Employee compensation costs, which include both wages and benefits, increased 3.8% for U.S. workers for the 12-month period that ended in December 2024, the U.S. Bureau of Labor Statistics reported on Friday.
The percentage increase was slightly less than the prior year, when compensation costs increased 4.2% for all workers during the 12-month period that ended in December 2023.
Compensation for state and local government workers increased 4.7% in 2024, outpacing compensation costs for private industry workers, which increased 3.6% in 2024. Within private industry, compensation costs increased 5.1% for union workers and 3.4% for non-union workers for the same 12-month period ending in December 2024.
These 2024 percentage increases for these subgroups were less than in 2023 when compensation costs increased 4.6% for state and local government workers and 4.1% for private industry workers.
Occupations where the total compensation cost increase was less than the 3.8% average in 2024 included construction (2.4%), retail trade (2.6%), manufacturing (3.6%) and accommodations and food service (3.6%).
Occupation groups that saw higher than average total compensation increases in 2024 included transportation and warehousing (4.6%), colleges and universities (4.3%), and hospitals (4.2%).
