Local wage increases outpace national average
Wage, salary, and benefit costs rose faster in Greater Boston over the past year than any other large metropolitan area, growing at nearly three times the national average, the US Bureau of Labor Statistics reported today.
The 3.2 percent increase in compensation costs, compared with 1.2 percent nationally, was surprising given high unemployment rates that tend to hold down salary and benefits as more workers compete for fewer jobs.
In Greater Boston, the increase was driven by three sectors that have held up relatively well during the recession: health care; education; and professional, scientific and technical services, said Denis McSweeney, regional commissioner of the bureau. These sectors account for about one-third of employment in the region.
Total compensation costs rose in Greater Boston at twice the rate of the next closest metro areas, Philadelphia and Washington, which each saw 1.6 percent increases. Of the 15 large metropolitan areas tracked by the Bureau of Labor Statistics, only two, Minneapolis and Phoenix, saw compensation costs decline from a year ago, the agency said.
The unemployment rate in Greater Boston was 8.8 percent in September, the highest in at least 17 years. The state unemployment rate, 9.3 percent, is the highest since 1976.
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