Employment cost index up 0.7% in Q4

Compensation costs for civilian workers increased 0.7 percent, seasonally adjusted, for the 3-month period ending in December 2020, the U.S. Bureau of Labor Statistics reported today. Wages and salaries increased 0.9 percent and benefit costs increased 0.6 percent from September 2020.

Compensation costs for civilian workers increased 2.5 percent for the 12-month period ending in December 2020 and increased 2.7 percent in December 2019. Wages and salaries increased 2.6 percent over the year and increased 2.9 percent for the 12-month period ending in December 2019. Benefit costs increased 2.3 percent over the year and increased 2.2 percent for the 12-month period ending in December 2019.

Compensation costs for private industry workers increased 2.6 percent over the year. In December 2019, the increase was 2.7 percent. Wages and salaries increased 2.8 percent for the 12-month period ending in December 2020 and increased 3.0 percent in December 2019. The cost of benefits increased 2.1 percent for the 12-month period ending in December 2020 and increased 1.9 percent in December 2019.

Employer costs for health benefits increased 1.9 percent for the 12-month period ending in December 2020.