Magazine article Economic Trends

The Employment Cost Index

Magazine article Economic Trends

The Employment Cost Index

Article excerpt

The Employment Cost Index (ECI) is a quarterly measure of the rate of change in employers' costs for both wages and benefits. For most of the 1980s and early 1990s, benefit costs rose faster than wages. In the mid-1990s, the trend reversed course, and wage increases dominated, but in 2000, benefit costs began to outpace wage growth once again.

In the late 1980s and early 1990s, employers' health insurance costs increased significantly as a share of total benefits because medical care costs were rising steeply. After a few years of relative stability, health insurance costs began escalating rapidly again in 1999, increasing benefits costs for both employers and employees.

In March 2003, wages and salaries accounted for 72.2% of employers' costs for employee compensation (for civilian workers in private industry); benefits were responsible for the remaining 27.8%. Legally required benefits, employers' largest non-wage costs, represented 8.4% of total compensation. Over the last two years, rapid increases in state unemployment insurance costs and workers compensation have substantially increased the share of legally required benefits. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.