Compensation costs for civilian workers increased by 0.9% for the three-month period ending in December 2023, the US Bureau of Labor Statistics reported Jan. 31. Wages and salaries rose by 0.9%, while benefit costs increased by 0.7% from September 2023.

The increase in compensation costs was the lowest since the second quarter of 2021, when they rose 0.7%.

Over the 12-month period ending in December 2023, compensation costs for civilian workers increased by 4.2%, marking a slight decrease from the 5.1% increase observed in December 2022. Wages and salaries saw a 4.3% increase for the same period in 2023, down from the 5.1% increase in December 2022. Benefit costs rose by 3.8% over the year, compared to a 4.9% increase for the 12-month period ending in December 2022.

Similarly, compensation costs for private industry workers increased by 4.1% over the year, with wages and salaries experiencing a 4.3% rise. Benefit costs increased by 3.6% for the 12-month period ending in December 2023, compared to a 4.8% increase in December 2022.

Adjusted for inflation, costs for private industry workers increased by 0.7% for the 12-month period ending in December 2023. Adjusted wages and salaries increased by 0.9%, while adjusted benefit costs rose by 0.2% over the same period.

Within private industry, compensation costs increased by 4.5% for union workers and by 4.0% for nonunion workers for the 12-month period ending in December 2023. Wages and salaries increased by 5.4% for union workers and by 4.2% for non-union workers during the same period. Benefit costs rose by 3.4% for union workers and by 3.6% for nonunion workers for the period ending in December 2023.

Compensation costs for state and local government workers increased by 4.6% for the 12-month period ending in December 2023, slightly lower than the 4.8% increase observed in the 12-month period ending December 2022.

-Sanestina Hunter