Employee compensation costs in the United States rose by 3.8% over the 12-month period ending in December 2024, according to data released by the U.S. Bureau of Labor Statistics. This increase was slightly lower than the previous year's rise of 4.2%.
In detail, state and local government workers experienced a compensation cost increase of 4.7% in 2024, surpassing the private industry's increase of 3.6%. Within the private sector, union workers saw a rise of 5.1%, while non-union workers had a smaller increase of 3.4% during the same period.
The percentage increases for these subgroups were less pronounced compared to those recorded in 2023, when state and local government worker compensation rose by 4.6% and private industry worker compensation increased by 4.1%.
Certain occupations registered below-average increases in total compensation costs for 2024: construction at 2.4%, retail trade at 2.6%, manufacturing at 3.6%, and accommodations and food service also at 3.6%.
Conversely, sectors such as transportation and warehousing saw above-average rises in total compensation costs at 4.6%. Colleges and universities followed with an increase of 4.3%, while hospitals reported a rise of 4.2%.
