Compensation costs for private industry workers in the Los Angeles-Long Beach Combined Statistical Area increased by 3.4 percent over the year ending September 2025, according to a report released by the U.S. Bureau of Labor Statistics. This rise is slightly lower than the 4.6 percent increase recorded in the previous year.
Regional Commissioner Chris Rosenlund stated, “Compensation costs for private industry workers increased 3.4 percent in the Los Angeles-Long Beach, CA Combined Statistical Area (CSA) for the year ending in September 2025, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Chris Rosenlund noted that one year ago, Los Angeles experienced an annual gain of 4.6 percent in compensation costs.”
Nationally, compensation costs rose by 3.5 percent during the same period.
Wages and salaries, which make up the largest portion of compensation costs, also grew by 3.4 percent locally over the past year. In comparison, wages and salaries nationwide saw a slightly higher increase of 3.6 percent.
The report highlights that Los Angeles is one of fifteen metropolitan areas across the United States—and one of four in the West—where locality compensation cost data are available. Among these metropolitan areas, Miami-Port St. Lucie-Fort Lauderdale experienced the highest annual percentage change in compensation costs at 5.7 percent, while Detroit-Warren-Ann Arbor had the lowest at 2.1 percent for September 2025.
In terms of wage and salary growth among major western metropolitan areas—Phoenix-Mesa, San Jose-San Francisco-Oakland, and Seattle-Tacoma—Los Angeles’ rate was within a range from 4.3 percent to 2.6 percent.
Locality compensation cost figures are included as part of the national Employment Cost Index (ECI), which tracks quarterly changes in wages, salaries, and employer benefit expenses without being affected by employment shifts across different jobs or industries.
Further information on industry breakdowns and employee groups can be found on the Employment Cost Index website as well as through regional resources provided by the Western Information Office. The ECI methodology and geographic classifications are detailed in official handbooks and bulletins published by federal agencies.
The Los Angeles-Long Beach CSA includes Los Angeles, Orange, Riverside, San Bernardino, and Ventura Counties.
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