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August 01, 2005
Compensation Costs Rise, but Increase in Benefit Costs Eases

Total compensation costs for civilian workers increased 0.7 percent from March to June 2005, the same increase as occurred between December 2004 and March 2005, according to the Bureau of Labor Statistics of the U.S. Department of Labor.

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Benefit costs advanced 0.8 percent for civilian workers in the June 2005 quarter, moderating from the gain of 1.2 percent in the March quarter. Private sector benefit costs rose 0.8 percent for the June quarter, following the 1.1 percent gain in the previous quarter.

Among private industry workers, benefit costs contributed nearly 35 percent of compensation gains during the quarter; compared with nearly 60 percent from December 2004 to March 2005. Health-insurance costs constituted about 10 percent of the compensation gains during the quarter.

Compensation costs for the private sector rose 0.6 percent from March to June 2005, identical to the gain in the prior quarter.

Benefit costs advanced 0.8 percent for civilian workers in the June 2005 quarter, moderating from the gain of 1.2 percent in the March quarter. Private sector benefit costs rose 0.8 percent for the June quarter, following the 1.1 percent gain in the previous quarter.

Benefit costs for state and local government workers increased 1.2 percent in the June quarter, compared with a 1.5 percent gain in the prior quarter.

Wages and salaries for civilian and private industry workers increased 0.6 percent during the June 2005 quarter, the same as in the first quarter of the year. Wages and salaries in state and local government advanced 0.5 percent during the March to June 2005 period, following an increase of 0.8 percent in the previous quarter.

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