WASHINGTON — Employment costs posted another modest gain in the July-to-September quarter, with compensation for state and local government employees turning in the weakest performance in nearly three decades.
Employment costs for civilian workers rose 0.4 percent in the third quarter and are up just 1.9 percent for the 12 months ending in September, the Labor Department reported Friday. High unemployment following a deep recession continues to depress workers’ bargaining power.
State and local government workers, who have been battered by shrinking budgets, fared even worse than employees of private industry. Their compensation was flat in the third quarter and up only 1.7 percent in the past 12 months.
Both were the weakest showings on records that go back 28 years.
The 1.9 percent 12-month rise in compensation for all civilian workers was little changed from a 1.8 percent increase for the 12 months ending in June.
