Compensation costs for private industry workers increased 3.9 percent in the Washington-Baltimore-Arlington, DC-MD-VA-WV-PA Combined Statistical Area (CSA) for the year ending in September 2026, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Lori Keller noted that one year ago, Washington experienced an annual gain of 2.2 percent in compensation costs. (See chart 1 and table 1.) Nationwide, compensation costs rose 3.4 percent in September 2026.

Locally, wages and salaries, the largest component of compensation costs, advanced at a 4.0-percent pace for the 12-month period ended September 2026. (See chart 2.) Nationwide, wages and salaries rose 3.1 percent over the same period.

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 4.7 percent in Seattle-Tacoma to 2.2 percent in Minneapolis-St. Paul in September 2026; for wages and salaries Seattle registered the largest increase (4.1 percent), and Minneapolis registered the smallest (2.0 percent). (See chart 3.)

The annual increase in compensation costs in Washington was 3.9 percent in September 2026, compared to advances that ranged from 3.5 percent to 2.6 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 4.0-percent gain in wages and salaries over this 12-month period compared to rates ranging from 3.4 percent to 2.2 percent in the four other southern localities. (See table 2.)

The Employment Cost Index news release for December 2026 is scheduled to be published on Friday, January 29, 2027, at 8:30 a.m. (ET).

Technical Note

Locality compensation costs are part of the national Employment Cost Index (ECI), which measures quarterly changes in labor 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 Employment Cost Index 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 Combined Statistical Area (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, Orange, Prince William, Rappahannock, Spotsylvania, Stafford, and Warren Counties in Virginia; Berkeley, Hampshire, Jefferson, and Morgan Counties in West Virginia; and Franklin County in Pennsylvania.

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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 (%)
	Mar.	Jun.	Sep.	Dec.	Mar.	Jun.	Sep.	Dec.
United States
2022	4.8	5.5	5.2	5.1	5.0	5.7	5.2	5.1
2023	4.8	4.5	4.3	4.1	5.1	4.6	4.5	4.3
2024	4.1	3.9	3.6	3.6	4.3	4.1	3.8	3.7
2025	3.4	3.5	3.5	3.4	3.4	3.5	3.6	3.3
2026	3.4	3.3	3.4		3.4	3.1	3.1
South
2022	4.6	5.8	5.0	5.0	4.8	5.9	5.0	5.1
2023	5.2	4.4	4.6	4.4	5.4	4.6	4.8	4.6
2024	4.3	3.7	3.3	3.3	4.6	3.9	3.4	3.4
2025	3.3	3.5	3.6	3.5	3.3	3.5	3.8	3.6
2026	3.4	3.5	3.3		3.5	3.5	3.1
Washington-Baltimore-Arlington
2022	3.5	4.2	4.4	4.3	3.5	3.8	4.1	4.3
2023	5.5	5.2	5.2	4.4	5.7	5.7	5.5	4.9
2024	4.5	4.3	3.6	3.7	5.1	4.9	4.0	3.9
2025	2.6	2.5	2.2	2.7	2.5	2.1	1.9	2.4
2026	3.7	3.6	3.9		3.8	3.8	4.0

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 (%)
	Sep. 2025	Jun. 2026	Sep. 2026	Sep. 2025	Jun. 2026	Sep. 2026
United States	3.5	3.3	3.4	3.6	3.1	3.1
Northeast	3.6	3.0	3.0	3.6	2.7	2.6
Boston-Worcester-Providence	3.3	2.8	2.7	3.2	2.3	2.4
New York-Newark	3.8	3.3	3.1	3.9	3.1	2.7
Philadelphia-Reading-Camden	3.4	3.3	3.4	3.4	3.1	3.2
South	3.6	3.5	3.3	3.8	3.5	3.1
Atlanta-Athens-Clarke County-Sandy Springs	2.9	2.7	2.6	2.8	2.6	2.5
Dallas-Fort Worth	3.7	2.7	3.1	3.5	2.5	3.0
Houston-Pasadena	4.5	2.8	2.8	5.0	2.7	2.2
Miami-Port St. Lucie-Fort Lauderdale	5.7	3.6	3.5	5.9	3.5	3.4
Washington-Baltimore-Arlington	2.2	3.6	3.9	1.9	3.8	4.0
Midwest	3.4	3.0	3.2	3.5	2.9	3.1
Chicago-Naperville	4.0	3.9	3.5	3.9	3.9	3.5
Detroit-Warren-Ann Arbor	2.1	3.4	3.1	3.3	3.2	3.0
Minneapolis-St. Paul	3.7	1.7	2.2	3.6	1.3	2.0
West	3.5	3.6	3.9	3.3	3.2	3.5
Los Angeles-Long Beach	3.4	3.3	4.2	3.4	2.8	3.9
Phoenix-Mesa	3.1	4.2	4.0	2.6	4.1	3.9
San Jose-San Francisco-Oakland	3.7	3.6	3.4	3.9	3.5	3.0
Seattle-Tacoma	4.7	4.0	4.7	4.3	3.5	4.1