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Employee Compensation - Continued <br /> Additional Information Related to 1997-98 Pay Objectives <br /> • As a general note,the area labor market has become increasingly tight over the past several years <br /> since adoption of our current pay plan. It's now characterized by the lowest unemployment in <br /> decades in Orange County and in the region. Over the past three years since the County adopted <br /> the current pay plan, unemployment in the five county region of Alamance, Chatham, Durham, <br /> Orange, and Wake Counties has declined from 3.2 percent in March 1994 to 1.87 percent in March <br /> 1997. Over the same three year period, employment in the five county area has grown by about <br /> 10 percent or by about 51,350 employees. The County is experiencing this tight labor market in <br /> recruitment, particularly for more technical positions. <br /> • The attached chart shows the recommended 1997-98 pay plans for area local government <br /> employers. <br /> • In terms of the cost of living, the table below shows the increases in the consumer price index and <br /> Orange County cost of living increases over the past six years. <br /> Orange County Cast of Consumer Price <br /> Fiscal Year Living Increase Index Year <br /> 1997-98* 2.5% 3.3% 1996 <br /> 1996-97 2.5% 2.5% 1995 <br /> 1995-96 2.4% 2.7% 1994 <br /> 1994-95 2.25% 2.7% 1993 <br /> 1993-94 2% 2.9% 1992 <br /> 1992-93 2% 3.1% 1991 <br /> 1991-92 -0- 6.1% 1990 <br /> *Proposed <br /> • As to salary compression, the salaries of current employees are concentrated in the lower portion of <br /> the salary range. For example, Step 3D is 10 percent above the salary range minimum. About 40 <br /> percent of all permanent <br /> employees or about 225 Number <br /> employees are at or below Employees Employees By Step In Salary Range <br /> Step 3D. Of these 225, 140 <br /> about 150 have more than <br /> two years service and 50 120 <br /> have more than five years 100 <br /> service. The chart below <br /> shows the distribution of 80 <br /> employees by step in the 60 <br /> salary range. <br /> 40 <br /> At present to fill positions, 20 <br /> about 50 percent of new <br /> employees are hired at 0 <br /> salaries above the salary 1 2 3 4 5 6 7 8 9 10 11 <br /> range minimum (Step 1). Steps in Salary Range <br /> This means new employees <br /> are coming in at the same salary or salaries close to those of longer service employees. <br /> Appendix A - 3 <br /> 30 <br />