wages and benefits of american workers - census.gov · wages and benefits of american workers 70%...
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Wages and benefits of American workers
70% of employer compensation costs go to wages; 30% to benefits
Annual wage increases have slowed to below 2% in recent years
Employees have greater responsibility for their benefits than ever Choice of plans Decision to save and invest Requirement to share the cost
1
How are employer wage and benefit dollars spent?
2
Wages70%
Supplemental pay (premium pay,
bonuses)3%
Paid leave7%
Insurance8%
Retirement and savings4%
Legally required benefits
8%
Share of employer costs for wages and benefits, private industry, June 2012
Wage changes slowed during recession; have not recovered
3
0
2
4
6
8
10
82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12
Percent change
Employment Cost Index, Civilian workers, Wages and salaries, 12-month percent change, 1982-2012
Recession
Wages and salaries
Recessions: Jul 1981 - Nov 1982 Jul 1990 - Mar 1991 Mar 2001 - Nov 2001 Dec 2007 - Jun 2009
Recent wage changes averaging below 2% per year
4
0
0.5
1
1.5
2
2.5
3
3.5
4
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
12-month percent change in employer costs for wages, private industry
Wage changes for office and
professional workers
5
0
1
2
3
4
5
6
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
12-month percent change in employer costs for wages, private industry
Mgmt, business, finance Office
Wage changes for construction
and service workers
6
0
1
2
3
4
5
6
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
12-month percent change in employer costs for wages, private industry
Construction/extraction Service
Wage changes for sales workers
7
-3
-2
-1
0
1
2
3
4
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
12-month percent change in employer costs for wages, private industry
Sales
Wage changes by
union status
8
0
1
2
3
4
5
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
12-month percent change in employer costs for wages, private industry
Union Non-union
Wage changes: private industry
and state/local government
9
00.5
11.5
22.5
33.5
4
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
12-month percent change in employer costs for wages
Private State and local government
Wages vary by occupational group in private industry
$0.00 $10.00 $20.00 $30.00 $40.00
Service
Production/transportation
Sales/office
Construction
Management/professional
All private industry
Wages and salaries by occupation, private industry, June 2012
10
Wages vary by other factors
$0.00 $10.00 $20.00 $30.00
Union
Nonunion
Full-time
Part-time
1-49 workers
500 or more workers
All private industry
Wages and salaries, private industry, June 2012
11
Who is offered health care benefits in private industry?
70
94
6757
85 86
67
0
20
40
60
80
100
Private industry Union Nonunion 1-99 employees 100 or more employees
Goods-producing industries
Service-providing industries
Percent of workers with access to medical benefits, private industry, March 2012
12
Are workers taking advantage of health care benefits?
0
20
40
60
80
100
All Professionalworkers
Service workers Sales/officeworkers
Productionworkers
Lowest 10%wages
Highest 10%wages
Percent of workers offered and taking medical benefits, private industry, March 2012
Plan offered Plan taken13
Workers are required to share cost of health care benefits
0
20
40
60
80
100
1985 1989 2000 2005 2012Percent of private industry workers required to contribute for single coverage
Percent of private industry workers required to contribute for family coverage14
Employers and employees share cost of health benefit
0%
20%
40%
60%
80%
100%
Single coverage Family coverage
Share of medical premium, private industry, March 2012
Employer share Employee share
Average monthly
employee premium $427
15
Average monthly
employee premium $108
How have health plans changed over time?
0%
20%
40%
60%
80%
100%
1985 1989 1995 2000 2005 2010
Traditional fee-for-service Health maintenance organizationPreferred provider organization Other
16
Percent of medical plan participants by type of plan, private industry, 1985-2010
Out-of-pocket health care costs
$0
$100
$200
$300
$400
$500
$600
1985 1989 1995 2000 2005 2010
Average individual deductible per year, private industry
17
$1000 for out of
network services
High deductible plans:
New type of health care plan
One-in-four participants in private industry More in small establishments
Median deductible $1500 Often coupled with health account Can be used for routine expenses
18
Who is offered retirement benefits?
65
92
6250
8274
38
0
20
40
60
80
100
Private industry
Union Nonunion 1-99 employees
100 or more
employees
Full-time Part-time
Percent of workers with access to retirement benefits, private industry, March 2012
19
Retirement plan coverage over time
0
20
40
60
80
100
1985 1989 1995 2000 2005 2012
Percent of full-time workers participating in retirement plans, private industry
Any retirement planTraditional pensionDefined contribution, such as 401(k)
20
Who takes advantage of 401(k) and similar plans?
0
20
40
60
80
100
Private industry Lowest wage quartile
Second wage quartile
Third wage quartile
Highest wage quartile
Percent of workers offered and taking defined contribution plans, private industry, March 2012
Benefit offered Benefit taken
21
How prevalent are time-off benefits?
77 77
61 60
37
0
20
40
60
80
100
Paid vacation Paid holidays Paid sickleave
Paid funeralleave
Paid personalleave
Percent of workers offered selected benefits, private industry, March 2012
22
What other benefits are offered in private industry?
57
48
34
16 9
0
20
40
60
Life insurance Employeeassistanceprogram
Wellnessprogram
Long-termcare
insurance
Subsidizedchild care
Percent of workers offered selected benefits, private industry, March 2012
23
Benefits for state and local government workers
13
31
52
79
83
87
0 20 40 60 80 100
Subsidized child care
Defined contribution/403(b)
Wellness program
Life insurance
Traditional pension
Health insurance
Percent of workers offered selected benefits, state and local government, March 2012
24
How have benefits changed in recent years?
Benefits – 1980
Little or no employee choice or cost
Single health plan – basic coverage plus major
medical
Traditional pension plan
Benefits – 2012
Employee must choose; employee must share the
cost
Choice of health plan types – HMO, PPO, plus health
account
Defined contribution plan, such as 401(k)
25
Employer costs for benefits more volatile than wage costs
26
012345678
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
12-month percent change in employer costs for wages and benefits, private industry
Wages Benefits
Percent change
Employer costs for benefits influenced by health costs
27
-3
0
3
6
9
12
15
18
21
24
82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12
Percent change
12-month percent change in employer costs for total benefits and health benefits, private industry
Health benefits
Total benefits
Employer compensation costs vary by location
Metropolitan area
Total compensation
Wages and salaries
Benefits
San Francisco $41.45 $28.47 $12.98
New York $36.39 $25.04 $11.36
Chicago $32.82 $22.44 $10.38
United States $28.78 $20.25 $8.53
Atlanta $26.05 $18.77 $7.27
Miami $24.12 $17.67 $6.45
Employer costs per hour worked for wages and benefits, private industry, March 2012
28