US Census Data On Wages And Benefits (October, 2012)

7/31/2019 US Census Data On Wages And Benefits (October, 2012)

1/28

Wages and benefit s ofAmerican w orkers

70% of employer compensation costsgo to wages; 30% to benefits

Annual wage increases have slowed tobelow 2% in recent years

Employees have greater responsibility

for their benefits than everChoice of plans

Decision to save and invest

Requirement to share the cost 1


2/28

How are employer w age andbenefi t dollars spent ?

2

Wages

70%

Supplemental pay(premium pay,

bonuses)

3%

Paid leave

7%

Insurance

8%

Retirement and savings

4%

Legally required

benefits

8%

Share of employer costs for wages and benefits, private industry, June 2012


3/28

Wage changes slow ed dur ingrecession; 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

Employm ent Cost I ndex, Civilian w orkers,Wages and salaries, 12-m ont h percent change, 1982-2012

Recession

Wages and salaries

Recessions: Jul 1981 - Nov 1982Jul 1990 - Mar 1991Mar 2001 - Nov 2001Dec 2007 - Jun 2009


4/28

Recent w age changes averagingbelow 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


5/28

Wage changes for of f ice andprofessional w orkers

5

0

1

2

3

4

5

6

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Mgmt, business, finance Office


6/28

Wage changes for const ruct ionand service w orkers

6

0

1

2

3

4

5

6

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Construction/extraction Service


7/28

Wage changes for sales w orkers

7

-3

-2

-1

0

1

23

4

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Sales


8/28

Wage changes byunion st atus

8

0

1

2

3

4

5

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Union Non-union


9/28

Wage changes: pr ivate indust ryand st ate/ local government

9

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 State and local government


10/28

Wages vary by occupat ionalgroup in private indust ry

$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


11/28

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


12/28

Who is offered healt h care

benef it s in private indust ry?

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


13/28

Are w orkers t aking advant age ofhealt h care benefit s?

0

20

40

60

80

100

All Professionalworkers

Service workers Sales/officeworkers

Productionworkers

Lowest 10%wages

Highest 10%wages

Percent of w orkers offered and taking m edical benefit s,private indust ry, March 2012

Plan offered Plan taken13


14/28

Workers are required t o sharecost of healt h care benefi t s

0

20

40

60

80

100

1985 1989 2000 2005 2012

Percent of private industry workers required to contribute for single coverage

Percent of private industry workers required to contribute for family coverage14


15/28

Employers and employees sharecost of healt h benef it

0%

20%

40%

60%

80%

100%

Single coverage Family coverage

Share of medical premium, private indust ry, March 2012

Employer share Employee share

Averagemonthly

employeepremium $427

15

Averagemonthly

employeepremium $108


16/28

How have healt h planschanged over t ime?

0%

20%

40%

60%

80%

100%

1985 1989 1995 2000 2005 2010

Traditional fee-for-service Health maintenance organization

Preferred provider organization Other

16

Percent of medical plan participants by type of plan, private industry, 1985-2010


17/28

Out -of-pocket healt h care cost s

$0

$100

$200

$300

$400

$500

$600

1985 1989 1995 2000 2005 2010

Average individual deductible per year, private

industry

17

$1000 forout of

network

services


18/28

High deduct ible plans:New t ype of healt h care plan

One-in-four participants in privateindustry

More in small establishments Median deductible $1500

Often coupled with health account

Can be used for routine expenses

18


19/28

Who is offered ret irementbenefits?

65

92

6250

8274

38

0

20

40

60

80

100

Privateindustry

Union Nonunion 1-99employees

100 ormore

employees

Full-time Part-time

Percent of workers with access to retirement benefits, private

industry, March 2012

19


20/28

Ret irement plancoverage over t ime

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 plan

Traditional pension

Defined contribution, such as 401(k)

20


21/28

Who t akes advant age of401( k) and sim ilar 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


22/28

How prevalent aret ime-off benefit s?

77 77

61 60

37

0

20

40

60

80

100

Paid vacation Paid holidays Paid sickleave

Paid funeralleave

Paid personalleave

Percent of w orkers offered selected benefit s, pri vateindustry, March 2012

22


23/28

What other benefit sare offered in private indust ry?

57

48

34

16

90

20

40

60

Life insurance Employeeassistanceprogram

Wellnessprogram

Long-termcare

insurance

Subsidizedchild care

Percent of w orkers offered selected benefit s, pri vateindustry, March 2012

23


24/28

Benefit s for st ate and localgovernment w orkers

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 w orkers offered selected benefit s, st ateand local government, March 2012

24


25/28

How have benefi t s changedin recent years?

Benefits 1980

Little or no employeechoice or cost

Single health plan basiccoverage 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


26/28

Employer cost s for benefi t s morevolat ile t han w age cost s

26

0

1

2

3

4

5

6

7

8

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

Percentchange


27/28

Employer cost s for benef it sinf luenced by health cost s

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-m ont h percent change in employer costs for t otal benefit s and healt h benefits,private industr y

Health benefits

Total benefits


28/28

Employer compensat ion cost svary by locat ion

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

US Census Data On Wages And Benefits (October, 2012)

Documents

Transcript of US Census Data On Wages And Benefits (October, 2012)