Compensation costs for US civilian workers rose 0.9% in Q2 2025, with wages up 1.0% and benefits up 0.7%, according to the Bureau of Labor Statistics. Over the 12 months ending June 2025, total compensation increased 3.6%, with similar gains in wages (3.6%) and benefits (3.5%). Private industry saw a 3.5% compensation rise, including a 0.8% increase in inflation-adjusted wages. Union workers experienced higher increases (4.3%) than non-union workers (3.4%). For state and local government employees, compensation rose 4.0%, down from 4.9% the previous year. BLS writes:
Compensation costs for civilian workers increased 0.9 percent, seasonally adjusted, for the 3-month period ending in June 2025, the U.S. Bureau of Labor Statistics reported today. Wages and salaries rose 1.0 percent, while benefit costs increased 0.7 percent from March 2025.
Over the 12-month period ending in June 2025, compensation costs for civilian workers increased 3.6 percent. Wages and salaries also rose 3.6 percent, and benefit costs climbed 3.5 percent during the same period.
For private industry workers, compensation costs increased 3.5 percent over the year. Wages and salaries rose 3.5 percent, while the cost of benefits increased 3.4 percent. Inflation-adjusted (constant dollar) wages and salaries went up 0.8 percent for the 12 months ending in June 2025.
By bargaining status within private industry, compensation costs increased 4.3 percent for union workers and 3.4 percent for non-union workers. Wages and salaries rose 4.6 percent for union workers and 3.5 percent for non-union workers. Benefit costs increased 3.8 percent for union workers and 3.4 percent for non-union workers.
Compensation costs for state and local government workers rose 4.0 percent for the 12-month period ending in June 2025, compared to a 4.9 percent increase in June 2024. Wages and salaries increased 3.9 percent in June 2025, down from 5.1 percent the previous year. Benefit costs rose 4.1 percent, compared to 4.8 percent in June 2024.
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