Private Industry Compensation Costs on the Rise
Compensation costs for private industry employees are going up. According to the Bureau of Labor Statistics, the compensation costs for private industry workers rose 2.1 percent over a 12 month period, ending June 2011. When compared to the compensation costs measured after a 12 month period in 2010, the cost rose only 1.9 percent.
The graph below looks at private industry workers by occupational group and by industry.
Some occupational groups didn’t see much change relative to the year before. Private industry workers in the service occupations only saw a 1.8 percent increase in June 2011 after a 12 month period, compared to the 1.6 percent increase for the 12 month period ending June 2010.
On the high end of occupational groups – production, transportation and material moving occupations saw the largest cost increases at 2.7 percent for the 12 month period ending June 2011.
Looking at worker demographics by industry, compensation cost increases for private industry workers in leisure and hospitality (for June 2011, after a 12-month period) saw less change than a year earlier in 2010. On the opposite end, manufacturing experienced a high 3.3 percent increase in compensation cost.
“The wage and salary series increased 1.7 percent for the current 12-month period. The change for the 12-month period ending June 2010 was 1.6 percent. The increase in the cost of benefits jumped to 4.0 percent for the 12-month period ending June 2011, higher than the June 2010 increase of 2.4 percent. Employer costs for health benefits increased 3.6 percent for the 12-month period ending June 2011. In June 2010, the 12-month percent change was 5.0 percent,” the B.L.S. reported