Comp Costs Tick Up in Q110

Wages and salaries increased 0.4%, while benefits were up 1.1 %, BLS reported.

According to the BLS data, compensation costs for civilian workers increased 1.7 % for the 12-month period ending March 2010, below the 2.1%-increase for the 12-month period ending in March 2009.Wages and salaries increased 1.5% for the current 12-month period, slowing from a 2.2% increase for the prior year. Benefit costs rose 2.2%, compared with a 2% increase for the 12-month period ending March 2009.

Compensation costs for private industry workers increased 1.6%, compared to 1.9% for the 12-month period ending March 2009. The wage and salary series increased 1.5% for the current 12-month period, compared to 2% a year earlier. The cost of benefits increased 2 % for the 12-month period ending March 2010 primarily due to increases in the cost of health benefits and defined benefit retirement plans. In March 2009, benefits increased 1.6%.

Employer costs for health benefits increased 4.5 % for the 12-month period ending March 2010, just below the 4.6% a year earlier.

Among occupational groups, compensation cost increases for private industry workers for the 12-month period ending March 2010 ranged from 1.3% for management, professional, and related occupations to 2.1% for natural resources, construction, and maintenance occupations.Among industries, compensation cost increases for private industry workers for the current 12-month period ranged from 1% for professional and business services to 2.8% for financial activities.

Compensation costs for state and local government workers increased 2% for the 12-month period ending March 2010. Prior published values ranged from 2.3% to 9.6% since the series began in June 1982.

Wages and salaries increased 1.8%. Prior published values ranged from 1.9% to 8.5% since the series began, also in June 1982. Benefit costs increased 2.7%. Prior published values ranged from 1.2% to 8.3% since the series began in June 1990.