By Brai Odion-Esene and Ian McKendry
WASHINGTON (MNI) – Compensation costs for U.S. civilian workers
increased as expected in the second quarter, as the Employment Cost
Index rose +0.5%, but grew at the slowest pace since early 2010 for the
12-month period ending June 2012, the Bureau of Labor Statistics
reported Tuesday.
The median estimate in an MNI survey of economists had centered
around a 0.5% increase, with forecasts ranging from +0.2% to +0.8%.
The ECI rose 1.7% year-over-year, less than the 1.9% rise in the
previous quarter and the lowest increase since March 2010.
Wages and salaries — which make up 70% of the index — rose by
0.4% in the second quarter after a 0.5% increase in Q1. Benefits, making
up the remaining 30%, were up 0.6%, a slight improvement over the first
quarter.
While civilian wages again saw a year-over-year increase of 1.7%,
benefit costs rose at a lesser pace, up 2.1% y/y in the second quarter
vs. a 2.7% rise in the first.
Stagnating labor market conditions so far in 2012 were represented
in the private industry data, with total compensation rising by 0.5%, a
small improvement over +0.4% in Q1. There was a big drop-off on a
year-over-year basis, up 1.8% after a 2.1% rise in the first quarter.
Private sector wages and salaries rose by 0.4% in Q2 and +1.8% over
12 months, while benefits were up 0.6% in Q2 and +1.9% year-over-year —
nowhere near the 2.8% y/y increase seen in Q1.
Employer costs for health benefits decelerated over the year to a
2.4% increase, down from the June 2011 increase of 3.6%.
In the state and local government sector, compensation costs were
up 0.5% in Q2, down from +0.7% the previous quarter. On a year-over-year
basis, compensation was up 1.6%.
Wages were up 0.3% in the second quarter after increasing by 0.4%
in the first, and rose by 1.1% vs. June 2011. Benefits rose by 0.9%
after a 1.1% increase in Q1, up 2.7% y/y.
** MNI Washington Bureau: (202) 371-2121 **
[TOPICS: MAUDS$,M$U$$$,MT$$$$]