Western Information Office

Total compensation costs for private industry workers rose 3.5 percent in the West for the year ended March 2008, according to the Bureau of Labor Statistics of the U.S. Department of Labor. The South and the Northeast followed closely with increases of 3.4 and 3.3 percent, respectively, during the same period, while the Midwest recorded a 2.6-percent advance. (See charts A and B.) Richard Holden, the Bureau’s regional commissioner, noted that all four regions experienced little or no change in their rates of gain for the year ended March 2008 compared to those recorded in March 2007. Nationally, total compensation costs rose 3.2 percent during the last year, identical to the gain registered in March 2007. (See Technical Note for regional definitions.)

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. In addition to regional estimates, ECI data for nine smaller geographical divisions are also available. Growth rates for total compensation costs ranged from 3.7 percent in the West North Central division to 2.2 percent in the East North Central division. (See table 1) The ECI for wages and salaries (a component of the total index that excludes benefit costs) exhibited a similar geographical pattern, as rates of gain ranged from 3.9 percent in the West North Central division to 2.1 percent in the East North Central division.

Among the regions, the annual change in the ECI for wages and salaries ranged from 3.4 percent in the Northeast to 2.6 percent in the Midwest for the year ended March 2008. Wages and salaries rose 3.3 percent in both the South and West for the same period. (See chart C) Compared to a year ago, annual wage and salary gains were little changed in the Northeast and South, but were lower in the Midwest and West. Nationally, wages and salaries rose 3.2 percent during the last year, compared with the 3.6-percent gain registered in March 2007.

The ECI for total compensation in the West rose 3.5 percent in the year ended March 2008, comparable to the 3.6-percent increase recorded in March 2007. However, the latest over-the-year gain in the regional ECI for wages and salaries, at 3.3 percent, was lower than the year-ago rate of 4.1 percent. Retail prices in the West, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), increased 3.7 percent during the year ended March 2008. (See tables 2 and 3.)

Total compensation costs in the South rose 3.4 percent for the year ended March 2008, about the same as the 3.3-percent gain registered during the year ended March 2007. The wage and salary ECI in the South rose 3.3 percent during the last 12 months compared to a 3.6-percent increase recorded a year ago. Retail prices in the South advanced 4.4 percent during the year ended March 2008.

From March 2007 to March 2008, total compensation costs in the Northeast rose 3.3 percent, compared to a 3.1-percent increase recorded in the previous year. Wages and salaries in the Northeast increased 3.4 percent for the year ended March 2008, close to the 3.2-percent gain reported in March 2007. Retail prices in the Northeast increased 3.9 percent during the year ended March 2008.

In the Midwest, total compensation costs advanced 2.6 percent during the year ended March 2008, identical to the increase registered during the previous 12-month period. On the other hand, the recent 2.6-percent advance in the ECI for wages and salaries in the Midwest was lower than the 3.2-percent over-the-year increase posted last March. Retail prices in the Midwest increased 3.7 percent from March 2007 to March 2008.

For the United States as a whole, private industry compensation costs rose 3.2 percent for the year ended March 2008, matching the over-the-year increase reported in March 2007. During the latest 12-month period, wages and salaries also advanced 3.2 percent nationwide, below the year-ago gain of 3.6 percent. (See chart D.) The national CPI-U rose 4.0 percent from March 2007 to March 2008.

In addition to the geographical data, a comprehensive national report is available that provides data by industry, occupational group, union status, and all metropolitan and non-metropolitan areas combined. This report also presents data for both private and state and local government employees. The report on the Employment Cost Index and further technical information may be obtained from the U.S. Bureau of Labor Statistics, Western Information Office by calling (415) 625-2270. The release is available on the Internet at www.bls.gov/ncs/ect/. Current and historical information from other Bureau programs may be accessed via our regional homepage at www.bls.gov/ro9/. The ECI for March 2008 is scheduled to be released Thursday, July 31, 2008 at 8:30 a.m. (ET). Information from the Employment Cost Index program is available to sensory impaired individuals upon request. Voice phone: 202-691-5200, Federal Relay Services: 1-800-877-8339.

TECHNICAL NOTE

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.

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.

Beginning with the release of the March 2006 data, indexes were rebased to December 2005 = 100 from June 1989 = 100. The percentage changes shown in the historical tables were calculated from the rebased indexes. Thus, changes may differ from those originally published because of rounding. More information on rebasing is included in the article, "Changes affecting the Employment Cost Index" in the April 2006 issue of the Monthly Labor Review.

Seasonally adjusted data for 2002-2007 were revised with the March 2008 estimates to reflect updated seasonal factors. The new seasonal factors and historical listings containing revised seasonally adjusted indexes are available on the Internet site www.bls.gov/ncs/ect/.

Regional definitions:

Northeast: Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.

South: Alabama, Arkansas, Delaware, the 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.

West: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.

 

Table 1. Employment Cost Index for total compensation and for wages and salaries, private industry workers, United States and geographical regions and divisions, 2007-2008, not seasonally adjusted

Area	Total compensation					Wages and salaries
	Index (December 2005 = 100)			Percent change from		Index (December 2005 = 100)			Percent change from
	Mar. 2007	Dec. 2007	Mar. 2008	Dec. 2007	Mar. 2007	Mar. 2007	Dec. 2007	Mar. 2008	Dec. 2007	Mar. 2007
United States	104.0	106.3	107.3	0.9	3.2	104.3	106.6	107.6	0.9	3.2
Northeast	104.0	106.8	107.4	0.6	3.3	104.0	106.6	107.5	0.8	3.4
New England	103.6	106.1	106.7	0.6	3.0	103.6	106.3	107.1	0.8	3.4
Middle Atlantic	104.2	107.1	107.8	0.7	3.5	104.2	106.7	107.6	0.8	3.3
South	104.3	106.7	107.8	1.0	3.4	104.6	107.0	108.1	1.0	3.3
South Atlantic	104.9	107.3	108.5	1.1	3.4	105.0	107.5	108.6	1.0	3.4
East South Central	103.3	105.4	106.5	1.0	3.1	104.2	106.3	107.2	0.8	2.9
West South Central	103.7	106.1	107.3	1.1	3.5	104.1	106.6	107.8	1.1	3.6
Midwest	103.3	105.3	106.0	0.7	2.6	103.6	105.6	106.3	0.7	2.6
East North Central	103.2	105.0	105.5	0.5	2.2	103.6	105.3	105.8	0.5	2.1
West North Central	103.5	105.9	107.3	1.3	3.7	103.8	106.3	107.9	1.5	3.9
West	104.2	106.5	107.8	1.2	3.5	104.8	107.0	108.3	1.2	3.3
Mountain	105.2	107.5	108.4	0.8	3.0	105.3	107.8	108.9	1.0	3.4
Pacific	103.9	106.1	107.6	1.4	3.6	104.6	106.8	108.1	1.2	3.3

Table 2. Employment Cost Index for total compensation¹, private industry workers, United States and census regions, 2003-2008, not seasonally adjusted

Total Compensation	Index (December 2005=100)					3-month percent change					12-month percent change
	U.S.	Northeast	South	Midwest	West	U.S.	Northeast	South	Midwest	West	U.S.	Northeast	South	Midwest	West
2003
March	91.4	90.6	92.0	92.1	90.9	1.6	1.5	0.9	2.9	1.2	3.6	3.3	2.8	4.7	4.0
June	92.3	91.4	92.7	92.8	92.0	1.0	0.9	0.8	0.8	1.2	3.5	3.2	2.4	4.6	4.0
September	93.2	92.4	93.6	93.6	93.2	1.0	1.1	1.0	0.9	1.3	3.9	3.9	2.6	5.2	4.6
December	93.6	92.9	93.9	94.0	93.8	0.4	0.5	0.3	0.4	0.6	4.0	4.0	3.0	5.0	4.5
2004
March	94.9	94.2	95.2	95.0	95.3	1.4	1.4	1.4	1.1	1.6	3.8	4.0	3.5	3.1	4.8
June	95.9	95.5	96.2	95.9	96.2	1.1	1.4	1.1	0.9	0.9	3.9	4.5	3.8	3.3	4.6
September	96.7	96.3	97.1	96.6	96.9	0.8	0.8	0.9	0.7	0.7	3.8	4.2	3.7	3.2	4.0
December	97.2	96.6	97.7	96.9	97.4	0.5	0.3	0.6	0.3	0.5	3.8	4.0	4.0	3.1	3.8
2005
March	98.2	97.6	98.9	97.8	98.4	1.0	1.0	1.2	0.9	1.0	3.5	3.6	3.9	2.9	3.3
June	98.9	98.5	99.3	98.4	99.3	0.7	0.9	0.4	0.6	0.9	3.1	3.1	3.2	2.6	3.2
September	99.5	99.2	99.7	99.5	99.7	0.6	0.7	0.4	1.1	0.4	2.9	3.0	2.7	3.0	2.9
December	100.0	100.0	100.0	100.0	100.0	0.5	0.8	0.3	0.5	0.3	2.9	3.5	2.4	3.2	2.7
2006
March	100.8	100.9	101.0	100.7	100.6	0.8	0.9	1.0	0.7	0.6	2.6	3.4	2.1	3.0	2.2
June	101.7	101.8	101.6	101.7	101.8	0.9	0.9	0.6	1.0	1.2	2.8	3.4	2.3	3.4	2.5
September	102.5	102.5	102.8	102.3	102.5	0.8	0.7	1.2	0.6	0.7	3.0	3.3	3.1	2.8	2.8
December	103.2	103.3	103.5	102.8	103.0	0.7	0.8	0.7	0.5	0.5	3.2	3.3	3.5	2.8	3.0
2007
March	104.0	104.0	104.3	103.3	104.2	0.8	0.7	0.8	0.5	1.2	3.2	3.1	3.3	2.6	3.6
June	104.9	105.1	105.3	104.2	104.9	0.9	1.1	1.0	0.9	0.7	3.1	3.2	3.6	2.5	3.0
September	105.7	106.2	106.1	104.6	105.7	0.8	1.0	0.8	0.4	0.8	3.1	3.6	3.2	2.2	3.1
December	106.3	106.8	106.7	105.3	106.5	0.6	0.6	0.6	0.7	0.8	3.0	3.4	3.1	2.4	3.4
2008
March	107.3	107.4	107.8	106.0	107.8	0.9	0.6	1.0	0.7	1.2	3.2	3.3	3.4	2.6	3.5
Footnotes: (1) The index measures change in total compensation costs: wages, salaries, and employer costs for employee benefits.

Table 3. Employment Cost Index for wages and salaries only, private industry workers, United States and census regions, 2003-2008, not seasonally adjusted

Wages and Salaries	Index (December 2005=100)					3-month percent change					12-month percent change
	U.S.	Northeast	South	Midwest	West	U.S.	Northeast	South	Midwest	West	U.S.	Northeast	South	Midwest	West
2003
March	93.3	92.4	93.5	94.2	93.0	1.2	1.0	0.3	2.7	0.6	2.9	2.4	1.9	4.3	2.9
June	94.0	93.2	94.1	94.7	93.9	0.8	0.9	0.6	0.5	1.0	2.6	2.4	1.5	4.1	2.6
September	94.8	94.1	94.9	95.2	95.1	0.9	1.0	0.9	0.5	1.3	3.0	3.3	1.7	4.3	3.4
December	95.1	94.5	95.0	95.5	95.5	0.3	0.4	0.1	0.3	0.4	3.1	3.3	1.9	4.1	3.4
2004
March	95.7	95.3	95.8	95.6	96.4	0.6	0.8	0.8	0.1	0.9	2.6	3.1	2.5	1.5	3.7
June	96.5	96.3	96.7	96.1	97.0	0.8	1.0	0.9	0.5	0.6	2.7	3.3	2.8	1.5	3.3
September	97.3	97.1	97.5	96.9	97.7	0.8	0.8	0.8	0.8	0.7	2.6	3.2	2.7	1.8	2.7
December	97.6	97.2	98.0	97.1	98.0	0.3	0.1	0.5	0.2	0.3	2.6	2.9	3.2	1.7	2.6
2005
March	98.3	97.8	98.9	97.8	98.4	0.7	0.6	0.9	0.7	0.4	2.7	2.6	3.2	2.3	2.1
June	98.9	98.6	99.3	98.2	99.3	0.6	0.8	0.4	0.4	0.9	2.5	2.4	2.7	2.2	2.4
September	99.5	99.2	99.7	99.4	99.6	0.6	0.6	0.4	1.2	0.3	2.3	2.2	2.3	2.6	1.9
December	100.0	100.0	100.0	100.0	100.0	0.5	0.8	0.3	0.6	0.4	2.5	2.9	2.0	3.0	2.0
2006
March	100.7	100.8	101.0	100.4	100.7	0.7	0.8	1.0	0.4	0.7	2.4	3.1	2.1	2.7	2.3
June	101.7	101.7	101.6	101.4	102.1	1.0	0.9	0.6	1.0	1.4	2.8	3.1	2.3	3.3	2.8
September	102.5	102.5	102.9	102.0	102.7	0.8	0.8	1.3	0.6	0.6	3.0	3.3	3.2	2.6	3.1
December	103.2	103.1	103.6	102.6	103.2	0.7	0.6	0.7	0.6	0.5	3.2	3.1	3.6	2.6	3.2
2007
March	104.3	104.0	104.6	103.6	104.8	1.1	0.9	1.0	1.0	1.6	3.6	3.2	3.6	3.2	4.1
June	105.1	105.0	105.6	104.4	105.4	0.8	1.0	1.0	0.8	0.6	3.3	3.2	3.9	3.0	3.2
September	106.0	106.1	106.5	105.0	106.2	0.9	1.0	0.9	0.6	0.8	3.4	3.5	3.5	2.9	3.4
December	106.6	106.6	107.0	105.6	107.0	0.6	0.5	0.5	0.6	0.8	3.3	3.4	3.3	2.9	3.7
2008
March	107.6	107.5	108.1	106.3	108.3	0.9	0.8	1.0	0.7	1.2	3.2	3.4	3.3	2.6	3.3

 

Last Modified Date: May 7, 2008

 

 

 

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U.S. Bureau of Labor Statistics Western Information Office Attn: EA & I P.O. Box 193766, San Francisco, CA 94119-3766 http://www.bls.gov/RO9/ | Telephone: (415) 625-2270 | Fax: (415) 625-2351 Do you have a Western Region (RO9) data question?