KANSAS – Private industry employer costs for employee compensation among the four regions of the country ranged from $39.04 per hour in the South to $52.91 in the Northeast in March 2024, the U.S. Bureau of Labor Statistics reported today. In the other two regions, hourly employer costs for employee compensation stood at $41.40 in the Midwest and $46.15 in the West. In addition to regional estimates, employer costs for nine smaller geographic divisions are also available. Within divisions, total compensation costs ranged from $32.17 per hour in the East South Central division to $53.35 in the Middle Atlantic region. (See table 1.)
Employer Costs for Employee Compensation (ECEC) are based on the National Compensation Survey, which measures employer costs for wages, salaries, and employee benefits.
In the Northeast, hourly total compensation costs in March 2024 were comprised of the following: wages and salaries ($36.46) made up 68.9 percent, while total benefits ($16.45) accounted for the remaining 31.1 percent of compensation costs. Paid leave, which includes vacation, holiday, sick, and personal leave, averaged $4.34 per hour worked, or 8.2 percent of all compensation costs. Costs for insurance, which include life, health, and short- and long-term disability, averaged $4.02 per hour worked, accounting for 7.6 percent of total compensation costs. Legally required benefits, which include Social Security, Medicare, unemployment insurance (both state and federal), and workers’ compensation, averaged $3.85 per hour and represented 7.3 percent of total compensation costs.
In the West, hourly wages and salaries averaged $32.55 and accounted for 70.5 percent of all compensation costs. Total benefits averaged $13.60, or 29.5 percent of compensation costs. Legally required benefits averaged $3.55 per hour, or 7.7 percent of compensation costs. Paid leave costs were $3.48 per hour, or 7.5 percent of regional compensation costs. Insurance costs averaged $3.18 per hour, accounting for 6.9 percent of total compensation costs in the West.
The Midwest region recorded an hourly wage and salary average of $28.69 in March 2024, representing 69.3 percent of all compensation costs. Total benefits averaged $12.71 and accounted for the remaining 30.7 percent of total compensation costs. The highest major category for employer benefits was insurance, averaging $3.36 per hour worked, representing 8.1 percent of total employer compensation costs in the Midwest. Paid leave and legally required benefits averaged $2.99 and $2.98 per hour worked, respectively, both categories represent 7.2 percent of employer compensation in the region.
In the South, wages and salaries averaged $28.01 per hour and comprised 71.7 percent of total employer compensation costs, while benefits, at $11.03 per hour, accounted for the remaining 28.3 percent. Paid leave averaged $2.87 per hour worked, followed by legally required benefits at $2.79 per hour; these categories accounted for 7.4 percent and 7.1 percent, respectively, of total compensation costs in the South. Insurance benefits were the third-highest benefit cost at $2.69 per hour, accounting for 6.9 percent of employer compensation for the region.
Overall, compensation costs among private industry employers in the United States averaged $43.78 per hour worked in March 2024. Wages and salaries, at $30.76 per hour, accounted for 70.3 percent of these costs, while benefits, at $13.02, made up the remaining 29.7 percent.