For Release: Thursday, September 11, 2014
SOUTHWEST INFORMATION OFFICE: Dallas, Texas
Technical information: (972) 850-4800 [email protected]
Media contact:
(972) 850-4800
14-1656-DAL
www.bls.gov/regions/southwest
Employer Costs for Employee Compensation for the Regions – June 2014
Employer costs for employee compensation in private industry among the four regions of the country
ranged from $27.29 per hour in the South to $35.05 in the Northeast during June 2014, the U.S. Bureau of
Labor Statistics reported today. In the other two regions, hourly employer costs for employee compensation
stood at $28.81 in the Midwest and $31.60 in the West. (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 $24.33 per hour in the East South Central division to $35.14 in the Mid
Atlantic 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 Northeast, hourly total compensation costs were comprised of the following: wages and salaries
($23.95) made up 68.3 percent, while total benefits ($11.10) accounted for the remaining 31.7 percent.
Insurance costs, which include life, health, and short- and long-term disability, averaged $3.05 per hour
worked and 8.7 percent of all compensation costs. Legally required benefits, which include Social Security
and Medicare, workers’ compensation, and unemployment insurance, averaged $2.84 per hour and
represented 8.1 percent of total compensation costs. Paid leave benefits, which includes vacation, holiday,
sick, and personal leave, was $2.63 per hour worked and accounted for 7.5 percent of total compensation
costs.
Hourly wages and salaries averaged $22.14 in the West and accounted for 70.1 percent of all compensation
costs. Total benefits averaged $9.46, or 29.9 percent of total compensation costs. Legally required benefits
averaged $2.67 per hour worked and accounted for 8.4 percent of total compensation costs in the West.
Insurance benefits averaged $2.47 per hour and represented 7.8 percent of all employer costs, while paid
leave was $2.13, or 6.7 percent of total compensation costs.
The Midwest region recorded an hourly wage and salary average of $19.96 in June 2014, which represented
69.3 percent of all compensation costs. Total benefits averaged $8.85 and accounted for the remaining 30.7
percent of total compensation costs. The three highest categories for employer benefit costs included:
insurance benefits ($2.61 per hour worked), legally required benefits ($2.32), and paid leave ($1.96). These
categories represented 9.1 percent, 8.1 percent, and 6.8 percent, respectively, of total employer
compensation costs in the Midwest.
In the South, wages and salaries averaged $19.39 per hour and comprised 71.1 percent of total employer
compensation, while total benefits, at $7.90 per hour, accounted for the remaining 28.9 percent. Legally
required benefits represented the largest benefit category, averaging $2.15 per hour worked, or 7.9 percent
of total compensation costs. Insurance benefits, at $2.11 per hour, or 7.7 percent of total compensation costs,
represented the second largest benefit category in the South. Paid leave, the third largest benefit category,
averaged $1.83 per hour and represented 6.7 percent of all costs.
Overall, compensation costs among private industry employers in the United States averaged $30.11 per
hour worked in June 2014. Wages and salaries, at $21.02 per hour, accounted for 69.8 percent of these costs,
while benefits, at $9.09, made up the remaining 30.2 percent.
The September 2014 national release on Employer Costs for Employee Compensation is scheduled to
be released on December 10, 2014 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 43,700 occupations selected from a
sample of about 8,900 establishments in private industry. The private industry sample is rotated over
approximately 5 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.
2
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-forprivate-industry-workers-in-15-metropolitan-areas.pdf.
For detailed information on Employer Costs for Employee Compensation, see Chapter 8, National
Compensation Measures, of the BLS Handbook of Methods at www.bls.gov/opub/hom/pdf/homch8.pdf.
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:
1-800-877-8339.
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
3
Table 1. Employer costs per hour worked for employee compensation and costs as a percent of total
compensation: Private industry workers, by census region and division, June 2014
Census region and division (1)
Compensation component
Northeast
Cost
Northeast divisions
Percent
New England
Cost
South
Middle Atlantic
Percent
Cost
Percent
Cost
South divisions
Percent
South Atlantic
Cost
Percent
Total compensation ...........................
Wages and salaries .......................
Total benefits .................................
Paid leave..................................
Vacation..................................
Holiday ...................................
Sick.........................................
Personal .................................
Supplemental pay......................
$35.05
23.95
11.10
2.63
1.32
0.78
0.36
0.17
1.05
100.0
68.3
31.7
7.5
3.8
2.2
1.0
0.5
3.0
$34.80
24.49
10.31
2.42
1.24
0.74
0.29
0.14
0.97
100.0
70.4
29.6
7.0
3.6
2.1
0.8
0.4
2.8
$35.14
23.74
11.40
2.71
1.35
0.79
0.39
0.18
1.08
100.0
67.6
32.4
7.7
3.8
2.3
1.1
0.5
3.1
$27.29
19.39
7.90
1.83
0.94
0.56
0.21
0.10
0.80
100.0
71.1
28.9
6.7
3.5
2.1
0.8
0.4
2.9
$28.06
19.99
8.07
1.95
1.01
0.59
0.23
0.11
0.74
100.0
71.3
28.7
6.9
3.6
2.1
0.8
0.4
2.6
Overtime and premium (2) ......
0.25
0.7
0.25
0.7
0.25
0.7
0.28
1.0
0.24
0.9
Shift differentials .....................
Nonproduction bonuses .........
Insurance...................................
Life..........................................
Health .....................................
Short-term disability................
Long-term disability ................
Retirement and savings.............
Defined benefit .......................
Defined contribution ...............
Legally required benefits ...........
Social Security and Medicare.
0.08
0.72
3.05
0.05
2.86
0.09
0.05
1.54
0.73
0.81
2.84
1.97
0.2
2.1
8.7
0.1
8.2
0.3
0.2
4.4
2.1
2.3
8.1
5.6
0.10
0.63
2.73
0.04
2.57
0.07
0.05
1.39
0.64
0.75
2.80
2.02
0.3
1.8
7.8
0.1
7.4
0.2
0.1
4.0
1.8
2.2
8.0
5.8
0.07
0.76
3.17
0.05
2.97
0.10
0.06
1.60
0.77
0.83
2.85
1.95
0.2
2.2
9.0
0.1
8.4
0.3
0.2
4.5
2.2
2.4
8.1
5.6
0.06
0.46
2.11
0.04
1.98
0.05
0.04
1.01
0.44
0.57
2.15
1.63
0.2
1.7
7.7
0.2
7.3
0.2
0.1
3.7
1.6
2.1
7.9
6.0
0.06
0.44
2.17
0.04
2.04
0.05
0.04
1.01
0.41
0.60
2.20
1.67
0.2
1.6
7.7
0.1
7.3
0.2
0.1
3.6
1.5
2.1
7.8
6.0
Social Security (3) ...............
1.57
4.5
1.61
4.6
1.55
4.4
1.31
4.8
1.35
4.8
Medicare.............................
Federal unemployment
insurance................................
State unemployment
insurance................................
Workers' compensation ..........
0.40
1.1
0.40
1.2
0.40
1.1
0.32
1.2
0.33
1.2
0.04
0.1
0.03
0.1
0.04
0.1
0.03
0.1
0.04
0.1
0.33
0.9
0.34
1.0
0.33
0.9
0.15
0.6
0.16
0.6
0.50
1.4
0.41
1.2
0.53
1.5
0.34
1.2
0.33
1.2
Note: See footnotes at end of table.
4
Table 1. Employer costs per hour worked for employee compensation and costs as a percent of total
compensation: Private industry workers, by census region and division, June 2014 - Continued
Census region and division(1)
Compensation component
South divisions
East South Central
Cost
Percent
Midwest
West South Central
Cost
Percent
Cost
Midwest divisions
Percent
East North Central
Cost
Percent
West North Central
Cost
Percent
Total compensation ...........................
Wages and salaries .......................
Total benefits .................................
Paid leave..................................
Vacation..................................
Holiday ...................................
Sick.........................................
Personal .................................
Supplemental pay......................
$24.33
17.27
7.06
1.57
0.81
0.51
0.17
0.08
0.67
100.0
71.0
29.0
6.4
3.3
2.1
0.7
0.3
2.8
$27.38
19.37
8.01
1.74
0.90
0.55
0.21
0.09
0.95
100.0
70.7
29.3
6.4
3.3
2.0
0.7
0.3
3.5
$28.81
19.96
8.85
1.96
1.06
0.60
0.21
0.10
0.78
100.0
69.3
30.7
6.8
3.7
2.1
0.7
0.3
2.7
$29.12
20.04
9.08
1.96
1.06
0.60
0.20
0.10
0.85
100.0
68.8
31.2
6.7
3.6
2.1
0.7
0.4
2.9
$28.16
19.80
8.36
1.97
1.07
0.59
0.22
0.09
0.62
100.0
70.3
29.7
7.0
3.8
2.1
0.8
0.3
2.2
Overtime and premium (2) ......
0.31
1.3
0.33
1.2
0.24
0.8
0.27
0.9
0.19
0.7
Shift differentials .....................
Nonproduction bonuses .........
Insurance...................................
Life..........................................
Health .....................................
Short-term disability................
Long-term disability ................
Retirement and savings.............
Defined benefit .......................
Defined contribution ...............
Legally required benefits ...........
Social Security and Medicare.
0.04
0.32
2.05
0.04
1.92
0.05
0.04
0.78
0.35
0.43
2.00
1.48
0.2
1.3
8.4
0.2
7.9
0.2
0.2
3.2
1.4
1.7
8.2
6.1
0.05
0.57
2.05
0.05
1.93
0.04
0.04
1.12
0.54
0.58
2.15
1.64
0.2
2.1
7.5
0.2
7.0
0.1
0.1
4.1
2.0
2.1
7.9
6.0
0.07
0.46
2.61
0.04
2.47
0.06
0.05
1.18
0.58
0.59
2.32
1.68
0.2
1.6
9.1
0.1
8.6
0.2
0.2
4.1
2.0
2.1
8.1
5.8
0.08
0.51
2.69
0.04
2.54
0.06
0.05
1.22
0.65
0.57
2.37
1.69
0.3
1.7
9.2
0.1
8.7
0.2
0.2
4.2
2.2
1.9
8.1
5.8
0.05
0.37
2.45
0.04
2.32
0.05
0.04
1.08
0.44
0.65
2.24
1.66
0.2
1.3
8.7
0.1
8.2
0.2
0.2
3.8
1.6
2.3
7.9
5.9
Social Security (3) ...............
1.19
4.9
1.32
4.8
1.36
4.7
1.36
4.7
1.34
4.8
Medicare.............................
Federal unemployment
insurance................................
State unemployment
insurance................................
Workers' compensation ..........
0.28
1.2
0.32
1.2
0.33
1.1
0.33
1.1
0.33
1.2
0.03
0.1
0.03
0.1
0.04
0.1
0.04
0.2
0.04
0.1
0.13
0.5
0.15
0.5
0.21
0.7
0.23
0.8
0.19
0.7
0.36
1.5
0.34
1.2
0.38
1.3
0.40
1.4
0.35
1.2
Note: See footnotes at end of table.
5
Table 1. Employer costs per hour worked for employee compensation and costs as a percent of total
compensation: Private industry workers, by census region and division, June 2014 - Continued
Census region and division(1)
West
Compensation component
Cost
West divisions
Mountain
Percent
Cost
Pacific
Percent
Cost
Percent
Total compensation .........................................
Wages and salaries ......................................
Total benefits ................................................
Paid leave.................................................
Vacation................................................
Holiday .................................................
Sick.......................................................
Personal ...............................................
Supplemental pay.....................................
$31.60
22.14
9.46
2.13
1.11
0.64
0.28
0.10
0.84
100.0
70.1
29.9
6.7
3.5
2.0
0.9
0.3
2.7
$28.66
20.49
8.17
1.91
1.04
0.53
0.23
0.12
0.75
100.0
71.5
28.5
6.7
3.6
1.8
0.8
0.4
2.6
$32.99
22.92
10.07
2.23
1.15
0.70
0.30
0.09
0.88
100.0
69.5
30.5
6.8
3.5
2.1
0.9
0.3
2.7
Overtime and premium (2) ....................
0.22
0.7
0.21
0.7
0.22
0.7
Shift differentials ...................................
Nonproduction bonuses .......................
Insurance..................................................
Life........................................................
Health ...................................................
Short-term disability..............................
Long-term disability ..............................
Retirement and savings............................
Defined benefit .....................................
Defined contribution .............................
Legally required benefits ..........................
Social Security and Medicare...............
0.05
0.58
2.47
0.04
2.36
0.04
0.04
1.35
0.65
0.70
2.67
1.83
0.1
1.8
7.8
0.1
7.5
0.1
0.1
4.3
2.1
2.2
8.4
5.8
0.03
0.51
2.15
0.04
2.02
0.03
0.05
1.09
0.35
0.74
2.27
1.68
0.1
1.8
7.5
0.1
7.1
0.1
0.2
3.8
1.2
2.6
7.9
5.9
0.05
0.61
2.62
0.04
2.52
0.04
0.04
1.47
0.80
0.68
2.86
1.89
0.2
1.8
8.0
0.1
7.6
0.1
0.1
4.5
2.4
2.1
8.7
5.7
Social Security (3) ..............................
1.46
4.6
1.35
4.7
1.52
4.6
Medicare............................................
Federal unemployment insurance ........
State unemployment insurance............
Workers' compensation ........................
0.36
0.04
0.24
0.56
1.2
0.1
0.7
1.8
0.34
0.03
0.18
0.38
1.2
0.1
0.6
1.3
0.38
0.05
0.26
0.64
1.1
0.2
0.8
2.0
(1) The States that comprise the census divisions are: 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 premium pay for work in addition to the regular work schedule (such as overtime, weekends, and holidays).
(3) Comprises the Old-Age, Survivors, and Disability Insurance (OASDI) program.
Note: The sum of individual items may not equal totals due to rounding.
6