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 average hourly cost ranged from $39.94 in the South to $56.67 in the Northeast. The Midwest reported an average of $42.13 per hour, while the West stood at $49.85.
The Employer Costs for Employee Compensation (ECEC) figures are based on the National Compensation Survey, which measures employer expenses for wages, salaries, and benefits among private industry workers.
In the Northeast, wages and salaries averaged $39.22 per hour and made up 69.2 percent of total compensation costs; benefits accounted for 30.8 percent at $17.44 per hour. Paid leave averaged $4.70 per hour worked, or 8.3 percent of all compensation costs; insurance averaged $4.47 per hour (7.9 percent), and legally required benefits such as Social Security and Medicare were $4.04 per hour (7.1 percent).
For the West region, hourly wages and salaries were $34.88—70 percent of total compensation—with benefits averaging $14.97 or 30 percent of compensation costs. Paid leave was reported at $3.82 per hour (7.7 percent), legally required benefits at $3.80 (7.6 percent), and insurance at $3.52 (7.1 percent).
In the Midwest, employers paid an average wage and salary of $29.24 per hour (69.4 percent of total compensation). Benefits made up 30.6 percent ($12.89). Insurance was the highest benefit category at $3.46 per hour worked (8.2 percent), followed by legally required benefits ($3.05; 7.3 percent) and paid leave ($3.01; 7.l percent).
Southern employers paid an average wage and salary of $28.l66 per hour—71 .8 percent of overall compensation—with benefits accounting for 28 .2 percent ($11 .28). Both paid leave and insurance averaged $2 .88 per hour worked (each representing 7 .2 percent); legally required benefits came next at $2 .82 (7 .1 percent).
Nationally, private industry employer compensation costs averaged $45 .65 per hour worked in June 2025: wages and salaries were responsible for 70 .2% ($32 .07) while benefits made up the remaining 29 .8% ($13 .58).
ECEC data are collected from a probability sample that includes about 26 ,400 occupational observations from approximately 6 ,200 private industry establishments over a three-year rotation period to ensure representative coverage.
Employer Costs for Employee Compensation data exclude self-employed individuals, agricultural workers, and private household workers.
Additional information about metropolitan area ECEC estimates is available through the Bureau’s publication on new employer cost data for private industry workers in selected metropolitan areas: www.bls.gov/opub/mlr/cwc/bls-introduces-new-employer-costs-for-employee-compensation-data-for-private-industry-workers-in-15-metropolitan-areas.pdf
Details on methodology can be found in “National Compensation Measures” within the BLS Handbook of Methods: www.bls.gov/opub/hom/ncs/home.htm
Current and historical ECEC data are accessible online: www.bls.gov/ecec
The next national release is scheduled for December l2 ,2025 .
