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Past Issues

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Summer 2006 / No. 68
Benefit cost increases continue
to moderate
Employers’ benefit costs have been
increasing, but at a much slower rate. Benefit costs, increasing
at 6.5 percent in 2004, are now increasing at only 3 percent
according to the Labor Department. And while benefit elimination
is having some impact, BusinessWeek reports
that businesses are keeping costs down "mainly by shifting
more of the burden of paying (for benefits) to workers." Apparently,
voluntary business is both driven by, and is an indicator of,
increasing corporate efficiency. |