7      .1     1.0      .4     2.5     3.2     3.4

                Region(3)

Northeast.................................  155.7   160.0   160.9      .4     1.0      .6     2.6     3.2     3.3
South.....................................  154.6   157.4   157.9     -.1      .8      .3     2.2     1.7     2.1
Midwest...................................  160.2   166.1   166.5      .6      .7      .2     3.6     4.3     3.9
West......................................  160.1   164.7   165.2      .5     1.0      .3     2.6     3.4     3.2

                   Area

Metropolitan..............................  157.9   162.2   162.7      .3      .9      .3     2.7     3.0     3.0
Other.....................................  154.8   158.9   159.5      .7      .6      .4     2.9     3.3     3.0

  1 Includes mining, construction, and manufacturing.
  2 Includes transportation, communication, and public utilities; wholesale and retail trade; finance, insurance,
and real estate; and service industries.
  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, Oklahoma, South Carolina, Tennessee,
Texas, Virginia, and West Virginia; Midwest: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri,
Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin; and West: Alaska, Arizona, California, 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 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                Dec.    Sep.    Dec.
                                             2002    2003    2003
                                                                     Dec.    Sep.    Dec.    Dec.    Sep.    Dec.
                                                                     2002    2003    2003    2002    2003    2003

Civilian workers..........................  173.3   182.8   184.3     0.9     1.6     0.8     5.0     6.5     6.3
 State and local government...............  168.2   176.9   178.5     1.4     3.1      .9     6.2     6.7     6.1
 Private industry.........................  174.6   184.3   185.8      .9     1.3      .8     4.7     6.5     6.4

                 Industry

   Goods producing(1).....................  171.0   182.3   183.8     1.3     1.2      .8     5.2     8.0     7.5
   Service producing(2)...................  175.9   184.7   186.2      .6     1.3      .8     4.5     5.6     5.9

   Manufacturing..........................  168.9   181.1   182.3     1.3     1.2      .7     5.3     8.6     7.9
     Aircraft manufacturing (SIC 3721)....  192.4   221.4   213.4     5.4      .5    -3.6    10.3    21.2    10.9
       White collar.......................  187.0   218.7   216.3     2.6      .2    -1.1     6.9    20.0    15.7
       Blue collar........................  199.3   224.0   207.5     9.6     1.0    -7.4    15.6    23.2     4.1
   Nonmanufacturing.......................  176.3   185.1   186.7      .6     1.3      .9     4.4     5.7     5.9

            Occupational group

   White collar...........................  178.5   187.7   189.2      .7     1.2      .8     4.3     5.9     6.0
   Blue collar............................  167.8   178.4   179.9     1.0     1.3      .8     5.4     7.3     7.2
   Service................................  174.9   184.1   186.4      .9     1.1     1.2     5.4     6.2     6.6

            Bargaining status

   Union..................................  172.7   185.4   187.1     1.1     1.5      .9     5.7     8.5     8.3
   Nonunion...............................  174.7   183.7   185.1      .7     1.2      .8     4.5     5.9     6.0

  1 Includes mining, construction, and manufacturing.
  2 Includes transportation, communication, and public utilities;
wholesale and retail trade; finance, insurance, and real estate; and service industries.


                             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 referral bonuses
 and lump-sum payments provided in lieu of wage increases); 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, Medicare, Federal and
 State unemployment insurance, and workers' compensation; and other
 benefits-severance pay and supplemental unemployment plans.

     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 36,200 occupational observations within about 8,300 sample
 establishments in private industry and approximately 3,600 occupations
 within about 800 sample establishments in State and local governments.
 Data are collected for the pay period including the 12th 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.  Details on the sample design are
 included in the bulletin, Employment Cost Indexes, 1975-99, (Bulletin
 2532).  Within an establishment, specific job categories are selected and
 classified into about 500 occupational classifications according to the
 1990 Census of Population.  Individual occupations are combined into
 broader occupational groups.  Fixed employment weights are used each
 quarter to calculate the most aggregate series-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.  For more information on these topics,
 see the articles, "Introducing New Weights for the Employment Cost Index,"
 in the June 1985 issue of the Monthly Labor Review and "Introducing 1990
 Weights for the Employment Cost Index" in the June 1995 issue of
 Compensation and Working Conditions.

     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.  For more
 information on the methodology used to seasonally adjust ECI series, see
 the bulletin, Employment Cost Indexes, 1975-99, (Bulletin 2532).  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 seasonal factors for 2003 and revised seasonally
 adjusted indexes for the past five years are available on the Internet site
 (http://www.bls.gov/ncs/ect/home.htm) or upon request.

     The ECI sample is rotated over approximately five years, which makes
 the sample more representative and reduces respondent burden.  The sample
 is replaced on a cross-area, cross-industry basis.

     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 one 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.
 To assist users in ascertaining the reliability of series, the five-year
 moving average of standard errors for all estimates (excluding seasonally
 adjusted series) will be available on the Internet site
 (http://www.bls.gov/ncs/ect/home.htm) shortly after publication of the
 news release.

     When determining data to be used in contract negotiations, it is
 important to note that differences by bargaining status may be due to
 factors other than union 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.  An important
 consideration when choosing a series for escalation is the number of
 workers covered.  Series with smaller numbers of workers may have larger
 sampling errors or be dominated by a smaller number of employers.  For
 more information, see the web site:
 (http://www.bls.gov/ect/escalator.htm).

     More detailed information on the ECI is available from several
 sources.  These include an historical bulletin-Employment Cost Indexes,
 1975-99, (Bulletin 2532), a chapter, "National Compensation Measures," in
 the BLS Handbook of Methods (Bulletin 2490), and several articles
 published in the Monthly Labor Review and Compensation and Working
 Conditions.  The bulletin is 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://www.bls.gov/ncs/ect/home.htm).

     The costs per hour worked of compensation components, based on data
 from the ECI, were recently published in a separate news release titled
 "Employer Costs for Employee Compensation-September 2003."  Historical
 data and related articles are included in the bulletin, Employer Costs for
 Employee Compensation, 1986-99, (Bulletin 2526).  An annual historical
 summary from March 1986 through March 2002 is also available on the
 Internet site (http://www.bls.gov/ncs/ect/home.htm) or upon request.  Data
 are also available on a quarterly basis beginning with June 2002 data.
 The December 2003 data are expected to be published in February 2004.  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.

     Information in this release will be made available to sensory impaired
 individuals upon request.  Voice phone: (202) 691-5200; Federal Relay
 Service Number: 1-800-877-8339.