(January 31, 2008) – The Q4/07 Employment Cost Index, released today, shows that total compensation costs for civilian workers increased 0.8 percent, seasonally adjusted, in Q4/07. Over the year, compensation costs rose 3.3 percent.
As you can see in the chart, wages and salaries after adjusting for inflation fell for the quarter as a result of the sharp increases in energy and food prices. This may be one reason the “I am a Washington outsider” strategy is working so well in the primaries this year.
The report also shows that, apparently, government workers did not get the memo. State and local government compensation increased 4.1%, compared with 3.0% in private industry. Government worker benefit costs increased 5.5%, more than double the 2.4% in private industry.
There is an election in November. Should we mention this to our public servants?
JR
