| Soaring benefit costs fueled the sharp 1.5 percent, seasonally adjusted gain in private industry compensation costs in the first quarter — the largest increase in more than 17 years, according to data released by the Labor Department’s Bureau of Labor Statistics.
The employment cost index showed that compensation costs (wages and salaries plus benefits) in private industry rose 4.6 percent in the year ending in March, the largest gain since a 4.6 percent increase in the year ending in December 1990.
Private-sector benefit costs shot up 2.3 percent in the quarter, the largest increase in more than 12 years. For the year ending in March, benefit costs jumped 5.5 percent, the greatest increase since a 5.8 percent advance in the year ending in June 1993.
Wages and salaries among private industry nonunion employees rose 4.4 percent in the year ending in March, compared with a 2.7 percent gain for union workers. |
