Compensation costs for private industry workers in the Phoenix-Mesa, Arizona Combined Statistical Area increased by 3.1 percent for the year ending September 2025, according to a report released by the U.S. Bureau of Labor Statistics. Chris Rosenlund, Regional Commissioner, stated that “one year ago, Phoenix experienced an annual gain of 3.3 percent in compensation costs.” Nationwide, compensation costs rose by 3.5 percent during the same period.
Within Phoenix, wages and salaries—the largest part of compensation—grew at a rate of 2.6 percent over the past year. Nationally, wages and salaries increased by 3.6 percent.
The rise in compensation costs in Phoenix was lower than those seen in other major western metropolitan areas such as Los Angeles-Long Beach, San Jose-San Francisco-Oakland, and Seattle-Tacoma, where increases ranged from 4.7 percent to 3.4 percent. Wages and salaries in Phoenix also saw smaller gains compared to these regions.
The Employment Cost Index (ECI) tracks changes in compensation costs across the country while controlling for employment shifts among different occupations and industries. More detailed data—including breakdowns by industry, occupation group, union status, and public sector—are available on the Employment Cost Index website. Additional regional information can be found through the Western Information Office regional homepage.
The Phoenix-Mesa Combined Statistical Area includes Gila, Maricopa, and Pinal Counties in Arizona.
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