News Release Information
25-1249-PHI
Monday, August 04, 2025
Changing Compensation Costs in the Washington Metropolitan Area — June 2025
Compensation costs for private industry workers increased 2.5 percent in the Washington-Baltimore-Arlington, DC-MD-VA-WV-PA, Combined Statistical Area (CSA) for the year ending in June 2025, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Alexandra Hall Bovee noted that one year ago, Washington experienced an annual gain of 4.3 percent in compensation costs. (See chart 1 and table 1.) Nationwide, compensation costs rose 3.5 percent in June 2025.
Chart 1. Twelve-month percent changes in total compensation for private industry workers in the United States and Washington, not seasonally adjusted| Quarter | United States | Washington |
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Jun 2023 | 4.5 | 5.2 |
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Sep | 4.3 | 5.2 |
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Dec | 4.1 | 4.4 |
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Mar | 4.1 | 4.5 |
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Jun 2024 | 3.9 | 4.3 |
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Sep | 3.6 | 3.6 |
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Dec | 3.6 | 3.7 |
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Mar | 3.4 | 2.6 |
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Jun 2025 | 3.5 | 2.5 |
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Locally, wages and salaries, the largest component of compensation costs, advanced at a 2.1-percent pace for the 12-month period ended June 2025. (See chart 2.) Nationwide, wages and salaries rose 3.5 percent over the same period.
Chart 2. Twelve-month percent changes in wages and salaries for private industry workers in the United States and Washington, not seasonally adjusted| Quarter | United States | Washington |
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Jun 2023 | 4.6 | 5.7 |
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Sep | 4.5 | 5.5 |
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Dec | 4.3 | 4.9 |
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Mar | 4.3 | 5.1 |
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Jun 2024 | 4.1 | 4.9 |
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Sep | 3.8 | 4.0 |
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Dec | 3.7 | 3.9 |
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Mar | 3.4 | 2.5 |
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Jun 2025 | 3.5 | 2.1 |
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Washington is 1 of 15 metropolitan areas in the United States and 1 of 5 areas in the South region of the country for which locality compensation cost data are available. Among these 15 largest areas, over-the-year percentage changes in compensation costs ranged from 5.3 percent in Minneapolis-St. Paul to 2.1 percent in Detroit-Warren-Ann Arbor in June 2025; for wages and salaries, Minneapolis registered the largest increase (5.7 percent), and Washington registered the smallest (2.1 percent). (See chart 3.)
Chart 3. Twelve-month percent changes in total compensation and wages and salaries for private industry workers by area, not seasonally adjusted, June 2025| Area | Total compensation | Wages and salaries |
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Detroit | 2.1 | 3.5 |
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Washington | 2.5 | 2.1 |
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Boston | 3.0 | 2.8 |
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Miami | 3.0 | 2.7 |
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New York | 3.1 | 3.1 |
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Atlanta | 3.2 | 3.2 |
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Phoenix | 3.3 | 3.0 |
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San Jose | 3.3 | 3.1 |
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United States | 3.5 | 3.5 |
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Chicago | 3.6 | 3.6 |
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Dallas | 3.7 | 3.4 |
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Philadelphia | 3.7 | 3.9 |
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Los Angeles | 3.9 | 4.1 |
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Seattle | 4.7 | 4.6 |
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Houston | 4.9 | 5.5 |
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Minneapolis | 5.3 | 5.7 |
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The annual increase in compensation costs in Washington was 2.5 percent in June 2025, compared to advances that ranged from 4.9 percent to 3.0 percent in the four other metropolitan areas in the South (Atlanta-Athens-Clarke County-Sandy Springs, Dallas-Fort Worth, Houston-Pasadena, and Miami-Port St. Lucie-Fort Lauderdale). Washington’s 2.1-percent gain in wages and salaries over this 12-month period compared to rates ranging from 5.5 percent to 2.7 percent in the four other southern localities. (See table 2.)
The Employment Cost Index for September 2025 is scheduled to be released on Friday, October 31, 2025, at 8:30 a.m. (ET).
Rounding and Area Definition Changes to Employment Cost Index (ECI) Estimates
Effective with the release of June 2025 ECI data, BLS started publishing index levels to three decimal places. Percent changes based on these more precise indexes will continue to be published to one decimal place.
Area definitions have been updated with this release based on Office of Management and Budget Bulletin No. 23-01, dated July 21, 2023. See the Tracking Wage Growth in American Cities page for more information on available geographies and their historical timelines.
Technical Note
Locality compensation costs are part of the national Employment Cost Index (ECI), which measures quarterly changes in compensation costs (wages and salaries and employer costs for employee benefits) free from the influence of employment shifts among occupations and industries. More information can be found in the national Employment Cost Index Technical Note. For information on survey concepts, coverage, methods, nonresponse adjustment, and imputation see the National Compensation Measures Handbook of Methods.
In addition to the data presented here, ECI national data by industry, occupational group, and union status, as well as data for civilian, private, and state and local government employees, are available on the Employment Cost Index website. The national Employment Cost Index Summary is also available online. Additional information for regions, states, and local areas may be accessed via our Mid-Atlantic Information Office regional homepage.
The substate area data published in this news release reflect the Office of Management and Budget Bulletin No. 23-01, dated July 21, 2023. See the Tracking Wage Growth in American Cities page for more information on available geographies and their historical timelines.
The Washington-Baltimore-Arlington, DC-MD-VA-WV-PA CSA includes the District of Columbia; Baltimore city and Anne Arundel, Baltimore, Calvert, Carroll, Charles, Dorchester, Frederick, Harford, Howard, Montgomery, Prince George's, Queen Anne's, St. Mary's, Talbot, and Washington Counties in Maryland; Alexandria, Fairfax, Falls Church, Fredericksburg, Manassas, Manassas Park, and Winchester cities and Arlington, Clarke, Culpeper, Fairfax, Fauquier, Frederick, Loudoun, Prince William, Rappahannock, Spotsylvania, Stafford, and Warren Counties in Virginia; Berkeley, Hampshire, and Jefferson Counties in West Virginia; and Franklin County in Pennsylvania.
Information in this release will be made available to individuals with sensory impairments upon request. Voice phone: (202) 691-5200; Telecommunications Relay Service: 7-1-1.
Table 1. Employment Cost Index 12-month percent changes for total compensation and for wages and salaries, private industry workers, United States, South Census region, and the Washington area, not seasonally adjusted| Area | Total compensation (%) | Wages and salaries (%) |
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| Mar. | Jun. | Sep. | Dec. | Mar. | Jun. | Sep. | Dec. |
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United States | |
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2021 | 2.8 | 3.1 | 4.1 | 4.4 | 3.0 | 3.5 | 4.6 | 5.0 |
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2022 | 4.8 | 5.5 | 5.2 | 5.1 | 5.0 | 5.7 | 5.2 | 5.1 |
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2023 | 4.8 | 4.5 | 4.3 | 4.1 | 5.1 | 4.6 | 4.5 | 4.3 |
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2024 | 4.1 | 3.9 | 3.6 | 3.6 | 4.3 | 4.1 | 3.8 | 3.7 |
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2025 | 3.4 | 3.5 | | | 3.4 | 3.5 | | |
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South | |
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2021 | 3.1 | 3.1 | 4.5 | 4.5 | 3.4 | 3.6 | 5.2 | 5.1 |
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2022 | 4.6 | 5.8 | 5.0 | 5.0 | 4.8 | 5.9 | 5.0 | 5.1 |
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2023 | 5.2 | 4.4 | 4.6 | 4.4 | 5.4 | 4.6 | 4.8 | 4.6 |
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2024 | 4.3 | 3.7 | 3.3 | 3.3 | 4.6 | 3.9 | 3.4 | 3.4 |
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2025 | 3.3 | 3.5 | | | 3.3 | 3.5 | | |
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Washington-Baltimore-Arlington | |
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2021 | 3.9 | 3.7 | 4.2 | 4.0 | 4.0 | 4.3 | 4.7 | 4.2 |
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2022 | 3.5 | 4.2 | 4.4 | 4.3 | 3.5 | 3.8 | 4.1 | 4.3 |
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2023 | 5.5 | 5.2 | 5.2 | 4.4 | 5.7 | 5.7 | 5.5 | 4.9 |
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2024 | 4.5 | 4.3 | 3.6 | 3.7 | 5.1 | 4.9 | 4.0 | 3.9 |
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2025 | 2.6 | 2.5 | | | 2.5 | 2.1 | | |
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Table 2. Employment Cost Index 12-month percent changes for total compensation and for wages and salaries, private industry workers, United States, Census regions, and localities, not seasonally adjusted| Area | Total compensation (%) | Wages and salaries (%) |
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| Jun. 2024 | Mar. 2025 | Jun. 2025 | Jun. 2024 | Mar. 2025 | Jun. 2025 |
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United States | 3.9 | 3.4 | 3.5 | 4.1 | 3.4 | 3.5 |
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Northeast | 3.5 | 3.3 | 3.6 | 3.7 | 3.6 | 3.6 |
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Boston-Worcester-Providence | 3.1 | 3.6 | 3.0 | 3.3 | 3.7 | 2.8 |
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New York-Newark | 3.8 | 3.0 | 3.1 | 4.0 | 3.2 | 3.1 |
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Philadelphia-Reading-Camden | 3.2 | 3.3 | 3.7 | 3.2 | 3.4 | 3.9 |
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South | 3.7 | 3.3 | 3.5 | 3.9 | 3.3 | 3.5 |
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Atlanta-Athens-Clarke County-Sandy Springs | 4.4 | 3.6 | 3.2 | 5.4 | 3.7 | 3.2 |
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Dallas-Fort Worth | 3.9 | 4.4 | 3.7 | 3.9 | 4.5 | 3.4 |
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Houston-Pasadena | 5.2 | 7.5 | 4.9 | 5.1 | 4.8 | 5.5 |
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Miami-Port St. Lucie-Fort Lauderdale | 5.6 | 1.1 | 3.0 | 6.6 | 1.2 | 2.7 |
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Washington-Baltimore-Arlington | 4.3 | 2.6 | 2.5 | 4.9 | 2.5 | 2.1 |
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Midwest | 3.6 | 3.3 | 3.5 | 3.7 | 3.2 | 3.7 |
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Chicago-Naperville | 3.7 | 3.2 | 3.6 | 3.5 | 3.1 | 3.6 |
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Detroit-Warren-Ann Arbor | 5.4 | 4.6 | 2.1 | 4.6 | 3.8 | 3.5 |
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Minneapolis-St. Paul | 4.2 | 5.7 | 5.3 | 4.3 | 5.7 | 5.7 |
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West | 4.6 | 3.7 | 3.5 | 4.9 | 3.5 | 3.4 |
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Los Angeles-Long Beach | 4.3 | 4.1 | 3.9 | 4.5 | 4.4 | 4.1 |
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Phoenix-Mesa | 3.3 | 3.4 | 3.3 | 3.3 | 3.2 | 3.0 |
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San Jose-San Francisco-Oakland | 4.8 | 3.8 | 3.3 | 5.2 | 3.5 | 3.1 |
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Seattle-Tacoma | 4.3 | 5.8 | 4.7 | 4.6 | 5.6 | 4.6 |
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United States Department of Labor
