Cost of Benefits Increased to 4% in Past Year
Wages and salaries (which make up about 70% of compensation costs) increased 0.4%, and benefits (which make up the remaining 30% of compensation) increased 1.3%.
Compensation costs for civilian workers increased 2.2% for the 12-month period ending June 2011. A year earlier—in June 2010—the increase was 1.9%. Wages and salaries increased 1.6% for the current 12-month period; the same as the June 2010 increase. Benefit costs accelerated to 3.6%, up from 2.5% for the 12-month period ending June 2010.
Compensation costs for private industry workers increased 2.3% over the year, compared to the 1.9% increase for the previous 12-month period. The wage and salary series increased 1.7% for the current 12-month period. The change for the 12-month period ending June 2010 was 1.6%. The increase in the cost of benefits jumped to 4% for the 12-month period ending June 2011, higher than the June 2010 increase of 2.4%. Employer costs for health benefits increased 3.6% for the 12-month period ending June 2011. In June 2010, the 12-month percent change was 5%.
Among occupational groups, compensation cost increases for private industry workers for the 12-month period ending June 2011 ranged from 1.8% for service occupations to 2.7% for production, transportation and material moving occupations.
Among industry supersectors, compensation cost increases for private industry workers for the current 12-month period ranged from 1.1% for leisure and hospitality to 3.3% for manufacturing. Since September 2005, estimates for manufacturing have ranged from 1% in December 2009 to 3.2% in both September 2005 and December 2005.
State and Local Government Workers
Compensation costs for State and local government workers increased 1.7% for the 12-month period ending June 2011, which was the same as the increase for the 12-month period ending June 2010, according to the BLS report.
Values for this series—which began in June 1982—have ranged from 1.7% in both June 2010 and the current reference period to 9.6% in June 1982. Wages and salaries increased 1.2% for the 12-month period ending June 2011. A year earlier the increase was 1.3%.
Prior values for this series, which also began in June 1982, ranged from 1.2% for the past four quarters to 8.5% in June 1982. Benefit costs increased 3%; in June 2010 the increase was 2.5%. Prior values for this series, which began in June 1990, ranged from 1.2% in December 1997 to 8.3% in June 1990.
The BLS report is at http://www.bls.gov.You Might Also Like:

Financial Wellness Programs Boost Engagement and Loyalty


Large Employers Revamping Health Care Cost Reduction Strategies
Employers expect the cost of offering health care services to increase for the fifth consecutive year, according to the Large...