Metro area wages, benefits up 3.8%, data show
Workers in the private sector in the metropolitan region saw their pay and benefits increase 3.8% last year compared with 2018, according to data released Friday by the federal Bureau of Labor Statistics.
The 35-county region that includes Long Island had the biggest rise in compensation for non-government workers, year over year, among the country's 15 largest metro areas. Boston, with a 3.5% increase, was second.
Nationwide, private-sector pay and benefits, including medical insurance, rose 2.7% last year compared with 2018, according to the bureau's employment cost index.
Martin Kohli, the bureau's chief regional economist in Manhattan, said wages and salaries, the largest component of annual compensation, climbed 4% in the New York area between 2018 and 2019. Wages and salaries were up 3% nationally, year over year.
He said the compensation increase in the New York region follows a 3.7% rise between 2017 and 2018.
The slow nationwide growth of salary and benefits has been a surprise to economists, since the unemployment rate, currently 3.5%, is at a half-century low. Businesses typically are forced to pay more and offer better perks when the labor market is so tight.
James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.
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