The U.S. Bureau of Labor Statistics (BLS) reported that compensation costs for civilian workers increased by 1.2% for the three-month period ending in March 2023. Both wages and salaries and benefit costs rose by 1.2% from December 2022. Over the 12-month period ending in March 2023, compensation costs increased by 4.8%, with wages and salaries rising by 5.0% and benefit costs by 4.5%. In comparison, in March 2022, compensation costs had increased by 4.5%, with wages and salaries growing by 4.7% and benefit costs by 4.1%.
For private industry workers, compensation costs increased by 4.8% over the year. Wages and salaries rose by 5.1% for the 12-month period ending in March 2023, while the cost of benefits grew by 4.3%. Inflation-adjusted private wages and salaries saw a slight increase of 0.1% for the 12 months ending March 2023, but inflation-adjusted benefit costs in the private sector declined by 0.6%.
Among private industry occupational groups, the compensation cost increase for the 12-month period ending in March 2023 ranged from 4.3% for management, professional, and related occupations and natural resources, construction, and maintenance occupations, to 6.0% for service occupations. Within industry supersectors, compensation cost increases ranged from 4.2% for manufacturing to 5.9% for leisure and hospitality.
For state and local government workers, compensation costs rose by 4.9% for the 12-month period ending in March 2023, compared to a 3.2% increase in March 2022. Wages and salaries increased by 4.7% for the 12-month period ending in March 2023, while benefit costs grew by 5.0%.