Smaller rise in benefit costs for State and local government workers at end of 2001

Benefit costs for State and local government workers rose 0.6 percent during the December 2001 quarter, dropping sharply from the 2.4 percent gain in the September quarter. The slower increase in benefit costs was largely due to smaller increases in employer costs for health insurance and retirement benefits.

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Wages and salaries for State and local government employees rose 0.5 percent in the quarter ended in December, following a 1.0 percent increase the previous quarter.

The December 2001 over-the-year increase in benefit costs for State and local government workers for December 2001 was 5.5 percent, more than double the gain of 2.4 percent for December 2000.The 12-month gain in wages and salaries was 3.6 percent, compared with a gain of 3.3 percent for December 2000.

These data are from the BLS Employment Cost Trends program. The 3-month changes in this article are seasonally adjusted, while the 12-months changes are not seasonally adjusted. Learn more in "Employment Cost Index—December 2001," news release USDL 02-46.