Rising unemployment concerns many an economist these days. The
percentage of individuals out of work rose to 6% in 2002, signaling
potential troubles throughout the economy. Credit unions, however,
expanded significantly over the last two years, necessitating the
hiring of 17,957 new employees, a 4.7% annual rate of increase over
the last 24 months.
This increase in employment comes with a hefty price tag. Total
salary and benefit expenses rose 10.6% and the average salary and
benefit per employee grew 6.5% in the last twelve months. All of
this employment growth also occurred while lowered interest rates
caused a drop in total revenue. This decreased revenue per employee
Even with these shifts, there is still a positive correlation between
salary and benefit per employee and income generated per employee.
Credit unions that pay their employees more generate higher revenue
per employee. The scatter plot graph below plots all credit unions
with at least 25 employees. The dotted line streaking to the upper
right hand corner at a 45-degree angle shows the positive correlation.