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 cost at $39.94 per hour, while the Northeast had the highest at $56.67 per hour. In comparison, employers in the Midwest paid an average of $42.13 per hour and those in the West paid $49.85.
The Employer Costs for Employee Compensation (ECEC) report is based on the National Compensation Survey, which measures wages, salaries, and benefits costs for employers. Data are collected from a sample of about 6,200 private industry establishments and approximately 26,400 occupational observations during each survey period.
In the Northeast region, wages and salaries averaged $39.22 per hour and made up 69.2 percent of total compensation costs; benefits accounted for $17.44 or 30.8 percent. Paid leave was $4.70 per hour (8.3 percent), insurance averaged $4.47 (7.9 percent), and legally required benefits such as Social Security and Medicare were $4.04 (7.1 percent).
For the West region, hourly wages and salaries averaged $34.88 or 70 percent of compensation costs; benefits were $14.97 or 30 percent of total costs. Paid leave stood at $3.82 per hour (7.7 percent), legally required benefits were $3.80 (7.6 percent), and insurance was $3.52 (7.1 percent).
Midwest employers reported an average wage and salary cost of $29.24 per hour—69.4 percent of compensation—with benefits averaging $12.89 or 30.6 percent of total costs in June 2025; insurance ($3.46), legally required benefits ($3.05), and paid leave ($3.01) represented between 7-8 percent each.
In the South, wages and salaries averaged $28.66 per hour (71.8 percent) while benefits accounted for $11.28 (28.2 percent). Both paid leave and insurance averaged $2.88 per hour worked (7.2 percent each); legally required benefits were close behind at $2.82 (7.l percent).
Nationally, private industry employer compensation costs averaged $45.l65 per hour worked in June 2025; wages and salaries comprised about 70 percent ($32.l07) with benefits making up nearly 30 percent ($13.l58).
The next national release on Employer Costs for Employee Compensation is scheduled for December l2, 2025.
Employer Costs for Employee Compensation data exclude self-employed individuals, agricultural workers, and private household workers from its private industry coverage.
Additional information on metropolitan area ECEC estimates can be found 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.
Further details about ECEC methodology are available in the BLS Handbook of Methods at www.bls.gov/opub/hom/ncs/home.htm.
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