Compensation Costs Rise 3.8% in 2024, Slower Than 2023
Compensation costs for civilian workers increased 0.9% in the three months ending in December. In 2024, compensation costs rose 3.8%, with wages up the same amount, compared to the respective 4.2% and 4.3% increases in 2023. Meanwhile, benefit costs grew 3.6% over the year, compared to a 3.8% rise in 2023. Manufacturing compensation costs increased 0.7% in the three months ending in December and are up 3.6% in the past 12 months, with manufacturing wages up 3.8% and benefits up 3.2%.
Private industry compensation costs increased 3.6% over the year, with wages up 3.7% and benefits up 3.3%. Inflation-adjusted compensation costs rose 0.8% in 2024. Within private industry, union workers saw a 5.1% increase in compensation costs, while nonunion workers had a 3.4% rise. State and local government workers experienced a 4.7% increase in compensation costs, with wages up 4.5% and benefits up 4.9%.