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BLS: Civilian Worker Pay Costs Climbed 0.8% Through September 2026
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Compensation costs for civilian workers increased 0.8 percent, seasonally adjusted, for the three-month period ending in September 2026, the U.S. Bureau of Labor Statistics reported Friday, October 30, 2026, in its quarterly Employment Cost Index news release (USDL-26-1620). Wages and salaries increased 0.7 percent and benefit costs increased 0.9 percent from June 2026.
For the 12-month period ending in September 2026, compensation costs for civilian workers increased 3.4 percent, not seasonally adjusted. Wages and salaries increased 3.1 percent and benefit costs increased 3.9 percent over the year. The release’s Table A shows the 12-month civilian compensation change at 3.4 percent in June 2026 and 3.5 percent in September 2025, and the three-month change at 0.9 percent in June 2026. On a constant-dollar basis, civilian compensation decreased 0.4 percent over the 12 months ended September 2026, with wages and salaries down 0.6 percent and benefits up 0.1 percent.
Table A of the release summarizes the major September 2026 series (dashes indicate data not available):
| Series | 3-month, seasonally adjusted | 12-month, current dollar | 12-month, constant dollar |
|---|---|---|---|
| Civilian workers: Compensation | 0.8 | 3.4 | -0.4 |
| Civilian workers: Wages and salaries | 0.7 | 3.1 | -0.6 |
| Civilian workers: Benefits | 0.9 | 3.9 | 0.1 |
| Private industry: Compensation | 0.8 | 3.4 | -0.4 |
| Private industry: Wages and salaries | 0.8 | 3.1 | -0.6 |
| Private industry: Benefits | 0.9 | 3.9 | 0.2 |
| Private industry: Health benefits | — | 6.4 | — |
| State and local government: Compensation | 0.6 | 3.5 | -0.3 |
| State and local government: Wages and salaries | 0.6 | 3.2 | -0.5 |
| State and local government: Benefits | 0.7 | 3.8 | 0.1 |
Compensation costs for private industry workers increased 0.8 percent, seasonally adjusted, in the three months ended September 2026, with wages and salaries up 0.8 percent and benefit costs up 0.9 percent from June 2026. Over 12 months, private compensation rose 3.4 percent, wages and salaries rose 3.1 percent, and benefits rose 3.9 percent, while inflation-adjusted wages and salaries decreased 0.6 percent. Private-industry health benefit costs rose 6.4 percent over the 12 months ended September 2026, after increases of 6.0 percent in June 2026 and 6.1 percent in September 2025.
Within private industry, compensation costs for union workers increased 4.3 percent over the 12-month period, versus 3.3 percent for nonunion workers. Wages and salaries rose 4.3 percent for union workers and 3.0 percent for nonunion workers, and benefit costs rose 4.3 percent for union workers and 3.9 percent for nonunion workers.
Industry, Occupation, and Regional Detail
Table 5 shows 12-month private-industry compensation increases of 5.8 percent in aircraft manufacturing and 5.1 percent in utilities, alongside 3.9 percent in education and health services, 3.7 percent in transportation and warehousing, 2.7 percent in wholesale trade, and 2.5 percent in leisure and hospitality. By occupational group, compensation rose 3.6 percent for management, professional, and related occupations; 3.5 percent for natural resources, construction, and maintenance; 3.3 percent for production, transportation, and material moving; 3.1 percent for service occupations; and 2.8 percent for sales and office, with sales and related occupations at 2.3 percent.
By Census region, Table 6 shows 12-month private compensation increases of 3.9 percent in the West, including 4.3 percent in the Pacific division, 3.3 percent in the South, 3.2 percent in the Midwest, and 3.0 percent in the Northeast.
Table 13 covers the 15 largest Combined Statistical Areas and Metropolitan Statistical Areas. It shows 12-month total compensation changes including 4.7 percent in Seattle-Tacoma, 4.2 percent in Los Angeles-Long Beach, 4.0 percent in Phoenix-Mesa, 3.9 percent in Washington-Baltimore-Arlington, 3.5 percent in both Miami and Chicago, 3.1 percent in New York-Newark, 2.6 percent in Atlanta, and 2.2 percent in Minneapolis-St. Paul. A table footnote states that area definitions are based on Office of Management and Budget Bulletin No. 23-01, dated July 21, 2023, beginning with the June 2025 release.
Compensation costs for state and local government workers increased 0.6 percent, seasonally adjusted, in the three months ended September 2026, with wages and salaries up 0.6 percent and benefit costs up 0.7 percent from June 2026. Over 12 months, state and local government compensation rose 3.5 percent, wages and salaries rose 3.2 percent, and benefits rose 3.8 percent, while inflation-adjusted wages and salaries decreased 0.5 percent. Table 7 shows 12-month compensation increases of 3.9 percent in hospitals, 3.8 percent for service occupations, and 3.5 percent in elementary and secondary schools.
Survey Method and Scheduled Changes
The Employment Cost Index measures “the change in the cost of labor, free from the influence of employment shifts among occupations and industries,” according to the release’s technical note. Table footnotes state that civilian workers cover the private nonfarm economy except private households, plus the public sector except the federal government, and that total compensation includes wages, salaries, and employer costs for employee benefits. Data for the reference period came from a probability sample of approximately 28,000 occupational observations from about 6,600 private-industry establishments and approximately 7,300 occupational observations from about 1,400 state and local government establishments.
The Employment Cost Index news release for December 2026 is scheduled for Friday, January 29, 2027, at 8:30 a.m. ET. A notice in the release states that beginning with the publication of ECI data for December 2026, the index will introduce updated employment weights and remove workers’ compensation costs.
