Employment Cost Index-June 2004 — 2004-07-29

Total compensation costs for civilian workers increased 0.9 percent from March to June 2004, seasonally adjusted, moderating from the 1.1 percent gain from December 2003 to March 2004, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Wage and salary costs increased 0.6 percent and benefit costs rose 1.8 percent, continuing to rise sharply. The Employment Cost Index (ECI), a component of the National Compensation Survey, measures quarterly changes in compensation costs, which include wages, salaries, and employer costs for employee benefits for nonfarm private and State and local government workers. Rises in benefit costs accounted for a little over half of the increase in compensation costs for civilian workers during the March-to- June period. Among private industry workers, benefit costs were one-half of compensation gains during the quarter, with health insurance and defined benefit retirement costs combined accounting for one-quarter of the rise in compensation costs.