Private sector wages and benefits in the United States rose last year by the smallest increment in nine years, according to the latest Labor Department report released Tuesday. The Labor Department report found that overall employee compensation was up 3.1 percent in 2005, with benefits like health insurance and pension payments up 4.5 percent. The rise was smaller than last year, when employee compensation increased by 3.7 percent and benefits alone rose by 4.5 percent. The 3.1 percent increase in total compensation for the 12 months ending in December was the smallest annual increase since a 2.9 percent rise in 1996, the Labor Department said. When inflation is factored in, overall employee compensation actually fell by 0.3 percent. The Federal Reserve expects the U.S. job market will eventually see faster growth in employee compensation, as falling unemployment creates a pressure on wages and benefits. --SP 13 29 Local Time 10 29 GMT
