Benefit Costs Rise Faster Than Salaries

Benefit costs in private industry continue to rise faster than salaries, according to the Employment Cost Index released by the U.S. Dept. of Labor's Bureau of Labor Statistics (BLS, 2004).

According to the Index, benefit costs for private industry workers increased 6.4% for the year ended December 2003. This compares to a 4.7% increase for a similar period one year earlier. Meanwhile, total compensation increased 4% for the most recent period, lagging behind benefit costs by 2.4%. The BLS attributed rising benefit costs primarily to increases in health insurance costs for employers.