(202) 691-5902 In This Release Is Embargoed — 2005-07-29

Total compensation costs for civilian workers increased 0.7 percent from March to June 2005, seasonally adjusted, the same increase as occurred between December 2004 and March 2005, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Benefit costs between March and June rose 0.8 percent, compared with the gain for wages and salaries of 0.6 percent. 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 civilian workers (nonfarm private and State and local government). Increases in benefit costs accounted for over 35 percent of the rise in compensation costs for civilian workers from March to June 2005. Among private industry workers, benefit costs contributed nearly 35 percent of compensation gains during the quarter; compared with nearly 60 percent from December 2004 to March 2005.