Compensation costs for private industry workers in the Phoenix-Mesa, Arizona Combined Statistical Area (CSA) increased by 3.1 percent over the year ending September 2025, according to a report from the U.S. Bureau of Labor Statistics. Chris Rosenlund, Regional Commissioner, stated that this rise follows a 3.3 percent annual gain recorded one year earlier. Nationally, compensation costs grew by 3.5 percent during the same period.
Wages and salaries in Phoenix, which represent the largest portion of compensation costs, rose by 2.6 percent over the 12 months ending September 2025. In comparison, wages and salaries nationwide increased by 3.6 percent.
The increase in compensation costs in Phoenix was lower than those observed in other major western metropolitan areas such as Los Angeles-Long Beach, San Jose-San Francisco-Oakland, and Seattle-Tacoma, where advances ranged from 4.7 percent to 3.4 percent. The growth rate for wages and salaries in Phoenix also trailed these cities, with gains ranging from 4.3 percent to 3.4 percent reported elsewhere.
These local data are part of the national Employment Cost Index (ECI), which tracks quarterly changes in compensation costs while controlling for shifts among occupations and industries. More detailed information on survey methods and additional ECI data—including breakdowns by industry, occupation group, union status, and government level—can be found on the Employment Cost Index website as well as through the Western Information Office regional homepage.
The boundaries for substate area data used in this release follow guidelines set out by the Office of Management and Budget Bulletin No. 13-01 from February 28, 2013. The Phoenix-Mesa CSA covers Gila, Maricopa, and Pinal Counties.
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