Changing Compensation Costs in the Los Angeles Metropolitan Area — March 2026

Compensation costs for private industry workers increased 3.5 percent in the Los Angeles-Long Beach, CA Combined Statistical Area (CSA) for the year ending in March 2026, 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 4.1 percent in compensation costs. (See chart 1 and table 1.) Nationwide, compensation costs rose 3.4 percent in March 2026.

Locally, wages and salaries, the largest component of compensation costs, advanced at a 3.1-percent pace for the 12-month period ended March 2026. (See chart 2.) Nationwide, wages and salaries rose 3.4 percent over the same period.

Los Angeles is 1 of 15 metropolitan areas in the United States and 1 of 4 areas in the West region of the country for which locality compensation cost data are available. Among these 15 largest areas, over-the-year percentage changes in compensation costs ranged from 4.7 percent in Miami-Port St. Lucie-Fort Lauderdale to 0.3 percent in Houston-Pasadena in March 2026; for wages and salaries, Miami-Port St. Lucie-Fort Lauderdale registered the largest increase (4.6 percent), and Minneapolis-St. Paul registered the smallest (1.0 percent). (See chart 3.)

The annual increase in compensation costs in Los Angeles was 3.5 percent in March 2026, compared to advances that ranged from 3.3 percent to 4.3 percent in the three other metropolitan areas in the West (Phoenix-Mesa, San Jose-San Francisco-Oakland, and Seattle-Tacoma). Los Angeles' 3.1-percent gain in wages and salaries over this 12-month period compared to rates ranging from 2.8 percent to 4.2 percent in the three other western localities. (See table 2.)

The Employment Cost Index for June 2026 is scheduled to be released on Friday, July 31, 2026, at 8:30 a.m. (ET).

Technical Note

Locality compensation costs are part of the national Employment Cost Index (ECI), which measures quarterly changes in compensation costs (wages and salaries and employer costs for employee benefits) free from the influence of employment shifts among occupations and industries. More information can be found in the national Employment Cost Index Technical Note. For information on survey concepts, coverage, methods, nonresponse adjustment, and imputation see the Employment Cost Index Handbook of Methods.

In addition to the data presented here, ECI national data by industry, occupational group, and union status, as well as data for civilian, private, and state and local government employees, are available on the Employment Cost Index website. The national Employment Cost Index Summary is also available online. Additional information for regions, states, and local areas may be accessed via our Western Information Office regional homepage.

The substate area data published in this news release reflect the Office of Management and Budget Bulletin No. 23-01, dated July 21, 2023. See the Tracking Wage Growth in American Cities page for more information on available geographies and their historical timelines.

Los Angeles-Long Beach, CA CSA includes Los Angeles, Orange, Riverside, San Bernardino, and Ventura Counties in California.

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Table 1. Employment Cost Index 12-month percent changes for total compensation and for wages and salaries, private industry workers, United States, West Census region, and the Los Angeles area, not seasonally adjusted

Area	Total compensation (%)				Wages and salaries (%)
	Mar.	Jun.	Sep.	Dec.	Mar.	Jun.	Sep.	Dec.
United States
2022	4.8	5.5	5.2	5.1	5.0	5.7	5.2	5.1
2023	4.8	4.5	4.3	4.1	5.1	4.6	4.5	4.3
2024	4.1	3.9	3.6	3.6	4.3	4.1	3.8	3.7
2025	3.4	3.5	3.5	3.4	3.4	3.5	3.6	3.3
2026	3.4				3.4
West
2022	5.1	5.5	5.1	5.4	5.3	5.6	5.5	5.7
2023	5.1	4.5	4.4	4.1	5.6	4.9	4.7	4.4
2024	4.1	4.6	4.4	4.3	4.3	4.9	4.6	4.4
2025	3.7	3.5	3.5	3.2	3.5	3.4	3.3	3.0
2026	3.6				3.3
Los Angeles-Long Beach
2022	5.2	5.6	5.8	5.7	5.6	5.7	6.1	5.9
2023	4.7	5.0	4.6	4.5	4.9	5.3	4.9	5.0
2024	4.4	4.3	4.6	4.2	4.5	4.5	4.8	4.3
2025	4.1	3.9	3.4	3.3	4.4	4.1	3.4	3.2
2026	3.5				3.1

Table 2. Employment Cost Index 12-month percent changes for total compensation and for wages and salaries, private industry workers, United States, Census regions, and localities, not seasonally adjusted

Area	Total compensation (%)			Wages and salaries (%)
	Mar. 2025	Dec. 2025	Mar. 2026	Mar. 2025	Dec. 2025	Mar. 2026
United States	3.4	3.4	3.4	3.4	3.3	3.4
Northeast	3.3	3.5	3.4	3.6	3.4	3.2
Boston-Worcester-Providence	3.6	3.6	2.8	3.7	3.6	2.4
New York-Newark	3.0	3.4	3.4	3.2	3.3	3.2
Philadelphia-Reading-Camden	3.3	3.1	3.1	3.4	2.6	2.7
South	3.3	3.5	3.4	3.3	3.6	3.5
Atlanta-Athens-Clarke County-Sandy Springs	3.6	3.1	2.5	3.7	3.1	2.5
Dallas-Fort Worth	4.4	3.4	2.3	4.5	3.1	1.8
Houston-Pasadena	7.5	2.8	0.3	4.8	3.9	3.4
Miami-Port St. Lucie-Fort Lauderdale	1.1	4.7	4.7	1.2	4.7	4.6
Washington-Baltimore-Arlington	2.6	2.7	3.7	2.5	2.4	3.8
Midwest	3.3	3.4	3.3	3.2	3.4	3.4
Chicago-Naperville	3.2	4.9	4.1	3.1	4.8	4.1
Detroit-Warren-Ann Arbor	4.6	1.9	2.3	3.8	3.1	3.5
Minneapolis-St. Paul	5.7	3.8	1.4	5.7	3.7	1.0
West	3.7	3.2	3.6	3.5	3.0	3.3
Los Angeles-Long Beach	4.1	3.3	3.5	4.4	3.2	3.1
Phoenix-Mesa	3.4	3.2	4.3	3.2	2.8	4.2
San Jose-San Francisco-Oakland	3.8	2.6	3.8	3.5	2.6	4.0
Seattle-Tacoma	5.8	3.5	3.3	5.6	3.6	2.8