|Issue of the Day: Employee Compensation Slows by Nearly 50%|
Published Tuesday, September 15th, 2009
According to a Bureau of Labor Statistics report in June 2009, compensation costs for civilian workers increased 0.4%, seasonally adjusted, for the 3-month period ending in June 2009. For businesses, wages and salaries, comprising 70% of compensation, increased 0.4%. Benefit costs, 30% of compensation, increased 0.3%, a feat considering inflation for that time was nearing -2.1% in July. With healthcare benefits costs climbing despite negative inflation, many employers are passing some of the increased cost onto their employees. In fact many employers are increasing the premiums, annual deductibles, and prescriptions co-pays.
Civilian worker’s compensation wages and salaries costs increased 1.8% (compared to a 3.2% increase in June 2008), and benefits costs rose 1.8% (compared to 2.9%) in the 12 months ending in June 2009. Private industry workers fared worse as wages and salaries increased 1.6% (3.1% in June 2008) and benefits cost increased 1.3% (from 2.6% June 2008) over the same 12 months. Public administration wages and salaries, however, increased 3.0% in June 2009 (3.4% June 2008) and benefits cost rose 3.6% (3.5% June 2008) over the same 12 months.