Compensation costs for private industry workers increased 4.3 percent in the Phoenix-Mesa, AZ Combined Statistical Area (CSA) for the year ending in March 2026, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Chris Rosenlund noted that one year ago, Phoenix experienced an annual gain of 3.4 percent in compensation costs. (See chart 1 and table 1.) Nationwide, compensation costs rose 3.4 percent in March 2026.

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Chart 1. Twelve-month percent changes in total compensation for private industry workers in the United States and Phoenix, not seasonally adjusted

Quarter	Phoenix	United States
Mar 2024	2.7	4.1
Jun	3.3	3.9
Sep	3.3	3.6
Dec	2.8	3.6
Mar 2025	3.4	3.4
Jun	3.3	3.5
Sep	3.1	3.5
Dec	3.2	3.4
Mar 2026	4.3	3.4

Locally, wages and salaries, the largest component of compensation costs, advanced at a 4.2-percent pace for the 12-month period ended March 2026. (See chart 2.) Nationwide, wages and salaries rose 3.4 percent over the same period.

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Chart 2. Twelve-month percent changes in wages and salaries for private industry workers in the United States and Phoenix, not seasonally adjusted

Quarter	Phoenix	United States
Mar 2024	2.8	4.3
Jun	3.3	4.1
Sep	3.4	3.8
Dec	2.8	3.7
Mar 2025	3.2	3.4
Jun	3.0	3.5
Sep	2.6	3.6
Dec	2.8	3.3
Mar 2026	4.2	3.4

View Chart Data

Chart 3. Twelve-month percent changes in total compensation and wages and salaries for private industry workers by area, not seasonally adjusted, March 2026

Area	Total compensation	Wages and salaries
Houston	0.3	3.4
Minneapolis	1.4	1.0
Dallas	2.3	1.8
Detroit	2.3	3.5
Atlanta	2.5	2.5
Boston	2.8	2.4
Philadelphia	3.1	2.7
Seattle	3.3	2.8
United States	3.4	3.4
New York	3.4	3.2
Los Angeles	3.5	3.1
Washington	3.7	3.8
San Jose	3.8	4.0
Chicago	4.1	4.1
Phoenix	4.3	4.2
Miami	4.7	4.6

The annual increase in compensation costs in Phoenix was 4.3 percent in March 2026, compared to advances that ranged from 3.3 percent to 3.8 percent in the three other metropolitan areas in the West (Los Angeles-Long Beach, San Jose-San Francisco-Oakland, and Seattle-Tacoma). Phoenix’s 4.2-percent gain in wages and salaries over this 12-month period compared to rates ranging from 2.8 percent to 4.0 percent in the three other western localities. (See table 2.)

The Employment Cost Index for June 2026 is scheduled to be released on Friday, July 31, 2026, at 8:30 a.m. (ET).

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 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 Western 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.

Phoenix-Mesa, AZ CSA includes Gila, Maricopa, and Pinal Counties in Arizona.

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