Private industry employer costs for employee compensation varied across U.S. regions in June 2025, according to data released by the U.S. Bureau of Labor Statistics. The South recorded the lowest average hourly cost at $39.94, while the Northeast had the highest at $56.67. The Midwest and West reported average hourly costs of $42.13 and $49.85, respectively.
The Employer Costs for Employee Compensation (ECEC) data are derived from the National Compensation Survey, which examines employer expenses related to wages, salaries, and benefits.
In the Northeast region, wages and salaries averaged $39.22 per hour—69.2 percent of total compensation—with benefits making up the remaining 30.8 percent at $17.44 per hour. Paid leave accounted for 8.3 percent of all compensation costs ($4.70 per hour), insurance represented 7.9 percent ($4.47 per hour), and legally required benefits such as Social Security and Medicare made up 7.1 percent ($4.04 per hour).
For employers in the West, wages and salaries were $34.88 per hour (70 percent of compensation), with benefits averaging $14.97 (30 percent). Paid leave was 7.7 percent ($3.82 per hour), legally required benefits were 7.6 percent ($3.80 per hour), and insurance comprised 7.1 percent ($3.52 per hour).
Midwest employers paid an average wage and salary of $29.24 per hour (69.4 percent) with total benefits at $12.89 (30.6 percent). Insurance benefits were the largest benefit expense at $3.46 per hour worked (8.2 percent), followed by legally required benefits at $3.05 (7.3 percent) and paid leave at $3.01 (7.l percent).
In the South region, wages and salaries averaged $28.l66 per hour or 71.l8 percent of overall compensation costs; benefits contributed another $11.l28 or 28.l2 percent to total compensation expenses in this area of the country; both paid leave and insurance each cost employers about $2.l88 an hour—representing l2.l2% apiece—and legally mandated contributions like Social Security added up to about l2.ll%.
Across all private industry employers nationwide, average compensation costs stood at $45.l65 an hour in June 2025: wages/salaries accounted for approximately seventy-percent while nearly thirty-percent went toward employee benefit programs.
The ECEC report covers private industry workers but excludes self-employed individuals, agricultural laborers, and private household staff members; it is based on a probability sample drawn from roughly twenty-six thousand occupational observations across sixty-two hundred establishments.
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
More information on methodology is available through “National Compensation Measures” in the BLS Handbook of Methods: www.bls.gov/opub/hom/ncs/home.htm
Current as well as historical data may be accessed online: www.bls.gov/ecec
The next national release for Employer Costs for Employee Compensation is scheduled for December l2th, 2025.
