U.S regional differences seen in June employer compensation costs

Chris Rosenlund, Regional Commissioner at U.S. Department of Labor, Bureau of Labor Statistics
Chris Rosenlund, Regional Commissioner at U.S. Department of Labor, Bureau of Labor Statistics - LinkedIn
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Private industry employers in the United States paid an average of $45.65 per hour worked for employee compensation in June 2025, according to a report from the U.S. Bureau of Labor Statistics (BLS). Wages and salaries accounted for $32.07, or 70.2 percent of this total, while benefits made up $13.58, or 29.8 percent.

Employer costs varied by region. In the South, employer compensation costs averaged $39.94 per hour, with wages and salaries at $28.66 per hour making up 71.8 percent of the total and benefits at $11.28 accounting for 28.2 percent. Paid leave and insurance both cost employers $2.88 per hour worked in this region.

In the Midwest, average hourly compensation was $42.13, with wages and salaries at $29.24 representing 69.4 percent and benefits at $12.89 comprising 30.6 percent of costs.

The West recorded an average hourly employer cost of $49.85; wages and salaries were $34.88 (70 percent), while benefits averaged $14.97 (30 percent). Paid leave was reported at $3.82 per hour worked.

Employers in the Northeast faced the highest average compensation costs among regions at $56.67 per hour worked in June 2025, with wages and salaries averaging $39.22 (69.2 percent) and benefits totaling $17.44 (30.8 percent). Paid leave expenses reached an average of $4.70 per hour worked.

Within nine smaller geographic divisions, total compensation ranged from a low of $33.45 per hour in the East South Central division to a high of $56.72 in the Middle Atlantic division.

The Employer Costs for Employee Compensation data are based on information collected from about 26,400 occupational observations across approximately 6,200 private industry establishments during each survey period as part of the National Compensation Survey program conducted by BLS.

The next national release is scheduled for December 12, 2025.

Further details about metropolitan area estimates can be found on the BLS website: 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 more technical information on these measures see “National Compensation Measures,” BLS Handbook of Methods: www.bls.gov/opub/hom/ncs/home.htm

Current and historical ECEC data are available online: www.bls.gov/ecec

“Employer Costs for Employee Compensation (ECEC) provides the average employer cost for wages and salaries as well as 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, agricultural workers, and private household workers.”

“Data for this reference period were collected from a probability sample of approximately 26,400 occupational observations selected from a sample of about 6,200 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 12th 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).”



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