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Tuesday, May 6, 2014

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Changing Compensation Costs in the Washington-Baltimore-Northern Virginia Metropolitan Area – March 2014

Total compensation costs for private industry workers increased 1.5 percent in the Washington-Baltimore-Northern Virginia, D.C.-Md.-Va.-W.Va., metropolitan area for the year ended March 2014, the U.S. Bureau of Labor Statistics reported today. Sheila Watkins, the Bureau’s regional commissioner, noted that one year ago, Washington-Baltimore experienced an annual gain of 2.2 percent in total compensation costs. Locally, wages and salaries, the largest component of total compensation costs, advanced at a 1.4-percent pace for the 12-month period ended March 2014. Nationwide, total compensation costs rose 1.7 percent, and wages and salaries, also 1.7 percent, over the year. (See chart 1 and table 1.)

Chart 1. Twelve-month percent changes in the Employment Cost Index for total compensation and for wages and salries, private industry workers, United States and the Washington-Baltimore area, not seasonally adjusted, March 2012 to March 2014

Washington-Baltimore is 1 of 15 metropolitan areas in the United States, and 1 of 5 areas in the South region of the country, for which locality compensation cost data are now available. Washington-Baltimore’s over-the-year increase of 1.5 percent in total compensation ranked in the lowest third of the 15 published areas, placing 11th of the 15 areas. Among the other areas, percent changes in total compensation ranged from 3.6 percent in San Jose to 1.2 percent in Atlanta from March 2013 to March 2014. With an increase of 1.4 percent, Washington-Baltimore tied for 8th, along with Minneapolis and Philadelphia, in wage and salary gains over the year. Growth rates in wages and salaries among the other metropolitan areas ranged from 3.4 percent in San Jose to 0.7 percent in Atlanta. (See chart 2.)

Chart 2. Percent change in the Employment Cost Index for total compensation and for wages and salaries, private industry workers, United States and localities, not seasonally adjusted, March 2013 to March 2014

When compared with the other four metropolitan areas in the South, the annual increase in total compensation costs in Washington-Baltimore in March 2014 (1.5 percent) was below those of Dallas (2.2 percent), Houston (1.8 percent), and Miami (1.7 percent), but above Atlanta’s (1.2 percent). Similarly, Washington-Baltimore’s 1.4-percent gain in wages and salaries over the 12-month period was well below those of Dallas (2.7 percent), Houston (2.4 percent), and Miami (2.3 percent), but above Atlanta’s (0.7 percent). (See table 2.)

Locality compensation costs are part of the national Employment Cost Index (ECI), which measures quarterly changes in total compensation costs, including wages, salaries and employer costs for employee benefits. In addition to the 15 locality estimates provided in this release, ECI data for the nation, 4 geographical regions, and 9 geographical divisions are available. (Geographical definitions for the metropolitan areas mentioned in this release are included in the Technical Note.)

In addition to the geographic data, a comprehensive national report is available that provides data by industry, occupational group, and union status, as well as for both private, and state and local government employees. The ECI for the nation, regions, and divisions for June 2014 will be released on Thursday, July 31, 2014, at 8:30 a.m. (ET). Information from the Employment Cost Index program is available to sensory impaired individuals upon request. Voice phone: (202) 691-5200, Federal Relay Service: (800) 877-8339.

Corrections to ECI Data Series

Some Employment Cost Index data from September 2012 through March 2013 were corrected on June 26, 2013. (Seasonally adjusted estimates were subject to corrections back to March 2008.) For further information see:

www.bls.gov/bls/eci_corrections_043013.htm

Technical Note

The Employment Cost Index (ECI) is a measure of the change in the cost of labor, free from the influence of employment shifts among occupations and industries. The total compensation series includes changes in wages and salaries and employer costs for employee benefits.

Wages and salaries are defined as straight-time average hourly earnings or, for workers not paid on an hourly basis, straight-time earnings divided by the corresponding hours. Straight-time wage and salary rates are total earnings before payroll deductions, excluding premium pay for overtime, work on weekends and holidays, and shift differentials. Production bonuses, incentive earnings, commission payments, and cost-of-living adjustments are included in straight-time earnings, whereas nonproduction bonuses (such as Christmas or year-end bonuses) are excluded. Also excluded are such items as payments-in-kind, free room and board, and tips.

Selection of areas

Based on available resources and the existing ECI sample, it was determined that estimates would be published for 14 metropolitan areas. Since the ECI sample sizes by area are directly related to area employment, the areas with the largest private industry employment as of the year 2000 were selected. For each of these areas, 12-month percent changes and associated standard areas were computed for the periods since December 2006. (Note: The Seattle-Tacoma-Olympia area was added to the list in September 2009 to make a total of 15 metropolitan areas.)

The metropolitan area definitions of the 15 published localities are listed below.

Definitions of the four geographic regions of the country are noted below.

Table 1. Employment Cost Index for compensation and for wages and salaries, private industry workers, United States, South region, and the Washington-Baltimore area, not seasonally adjusted
Area Total compensation 12-month percent changes for period ended― Wages and salaries 12-month percent changes for period ended―
March June September December March June September December
United States

2010

1.6 1.9 2.0 2.1 1.5 1.6 1.6 1.8

2011

2.0 2.3 2.1 2.2 1.6 1.7 1.7 1.6

2012

2.1 1.8 1.9 1.8 1.9 1.8 1.8 1.7

2013

1.9 1.9 1.9 2.0 1.7 1.9 1.8 2.1

2014

1.7 1.7
South

2010

1.5 1.7 1.7 1.9 1.4 1.5 1.4 1.7

2011

1.7 2.1 2.0 2.0 1.6 1.8 1.9 1.6

2012

2.3 2.2 2.2 2.3 2.0 2.0 2.0 2.3

2013

2.2 2.1 2.1 2.0 2.3 2.2 2.0 2.0

2014

1.7 1.7
Washington-Baltimore-Northern Virginia

2010

1.7 1.9 1.9 2.0 1.6 1.3 1.5 1.8

2011

1.6 1.5 1.7 1.5 1.5 1.3 1.8 1.1

2012

1.8 2.0 1.6 1.4 1.4 1.9 1.2 1.1

2013

2.2 1.6 1.7 1.7 2.2 1.5 1.6 1.8

2014

1.5 1.4
Table 2. Employment Cost Index for compensation and for wages and salaries, private industry workers, United States, geographical regions, and localities, not seasonally adjusted
Area Total compensation Wages and salaries
12-month percent changes for period ended― 12-month percent changes for periodended―
March 2013 December 2013 March 2014 March 2013 December 2013 March 2014

United States

1.9 2.0 1.7 1.7 2.1 1.7

Northeast

1.9 2.0 1.5 1.6 1.8 1.5

Boston-Worcester-Manchester

1.6 2.0 2.0 1.5 2.2 2.2

New York-Newark-Bridgeport

2.2 1.8 1.4 1.7 1.3 1.2

Philadelphia-Camden-Vineland

2.3 2.2 1.6 2.5 1.7 1.4

South

2.2 2.0 1.7 2.3 2.0 1.7

Atlanta-Sandy Springs-Gainesville

4.3 2.0 1.2 4.1 1.5 0.7

Dallas-Fort Worth

1.6 3.3 2.2 1.8 3.5 2.7

Houston-Baytown-Huntsville

2.0 2.0 1.8 2.1 2.3 2.4

Miami-Fort Lauderdale-Pompano Beach

1.9 1.9 1.7 1.8 2.4 2.3

Washington-Baltimore-Northern Virginia

2.2 1.7 1.5 2.2 1.8 1.4

Midwest

1.5 1.6 1.7 1.5 1.8 1.6

Chicago-Naperville-Michigan City

1.7 1.6 1.6 1.4 2.2 1.8

Detroit-Warren-Flint

1.9 1.7 1.8 2.5 2.0 1.1

Minneapolis-St. Paul-St. Cloud

1.4 2.0 1.6 1.2 1.6 1.4

West

1.6 2.4 2.1 1.5 2.4 2.0

Los Angeles-Long Beach-Riverside

2.0 1.7 1.3 1.7 1.7 1.1

Phoenix-Mesa-Scottsdale

0.9 1.5 1.4 2.1 2.0 1.2

San Jose-San Francisco-Oakland

2.7 2.6 3.6 2.8 2.4 3.4

Seattle-Tacoma-Olympia

3.3 1.7 1.7 2.1 1.8 1.7

Last Modified Date: May 6, 2014