Private industry employer costs for employee compensation among the four regions of the country ranged from $31.66 per hour in the South to $40.69 in the West during June 2020, the U.S. Bureau of Labor Statistics reported today. In the other two regions, hourly employer costs for employee compensation stood at $34.20 in the Midwest and $40.58 in the Northeast. (See chart 1.) In addition to regional estimates, employer costs for nine smaller geographic divisions are also available. Within divisions, total compensation costs ranged from $28.93 per hour in the East South Central division to $43.35 in the Pacific division. (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. (Geographic definitions of the regions and divisions follow in the Technical Note.)

In the West, hourly total compensation costs in June 2020 were comprised of the following: wages and salaries ($28.54) made up 70.1 percent, while total benefits ($12.15) accounted for the remaining 29.9 percent. Among benefit costs, insurance, which includes life, health, and short- and long-term disability, averaged $3.26 per hour worked, or 8.0 percent of all compensation costs, the highest share for West employers. Legally required benefits, which include Social Security, Medicare, unemployment insurance (both state and federal), and workers’ compensation, averaged $3.15 per hour and represented 7.7 percent of total compensation costs. Costs for paid leave, which includes vacation, holiday, sick, and personal leave, averaged $3.06 per hour worked, accounting for 7.5 percent of total compensation costs.

In the Northeast, hourly wages and salaries averaged $27.78 and accounted for 68.5 percent of all compensation costs. Total benefits averaged $12.80, or 31.5 percent of compensation costs. Insurance costs averaged $3.47 per hour, or 8.5 percent of compensation costs in the Northeast. Costs for paid leave averaged $3.22 per hour, accounting for 7.9 percent of total compensation costs. Legally required benefits averaged $3.13 per hour worked and accounted for 7.7 percent of regional compensation costs.

The Midwest region recorded an hourly wage and salary average of $23.58 in June 2020, which represented 69.0 percent of all compensation costs. Total benefits averaged $10.62 and accounted for the remaining 31.0 percent of total compensation costs. The three highest major categories for employer benefit costs were: insurance benefits ($3.05 per hour worked), legally required benefits ($2.59), and paid leave ($2.41). These categories represented 8.9 percent, 7.6 percent, and 7.1 percent, respectively, of total employer compensation costs in the Midwest.

In the South, wages and salaries averaged $22.71 per hour and comprised 71.7 percent of total employer compensation costs, while benefits, at $8.95 per hour, accounted for the remaining 28.3 percent. Legally required benefits averaged $2.35 per hour worked, followed by insurance benefits at $2.25 per hour; these categories accounted for 7.4 percent and 7.1 percent, respectively, of total compensation costs in the South. Paid leave was the third-highest benefit cost and averaged $2.20 per hour, accounting for 6.9 percent of employer compensation costs in the region.

Overall, compensation costs among private industry employers in the United States averaged $35.96 per hour worked in June 2020. Wages and salaries, at $25.18 per hour, accounted for 70.0 percent of these costs, while benefits, at $10.79, made up the remaining 30.0 percent.

The September 2020 national release on Employer Costs for Employee Compensation is scheduled to be released on Thursday, December 17, 2020, at 10:00 a.m. (ET).

Technical Note

Employer Costs for Employee Compensation (ECEC) measures the average cost to employers for wages and salaries and benefits per employee hour worked.

Employer Costs for Employee Compensation data in this release cover private industry. Excluded from private industry are the self-employed and farm and private household workers. The cost levels for this quarter were collected from a probability sample of approximately 25,500 occupational observations selected from a sample of about 6,300 private industry establishments. The private industry sample is rotated over approximately three years, which makes the sample more representative of the economy and reduces respondent burden. Data are collected for the pay period including the 12^th day of the survey months of March, June, September, and December.

Employer Costs for Employee Compensation data on total compensation, wages and salaries, and benefits in private industry are produced annually in the March reference period for 15 combined and metropolitan statistical areas (CSA and MSA). Further information about metropolitan area ECEC estimates is available at www.bls.gov/opub/mlr/cwc/bls-introduces-new-employer-costs-for-employee-compensation-data-for-private-industry-workers-in-15-metropolitan-areas.pdf.

For detailed information on ECEC, see “National Compensation Measures,” of the BLS Handbook of Methods at www.bls.gov/opub/hom/ncs/home.htm.

Current and historical BLS data are also posted on our Web site at www.bls.gov/ect.

Information from the Employer Costs for Employee Compensation program is available to sensory impaired individuals upon request. Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.

Regional definitions

Northeast region

• New England division: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont
• Middle Atlantic division: New Jersey, New York, Pennsylvania

Midwest region

• East North Central division: Illinois, Indiana, Michigan, Ohio, Wisconsin
• West North Central division: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota

South region

• South Atlantic division: Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, West Virginia
• East South Central division: Alabama, Kentucky, Mississippi, Tennessee
• West South Central division: Arkansas, Louisiana, Oklahoma, Texas

West region

• Mountain division: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, Wyoming
• Pacific division: Alaska, California, Hawaii, Oregon, Washington

Table 1. Employer Costs for Employee Compensation for private industry workers by census region and division[June 2020]

Area (1)	Total compensation (2)		Wages and salaries		Total benefits		Paid leave		Supplemental pay		Insurance		Retirement and savings		Legally required benefits
	Cost ($)	Percent	Cost ($)	Percent	Cost ($)	Percent	Cost ($)	Percent	Cost ($)	Percent	Cost ($)	Percent	Cost ($)	Percent	Cost ($)	Percent
Northeast	40.58	100.0	27.78	68.5	12.80	31.5	3.22	7.9	1.41	3.5	3.47	8.5	1.57	3.9	3.13	7.7
New England	41.70	100.0	28.62	68.6	13.08	31.4	3.32	8.0	1.38	3.3	3.47	8.3	1.80	4.3	3.10	7.4
Middle Atlantic	40.19	100.0	27.49	68.4	12.70	31.6	3.19	7.9	1.42	3.5	3.47	8.6	1.49	3.7	3.14	7.8
South	31.66	100.0	22.71	71.7	8.95	28.3	2.20	6.9	1.13	3.6	2.25	7.1	1.02	3.2	2.35	7.4
South Atlantic	32.49	100.0	23.27	71.6	9.21	28.4	2.29	7.0	1.10	3.4	2.34	7.2	1.05	3.2	2.44	7.5
East South Central	28.93	100.0	20.61	71.2	8.33	28.8	1.97	6.8	0.97	3.4	2.27	7.9	0.97	3.3	2.14	7.4
West South Central	31.46	100.0	22.68	72.1	8.79	27.9	2.15	6.8	1.26	4.0	2.08	6.6	1.01	3.2	2.29	7.3
Midwest	34.20	100.0	23.58	69.0	10.62	31.0	2.41	7.1	1.30	3.8	3.05	8.9	1.26	3.7	2.59	7.6
East North Central	34.91	100.0	23.97	68.6	10.95	31.4	2.45	7.0	1.39	4.0	3.11	8.9	1.36	3.9	2.63	7.5
West North Central	32.62	100.0	22.73	69.7	9.89	30.3	2.32	7.1	1.10	3.4	2.93	9.0	1.03	3.2	2.50	7.7
West	40.69	100.0	28.54	70.1	12.15	29.9	3.06	7.5	1.17	2.9	3.26	8.0	1.50	3.7	3.15	7.7
Mountain	34.48	100.0	24.26	70.4	10.22	29.6	2.45	7.1	1.18	3.4	2.78	8.1	1.25	3.6	2.55	7.4
Pacific	43.35	100.0	30.38	70.1	12.98	29.9	3.32	7.7	1.17	2.7	3.47	8.0	1.60	3.7	3.41	7.9
Footnotes: (1) The census divisions are defined as follows: New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont; Middle Atlantic: New Jersey, New York, and Pennsylvania; South Atlantic: Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and West Virginia; East South Central: Alabama, Kentucky, Mississippi, and Tennessee; West South Central: Arkansas, Louisiana, Oklahoma, and Texas; East North Central: Illinois, Indiana, Michigan, Ohio, and Wisconsin; West North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota; Mountain: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming; and Pacific: Alaska, California, Hawaii, Oregon, and Washington. (2) Includes costs for wages and salaries and benefits.