U.S. compensation costs up 0.9% in Q4, up 4.2% in 2023

Compensation costs for civilian workers increased 0.9%, seasonally adjusted, for the 3-month
period ending in December 2023, according to a U.S. Bureau of Labor Statistics report posted Wednesday (Jan. 31).

Wages and salaries also rose 0.9% and benefit costs increased 0.7% from September 2023, the report noted. Inflation-adjusted wages and salaries increased 0.9% for the 12 months ending December 2023. Inflation-adjusted benefit costs in the private sector increased 0.2% over that same period.

Compensation costs for civilian workers increased 4.2% for the 12-month period ending in December 2023 and increased 5.1% in December 2022. Wages and salaries increased 4.3% for the 12-month period ending in December 2023, and increased 5.1% for the 12-month period ending in December 2022.

Benefit costs increased 3.8% over the year and increased 4.9% for the 12-month period ending in December 2022.

Compensation costs for private industry workers increased 4.1% over the year. In December 2022, the increase was 5.1%. Wages and salaries increased 4.3% for the 12-month period ending in December 2023 and increased 5.1% in December 2022.

The cost of benefits increased 3.6% for the 12-month period ending in December 2023 and increased 4.8% in December 2022. Inflation-adjusted (constant dollar) compensation costs for private industry increased 0.7% for the 12-month period ending in December 2023.

Within the private industry, compensation costs increased 4.5% for union workers and 4% for
non-union workers for the 12-month period ending in December 2023. Wages and salaries increased 5.4% for union workers and 4.2% for non-union workers for the 12-month period ending in December 2023. Benefit costs increased 3.4% for union workers and 3.6% for non-union workers for the period ending in December 2023.

Compensation costs for state and local government workers increased 4.6% for the 12-month period ending in December 2023 and increased 4.8% in the 12-month period ending December 2022. Wages and salaries increased 4.7% for the 12-month period ending in December 2023 and increased 4.7% a year ago. Benefit costs increased 4.6% for the 12-month period ending in December 2023. The prior year’s increase was 5%.