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Currents in Compensation and Benefits

SALARY AND WAGE TRENDS Employee compensation costs average $21.16 per hour. In March 2000, employer costs for employee compensation for civilian workers (private industry and state and local government) in the United States averaged $21.16 per hour worked, the U.S. Department of Labor’s Bureau of Labor Statistics reported recently. Wages and salaries, which averaged $15.36, accounted for approximately 73% of these costs, whereas benefits, which averaged $5.80, accounted for the remaining 27%. Legally required benefits averaged $1.67 per hour (7.9% of total compensation), representing the largest nonwage employer cost. Employer costs for paid leave benefits averaged $1.42 (6.7%), insurance benefits averaged $1.36 (6.4%) and retirement and savings benefits averaged $0.77 (3.6%) per hour worked. In March 2000, private industry employer compensation costs averaged $19.85 per hour worked. Wages and salaries averaged $14.49 per hour (73%), whereas benefits averaged $5.36 (27%). Compensation costs varied by industry, occupational group, region, establishment size and worker characteristics (bargaining status and full-/part-time status). Average employer compensation costs were $23.55 per hour in goods-producing industries and $18.72 per hour in service-producing industries. Among industry groups, average compensation costs ranged from $10.99 in retail trade to $26.97 in finance, insurance and real estate. Average compensation costs were $24.19 per hour for white-collar occupations $18.73 for blue-collar occupations and $9.72 for service occupations. Benefits, however, accounted for a greater proportion of compensation costs for blue-collar occupations (30.6%) than for whitecollar (26.0%) and service occupations (22.2%). In March 2000, average employer compensation costs were $25.88 per hour for union workers and $19.07 for nonunion workers. Benefits represented a greater proportion of compensation costs for union workers (34.8%) than for nonunion workers (25.6%). These compensation cost differences reflect variation in the distribution of union and nonunion workers among occupations, industries and establishments of different sizes. Among the four regions, compensation costs ranged from $17.81 per hour in the South to $22.67 in the Northeast. The proportion of compensation represented by benefits ranged from 26.0% in the West to 27.8% in the Northeast. Compensation costs increased with establishment size. These costs ranged from an average of $17.16 per hour in establishments with fewer than 100 workers to $26.93 in establishments with 500 or more workers. The proportion of compensation costs represented by benefits also increased with establishment size, from 24.5% in establishments with fewer than 100 workers to 30.6% in establishments with 500 or more workers. Compensation costs for full-time workers in private industry averaged $22.62 per hour compared with $10.75 for part-time workers. Benefit costs represented a greater proportion of compensation costs for full-time workers than for part-time workers (28.2% compared with 19.0%). Workers are classified as full-time or part-time according to the practices of surveyed establishments. Part-time employees are typically scheduled to work fewer hours than full-time employees do in the same work activity. For additional information, call 202-691-5902 or go to http://stats.bls.gov/ecthome.htm.