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18-72-CHI
Tuesday, February 06, 2018
Total compensation costs for private industry workers increased 2.4 percent in the Chicago-Naperville-Michigan City, Ill.-Ind.-Wis. metropolitan area for the year ended in December 2017, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that a year earlier, Chicago experienced a gain of 2.9 percent in total compensation costs. Locally, wages and salaries, the largest component of total compensation costs, rose 2.6 percent over the 12-month period ended December 2017. Nationwide, total compensation costs and wages and salaries increased 2.6 percent and 2.8 percent, respectively, over the same period. (See chart 1 and table 1.)
Chicago is 1 of 15 metropolitan areas in the United States, and 1 of 3 areas in the Midwest region of the country, for which locality compensation cost data are now available. Among these 15 largest areas, over-the-year percentage increases in total compensation costs ranged from 6.9 percent in Seattle-Tacoma-Olympia, Wash. to 1.4 percent in both Minneapolis-St. Paul-St. Cloud, Minn.-Wis. and Atlanta-Sandy Springs-Gainesville, Ga.-Ala. in December 2017. For wages and salaries, San Jose-San Francisco-Oakland, Calif. registered the largest annual gain (3.6 percent) among the 15 areas, while wages in Minneapolis registered the smallest annual gain (1.1 percent). (See chart 2.)
Chicago’s annual increase in total compensation costs in December 2017, at 2.4 percent, compared to gains of 2.8 and 1.4 percent, respectively, in Detroit-Warren-Flint, Mich. and Minneapolis, the two other metropolitan areas in the Midwest. Chicago’s 2.6-percent increase in wages and salaries over this 12-month period compared to advances of 3.2 percent in Detroit and 1.1 percent in Minneapolis. (See table 2.)
The Employment Cost Index for March 2018 is scheduled to be released on Friday, April 27, 2018.
The Employment Cost Index (ECI) measures 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 straight-time average hourly earnings 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, work on weekends and holidays, and shift differentials. Production bonuses, incentive earnings, commission payments, and cost-of-living adjustments are included in straight-time earnings, whereas nonproduction bonuses (such as Christmas or year-end bonuses) are excluded. Also excluded are such items as payments-in-kind, free room and board, and tips.
Based on available resources and the existing ECI sample, it was determined that estimates would be published for 15 metropolitan areas. Since the ECI sample sizes by area are directly related to area employment, the areas with the largest private industry employment as of the year 2000 were selected. For each of these areas, 12-month percent changes and associated standard errors were computed for the periods since December 2006.
The metropolitan area definitions of the 15 published localities are listed below.
Definitions of the four geographic regions of the country are noted below.
Information in this release will be made available to sensory impaired individuals upon request. Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.
Area | Total compensation | Wages and salaries | ||||||
---|---|---|---|---|---|---|---|---|
12-month percent changes for period ended- | 12-month percent changes for period ended- | |||||||
March | June | Sep. | Dec. | March | June | Sep. | Dec. | |
United States | ||||||||
2013 | 1.9 | 1.9 | 1.9 | 2.0 | 1.7 | 1.9 | 1.8 | 2.1 |
2014 | 1.7 | 2.0 | 2.3 | 2.3 | 1.7 | 1.9 | 2.3 | 2.2 |
2015 | 2.8 | 1.9 | 1.9 | 1.9 | 2.8 | 2.2 | 2.1 | 2.1 |
2016 | 1.8 | 2.4 | 2.3 | 2.2 | 2.0 | 2.6 | 2.4 | 2.3 |
2017 | 2.3 | 2.4 | 2.5 | 2.6 | 2.6 | 2.4 | 2.6 | 2.8 |
Midwest | ||||||||
2013 | 1.5 | 1.5 | 1.6 | 1.6 | 1.5 | 1.5 | 1.7 | 1.8 |
2014 | 1.7 | 2.1 | 2.2 | 2.1 | 1.6 | 2.0 | 2.0 | 1.7 |
2015 | 2.4 | 1.6 | 1.7 | 1.8 | 2.0 | 1.9 | 2.1 | 2.3 |
2016 | 1.8 | 2.6 | 2.6 | 2.6 | 2.3 | 2.7 | 2.8 | 2.9 |
2017 | 2.8 | 2.3 | 2.2 | 2.2 | 3.2 | 2.4 | 2.2 | 2.2 |
Chicago-Naperville-Michigan City | ||||||||
2013 | 1.7 | 1.9 | 1.3 | 1.6 | 1.4 | 1.8 | 1.4 | 2.2 |
2014 | 1.6 | 2.8 | 3.3 | 3.3 | 1.8 | 2.4 | 2.3 | 1.9 |
2015 | 3.3 | 1.1 | 1.1 | 0.9 | 2.4 | 1.8 | 1.8 | 1.9 |
2016 | 1.3 | 1.9 | 2.4 | 2.9 | 2.0 | 2.0 | 2.6 | 3.0 |
2017 | 2.5 | 2.8 | 2.4 | 2.4 | 2.7 | 2.8 | 2.3 | 2.6 |
Area | Total compensation | Wages and salaries | ||||
---|---|---|---|---|---|---|
12-month percent changes for period ended- | 12-month percent changes for period ended- | |||||
Dec. 2016 | Sep. 2017 | Dec. 2017 | Dec. 2016 | Sep. 2017 | Dec. 2017 | |
United States | 2.2 | 2.5 | 2.6 | 2.3 | 2.6 | 2.8 |
Northeast | 2.5 | 2.8 | 2.6 | 2.9 | 3.0 | 2.7 |
Boston-Worcester-Manchester | 2.3 | 3.0 | 2.4 | 2.9 | 2.8 | 2.2 |
New York-Newark-Bridgeport | 2.3 | 2.9 | 2.4 | 3.3 | 3.2 | 2.4 |
Philadelphia-Camden-Vineland | 2.2 | 2.1 | 2.7 | 2.4 | 1.8 | 2.4 |
South | 1.3 | 2.0 | 2.4 | 1.4 | 2.1 | 2.7 |
Atlanta-Sandy Springs-Gainesville | 3.5 | 2.2 | 1.4 | 4.2 | 2.7 | 1.5 |
Dallas-Fort Worth | 1.4 | 1.4 | 2.4 | 1.5 | 1.9 | 3.2 |
Houston-Baytown-Huntsville | 1.7 | 2.1 | 1.7 | 2.3 | 2.6 | 2.0 |
Miami-Fort Lauderdale-Pompano Beach | 3.4 | 3.7 | 2.2 | 3.6 | 3.9 | 2.3 |
Washington-Baltimore-Northern Virginia | 2.4 | 2.5 | 2.2 | 2.8 | 3.3 | 3.0 |
Midwest | 2.6 | 2.2 | 2.2 | 2.9 | 2.2 | 2.2 |
Chicago-Naperville-Michigan City | 2.9 | 2.4 | 2.4 | 3.0 | 2.3 | 2.6 |
Detroit-Warren-Flint | 1.8 | 2.5 | 2.8 | 2.3 | 2.8 | 3.2 |
Minneapolis-St. Paul-St. Cloud | 0.7 | 1.1 | 1.4 | -0.2 | 1.0 | 1.1 |
West | 2.6 | 3.4 | 3.3 | 2.8 | 3.4 | 3.3 |
Los Angeles-Long Beach-Riverside | 2.6 | 3.6 | 3.7 | 3.1 | 3.2 | 3.3 |
Phoenix-Mesa-Scottsdale | 3.0 | 2.8 | 2.7 | 2.8 | 3.0 | 3.1 |
San Jose-San Francisco-Oakland | 2.6 | 2.9 | 3.4 | 2.9 | 2.9 | 3.6 |
Seattle-Tacoma-Olympia | 2.8 | 7.6 | 6.9 | 3.7 | 3.8 | 3.4 |
Last Modified Date: Tuesday, February 06, 2018