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Employer Costs for Employees Lowest in South, Highest in Northeast

September 28, 2012Email ThisPrintNewslettersTweetArticle3 Comments

Total employer costs for employees in private industry ranges from $26.14 per hour in the South to $32.98 in the Northeast.

According to U.S. Bureau of Labor Statistics, the same costs are $28.06 in the Midwest and $30.01 in the West.

Overall, compensation costs among private industry employers in the United States averaged $28.80 per hour worked in June 2012. Wages and salaries, at $20.27 per hour, accounted for 70.4 percent of these costs, while benefits, at $8.52, made up the remaining 29.6 percent.

The costs ranged within each region, with total compensation costs of $24.44 in the East South Central division to $33.47 in New England.

BLS used compensation data from June 2012. The agency measures the average cost to employers for wages, salaries and benefits per employee hour worked. Benefits include health, life and disability insurance; workers’ compensation, unemployment insurance, Social Security and Medicare; and paid leave including vacation, holiday and sick days.

The data cover private industry only and exclude self-employed and farm and private household workers. The costs were collected from a sample of 47,400 occupations from about 9,500 establishments in private industry.

Regional Costs



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