From The Bureau of Labor Statistics
Compensation costs for civilian workers increased 1.8 percent for the 12-month period ending June 2010 while the overall inflation rate (CPI-U) was only 1.05%. This was the same Compensation cost increase as the 12-month period ending in June 2009. Wages and salaries increased 1.6 percent for the current 12-month period, compared to a 1.8 percent increase for the 12-month period ending in June 2009. Benefit costs rose 2.5 percent, up from a 1.8 percent increase for the 12-month period ending June 2009.
Compensation costs
From the chart below we can see that the rate of increase is declining although overall government salaries are still increasing.
for State and Local Government Workers increased 1.8 percent for the 12-month period ending June 2010. Since this series began in June 1982, published values ranged from 2.0 percent in March 2010 to 9.6 percent in June 1982. Wages and salaries increased 1.4 percent. This series also began in June 1982. Prior published values ranged from 1.8 in March 2010 to 8.5 percent in June 1982. Benefit costs increased 2.6 percent. Prior published values for this series, which began in June 1990, ranged from 1.2 percent in December 1997 to 8.3 percent in June 1990.