Employer Costs for Employee Compensation news release text


FOR RELEASE 10:00 A.M. (EDT) FRIDAY, SEPTEMBER 8, 2017				USDL-17-1222

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			EMPLOYER COSTS FOR EMPLOYEE COMPENSATION  JUNE 2017
			
Employer costs for employee compensation averaged $35.28 per hour worked in June 2017, the
U.S. Bureau of Labor Statistics reported today. Wages and salaries averaged $24.10 per hour
worked and accounted for 68.3 percent of these costs, while benefits averaged $11.18 and
accounted for the remaining 31.7 percent. The employer costs for retirement and savings
averaged $1.92 per employee hour worked (5.4 percent of total compensation). (See table 1.)

Total employer compensation costs for private industry workers averaged $33.26 per hour
worked where wages and salaries averaged $23.15 (69.6 percent of total compensation) and
benefit costs averaged $10.11 (30.4 percent). (See table 5.)

Total employer compensation costs for state and local government workers averaged $48.06 per
hour worked, where wages and salaries averaged $30.12 (62.7 percent of total compensation)
and benefit costs averaged $17.94 (37.3 percent). (See table 3.)

Employer Costs for Employee Compensation (ECEC), a product of the National Compensation
Survey, measures employer costs for wages, salaries, and employee benefits for nonfarm
private and state and local government workers.

Table A. Relative importance of employer costs for employee compensation, June 2017


Compensation                            Civilian       Private      State and local
  component                             workers(1)     industry       government
____________________________________________________________________________________________
Wages and salaries                       68.3%          69.6%            62.7%
Benefits                                 31.7           30.4             37.3
   Paid leave                             7.0            6.9              7.5
   Supplemental pay                       3.1            3.5              1.0
   Insurance                              8.7            8.0             11.9
     Health benefits                      8.3            7.5             11.6
   Retirement and savings                 5.4            4.1             11.3
     Defined benefit                      3.5            1.9             10.5
     Defined contribution                 2.0            2.2              0.8
   Legally required                       7.4            7.8              5.6
____________________________________________________________________________________________
   1 Includes workers in the private nonfarm economy except those in private households, and 
     workers in the public sector, except the federal government.

Highlights of employer retirement and savings costs per hour worked for private industry
workers:

 Employer costs for all private industry workers averaged $1.36 per hour worked, or 4.1
percent of total compensation. (See table 5.) 
 Employer costs by occupational group ranged
from $2.80 (4.7 percent of total compensation) for management, professional, and related
workers to 25 cents (1.6 percent) for service workers. (See table 5.) 
 Employer costs by bargaining status were $4.54 (9.2 percent of total compensation) for
union workers and $1.05 (3.3 percent) for nonunion workers. Defined benefit plan costs were
significantly higher for union workers at $3.25 (6.6 percent) as compared with 36 cents (1.1
percent) for nonunion workers. (See table 5.) 
 Employer costs by industry were $2.22 (5.6 percent of total compensation) in goods-
producing industries and $1.19 (3.7 percent) in service- providing industries. Across major
industry groups costs ranged from $2.58 in information to 21 cents in leisure and
hospitality. (See chart 1 and table 6.)
 Employer costs among Census regions averaged $1.18 (3.9 percent of total compensation) in
the South, $1.25 (4.1 percent) in the Midwest, $1.45 (4.2 percent) in the West, and $1.75
(4.2 percent) in the Northeast. (See table 7.) 
 Employer costs by establishment size averaged $1.99 (5.1 percent of total compensation)
for establishments with 100 workers or more and 84 cents (3.0 percent) for establishments 
with 1 to 99 workers. (See chart 2 and table 8.) 
 Employer costs by work status averaged $1.73 (4.4 percent of total compensation)
for full-time workers in private industry and 37 cents (2.1 percent) for part-time workers.
Costs for full-time workers in service occupations averaged 44 cents per hour worked,
compared with 9 cents for part-time workers. (See table 11.) 

Other benefit categories in private industry

Private industry employer costs for paid leave averaged $2.30 per hour
worked (6.9 percent of total compensation), supplemental pay averaged $1.18 (3.5 percent),
insurance benefits averaged $2.66 (8.0 percent), and legally required benefits averaged $2.61
(7.8 percent). (See table A and table 5.) 
_____________ 
Employer Costs for Employee Compensation for September 2017 is scheduled to be released on
Friday, December 15, 2017, at 10:00 a.m. (EST).

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Last Modified Date: September 08, 2017