Benefit Costs Increased 3% in 2011

Wages and salaries (which make up about 70% of compensation costs) also increased 0.4%, and benefits increased 0.6%.  

Compensation costs for civilian workers increased 2.0% for the 12-month period ending December 2011, the same as the increase a year earlier in December 2010. Wages and salaries increased 1.4% for the current 12-month period. Benefit costs increased 3.2% for the 12-month period ending December 2011.   

Compensation costs for private industry workers increased 2.2% over the year. Wages and salaries increased 1.6% for the current 12-month period, compared to 1.8% for the 12-month period ending December 2010. The increase in the cost of benefits was 3.6% for the 12-month period ending December 2011, higher than the 2010 increase of 2.9%. Employer costs for health benefits increased  3.5% for the 12-month period ending December 2011, lower than the December 2010 increase of  5.0%.  

Among occupational groups, compensation cost increases for private industry workers for the 12-month period ending December 2011 ranged from 1.7% for service occupations to 2.4% for production, transportation and material moving occupations. Among industry supersectors, compensation cost increases for private industry workers for the current 12-month period ranged from 1.0% for leisure and hospitality to 2.8% for manufacturing.  

Compensation costs for state and local government workers decelerated over the year. In December 2011, the increase for the 12-month period was 1.3%, compared to 1.8% for 2010. Wages and salaries increased 1.0% for the 12-month period ending December 2011. Benefit costs increased 2.1% in December 2011.