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Topic Archives: Union Membership

A Truckload of Transportation Statistics

BLS recently participated in the North American Transportation Statistics Interchange, better known as the NATS Interchange. (Not to be confused with the local baseball team, as the Washington Nationals are known. I look forward to the day when I’m back in the stands yelling “N-A-T-S, Nats, Nats, Nats — whoooo!” after each run scores. But I digress.)

Like many recent conferences, the NATS Interchange was held virtually and focused on the pandemic—how statistical agencies in the United States, Mexico, and Canada continued operations, produced new data, and are planning for the future. Our friends at the Bureau of Transportation Statistics, part of the U.S. Department of Transportation, led the U.S. effort and invited several other U.S. statistical agencies to share information. BLS was asked to participate in a short session on the transportation-related information we produce that may be useful in measuring the economic recovery. This turned into a great opportunity to focus on the BLS Industry at a Glance feature on our website, and to look further into what BLS has available related to transportation.

We classify workplaces by industry based on their principal product or activity. Industries are categorized using the North American Industry Classification System, or NAICS. BLS releases considerable data by NAICS classification, including employment, wages, workplace safety, and more. The BLS Industry at a Glance webpages bring these different statistics together for over 100 industries. Want to know everything BLS produces for the transportation and warehousing industry classification (NAICS codes 48–49)? It’s all there at Industry at a Glance. Want to dig deeper and look just at the air transportation industry (NAICS code 481)? We’ve got that, too. Of course, we may have less information available as you ask for more detailed classifications, but if we’ve got it, it’ll be there.

Let’s look at a couple of examples, starting with employment. In April 2020, BLS reported a loss of more than 20 million jobs in one month, based on data from the Current Employment Statistics program. The job losses were widespread, including a loss of 570,000 jobs in the transportation and warehousing industry from February to April. That’s a decline of 10 percent from the January 2020, level of 5.7 million workers in this industry. Through December, the sector had recovered about 84 percent of that job loss and still had a net loss of 90,000 jobs since January.

But looking at the overall sector hides some of the details. The job losses in early 2020 occurred in all components of transportation and warehousing except couriers and messengers. This industry recorded an increase of 210,000 employees from January to December 2020, likely due to the surge in online shopping and associated shipping and delivery. While initially losing jobs, employment in warehousing and storage was up 79,000 in December from the March level. All other sectors continue to have net losses. Of particular note is employment in air transportation, which showed inconsistent recovery for several months before recording new jobs losses in October.

Share of January 2020 employment in selected transportation industries through December 2020

Editor’s note: Data for this chart are available in the table below.

Other details you can glean from the Industry at a Glance page for Transportation and Warehousing:

  • 16.1 percent of wage and salary workers in the transportation and warehousing industry were members of a union in 2019, and 17.6 percent were represented by a union.
  • The occupation with the most workers in this industry is heavy and tractor-trailer truck drivers, with nearly 1.1 million workers in 2019. The next largest occupation was school bus drivers, with about 284,000 workers.
  • 948 workers in this industry suffered a fatal work injury in 2019, up from 909 fatalities in 2018.

In preparing for the NATS interchange, BLS took a broader look at the world of transportation statistics. Turns out, if you look beyond the industry classification, you find even more information. For example, BLS programs on prices and spending look at what consumers spend on transportation, and the change in transportation prices over time. From the BLS Consumer Expenditure Surveys, we know the average “consumer unit” (our fancy name for households) spent an average of $10,742 on transportation in 2019, including vehicle purchases and maintenance and public transportation.

The pandemic revealed major disruptions in certain transportation activity, and those disruptions were evident in the BLS Consumer Price Index. The CPI as a whole declined by 0.8 percent in April, the largest one-month decline in more than a decade. Many of the declines were the result of stay-at-home orders and related shutdowns, as prices for gasoline, airfares, and other transportation-related items declined sharply. Of note was a sharp decline in the price of gasoline—down over 20 percent in April.

Percent change in consumer prices for transportation-related items, April and May 2020

Editor’s note: Data for this chart are available in the table below.

To stretch the transportation concept just a little further, the BLS Census of Fatal Occupational Injuries records the “event or exposure” that results in each fatal work injury. Of the 5,333 fatal work injuries in 2019, nearly 40 percent were the result of a transportation incident. Such incidents may occur to workers in the transportation industry, such as truck drivers, but also to many other workers, including farmers, protective service officers, landscapers, and construction laborers. Transportation incidents are most often on a roadway but can also involve aircraft, rail, and water vehicles.

The NATS interchange asked BLS to consider what data might be helpful in tracking the recovery. Many of the transportation statistics discussed here, such as employment, consumer expenditures, and price changes, will likely provide a clue about returning to activity levels reached before the pandemic.

This exercise provided an opportunity to dig a little deeper into the transportation and warehousing industry and to expand the definition to explore related information. The BLS Industry at a Glance webpages offer that same opportunity to explore the current economic landscape of over 100 industries.

Share of January 2020 employment in selected transportation industries through December 2020
IndustryJanuaryAprilDecember

Transportation and warehousing

100.0%90.0%98.4%

Air transportation

100.085.176.9

Warehousing and storage

100.093.4107.9

Couriers and messengers

100.0100.2124.5
Percent change in consumer prices for transportation-related items, April and May 2020
ItemAprilMay

Gasoline (all types)

-20.6-3.5

Car and truck rental

-16.6-3.5

Airline fares

-15.2-4.9

Motor vehicle insurance

-7.2-8.9

Lodging away from home

-7.1-1.5

Labor Day 2020 Fast Facts

I have been Commissioner of Labor Statistics for about a year and a half now, and what a time it has been! BLS has faced many challenges throughout its history, but none quite like those from the COVID-19 pandemic. All of our staff moved to full-time telework March 16, and I am so proud of how well they have worked under trying circumstances. In a very short time—days, not weeks—we had to change our data collection processes to eliminate in-person collection and move to a combination of telephone, internet, and video. We recognize how challenging it is for our survey respondents to provide data during the pandemic, and I am very grateful for their cooperation. Response rates have dipped a bit in some programs, but the quality of our samples remains strong across the board. Despite all of the challenges, BLS has been able to produce all of our economic reports without interruption.

The pandemic has taught us there’s an unlimited appetite for data. The U.S. statistical system is working to satisfy that appetite. At BLS, we strive for more and better data to understand the hardships caused by the pandemic. Starting in May we added new questions to our monthly survey of households. The questions ask whether people teleworked or worked from home because of the pandemic; whether people were unable to work because their employers closed or lost business; whether they were paid for that missed work; and whether the pandemic prevented job-seeking activities. We continue to gather new data from those questions.

We collaborated with our partners at other U.S. statistical agencies to find out how many people received payments from the Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020. For those who received payments, we asked how they used them.

Soon we will have new data about how businesses have responded to the pandemic. These data are from a brand new survey that seeks to identify changes to business operations, employment, workforce flexibilities, and benefits as a result of the pandemic.

These are just a few examples of how our data collection has responded to the pandemic. Good data are essential for identifying problems, guiding policymakers, and gauging whether and how fast conditions improve for workers, jobseekers, families, and businesses.

Labor Day is a good time to reflect on where we are. Despite these difficult times, I hope you are able to enjoy the long holiday weekend. Take a moment to look at some fast facts we’ve compiled on the current picture of our labor market.

Working

Our monthly payroll survey shows that employment had been increasing through February 2020. With March came the pandemic and the job losses related to it. We lost more than 22 million jobs in March and April and then regained about 48 percent of them in May, June, July, and August.

The employment–population ratio was 56.5 percent in August. This ratio is the number of people employed as a percent of the population age 16 and older. The ratio was 61.1 percent in February.

There were 7.6 million people working part time for economic reasons in August 2020. These are people who would have preferred full-time employment but were working part time because their hours had been reduced or they were unable to find full-time jobs. This number was down from 10.9 million in April. The number was 4.3 million in February.

Not Working

The unemployment rate reached 14.7 percent in April 2020. That was the highest rate, and the largest over-the-month increase, in the history of the data back to January 1948. The rate has fallen since then, reaching 8.4 percent in August. The rate was 3.5 percent back in February, the lowest since 1969.

We have noted the challenges of measuring unemployment during this pandemic. The rates we have seen since March likely understate unemployment, but the trend is clear. The rate rose sharply in March and even more sharply in April and has trended down since April.

Among the major worker groups in August 2020, the unemployment rate was 8.4 percent for adult women and 8.0 percent for adult men. The rate for teenagers was 16.1 percent. The unemployment rate was 13.0 percent for Blacks or African Americans, 10.7 percent for Asians, 10.5 percent for Hispanics or Latinos, and 7.3 percent for Whites.

Job Openings

On the last business day of June 2020, the number of nonfarm job openings was 5.9 million. That was a decline of 18 percent from June 2019.

The ratio of unemployed people per job opening was 3.0 in June 2020. Since the most recent peak of 4.6 in April 2020, the ratio of unemployed people per job opening declined in May and June. In February 2020, there was 0.8 unemployment person per job opening.

Pay and Benefits

Civilian compensation (wage and benefit) costs increased 2.7 percent in June 2020 from a year earlier. After adjusting for inflation, real compensation costs rose 2.1 percent over the year.

Paid leave benefits are available to most private industry workers. The access rates in March 2019 were 73 percent for sick leave, 79 percent for vacation, and 79 percent for holidays.

In March 2019, civilian workers with employer-provided medical plans paid 20 percent of the cost of medical care premiums for single coverage and 33 percent for family coverage.

Productivity

Labor productivity—output per hour worked—in the U.S. nonfarm business sector grew 2.8 percent from the second quarter of 2019 to the second quarter of 2020. That increase reflects large pandemic-related declines in output (−11.2 percent) and hours worked (−13.6 percent).

Safety and Health

In 2018, there were 5,250 fatal workplace injuries. That was a 2-percent increase from 2017 and was the highest number of fatal work injuries in a decade. It was, however, below the numbers of workplace deaths in the 1990s, when over 6,000 fatalities occurred per year.

There were about 2.8 million nonfatal workplace injuries and illnesses reported in 2018 by private industry employers. This resulted in an incidence rate of 2.8 cases per 100 full-time workers in 2018. The rate is down from 9.2 cases per 100 full-time workers in 1976.

Unionization

The union membership rate—the percent of wage and salary workers who were members of unions—was 10.3 percent in 2019, down by 0.2 percentage point from 2018. In 1983, the first year for which comparable union data are available, the union membership rate was 20.1 percent.

Total employer compensation costs for private-industry union workers were $48.57 and for nonunion workers $34.16 per employee hour worked in March 2020. The cost of benefits accounted for 40.5 percent of total compensation (or $19.65) for union workers and 28.4 percent (or $9.71) for nonunion workers.

Looking to the Future

We released our latest set of long-term employment projections September 1. We project employment to grow by 6.0 million jobs from 2019 to 2029. That is an annual growth rate of 0.4 percent, slower than the 2009–19 annual growth rate of 1.3 percent. The healthcare and social assistance sector is projected to add the most new jobs, and 6 of the 10 fastest growing occupations are related to healthcare. These projections do not include impacts of the COVID-19 pandemic and response efforts. We develop the projections using models based on historical data. The historical data for this set of projections cover the period through 2019, so all input data precede the pandemic. We will continue to examine the effects of the pandemic as we update our projections next year and the years that follow.

From an American worker’s first job to retirement and everything in between, BLS has a stat for that! Want to learn more? Follow us on Twitter @BLS_gov.

Labor Day 2019 Fast Facts

I have been Commissioner of Labor Statistics for 5 months now, and I continue to be amazed by the range and quality of data we publish about the U.S. labor market and the well-being of American workers. As we like to say at BLS, we really do have a stat for that! We won’t rest on what we have done, however. We continue to strive for more data and better data to help workers, jobseekers, students, businesses, and policymakers make informed decisions. Labor Day is a good time to reflect on where we are. This year is the 125th anniversary of celebrating Labor Day as a national holiday. Before you set out to enjoy the long holiday weekend, take a moment to look at some fast facts we’ve compiled on the current picture of our labor market.

Working

Working or Looking for Work

  • The civilian labor force participation rate—the share of the population working or looking for work—was 63.0 percent in July 2019. The rate had trended down from the 2000s through the early 2010s, but it has remained fairly steady since 2014.

Not Working

  • The unemployment rate was 3.7 percent in July. In April and May, the rate hit its lowest point, 3.6 percent, since 1969.
  • In July, there were 1.2 million long-term unemployed (those jobless for 27 weeks or more). This represented 19.2 percent of the unemployed, down from a peak of 45.5 percent in April 2010 but still above the 16-percent share in late 2006.
  • Among the major worker groups, the unemployment rate for teenagers was 12.8 percent in July 2019, while the rates were 3.4 percent for both adult women and adult men. The unemployment rate was 6.0 percent for Blacks or African Americans, 4.5 percent for Hispanics or Latinos, 2.8 percent for Asians, and 3.3 percent for Whites.

Job Openings

Pay and Benefits

  • Average weekly earnings rose by 2.6 percent from July 2018 to July 2019. After adjusting for inflation in consumer prices, real average weekly earnings were up 0.8 percent during this period.
  • Civilian compensation (wage and benefit) costs increased 2.7 percent in June 2019 from a year earlier. After adjusting for inflation, real compensation costs rose 1.1 percent over the year.
  • Paid leave benefits are available to most private industry workers. The access rates in March 2018 were 71 percent for sick leave, 77 percent for vacation, and 78 percent for holidays.
  • About 91 percent of civilian workers with access to paid holidays receive Labor Day as a paid holiday.
  • In March 2018, civilian workers with employer-provided medical plans paid 20 percent of the cost of medical care premiums for single coverage and 32 percent for family coverage.

Productivity

  • Labor productivity—output per hour worked—in the U.S. nonfarm business sector grew 1.8 percent from the second quarter of 2018 to the second quarter of 2019.
  • Some industries had much faster growth in 2018, including electronic shopping and mail-order houses (10.6 percent) and wireless telecommunications carriers (10.1 percent).
  • Multifactor productivity in the private nonfarm business sector rose 1.0 percent in 2018. That growth is 0.2 percentage point higher than the average annual rate of 0.8 percent from 1987 to 2018.

Safety and Health

Unionization

  • The union membership rate—the percent of wage and salary workers who were members of unions—was 10.5 percent in 2018, down by 0.2 percentage point from 2017. In 1983, the first year for which comparable union data are available, the union membership rate was 20.1 percent.

Work Stoppages

  • In the first 7 months of 2019, there have been 307,500 workers involved in major work stoppages that began this year. (Major work stoppages are strikes or lockouts that involve 1,000 or more workers and last one full shift or longer.) For all of 2018, there were 485,200 workers involved in major work stoppages, the largest number since 1986, when about 533,100 workers were involved.
  • There have been 15 work stoppages beginning in 2019. For all of 2018, 20 work stoppages began during the year.

Education

  • Occupations that typically require a bachelor’s degree for entry made up 22 percent of employment in 2018. This educational category includes registered nurses, teachers at the kindergarten through secondary levels, and many management, business and financial operations, computer, and engineering occupations.
  • For 18 of the 30 occupations projected to grow the fastest between 2016 and 2026, some postsecondary education is typically required for entry. Be sure to check out our updated employment projections, covering 2018 to 2028, that we will publish September 4!

From an American worker’s first job to retirement and everything in between, BLS has a stat for that! Want to learn more? Follow us on Twitter @BLS_gov.

Why This Counts: What Do We Know about Strikes and Lockouts?

Strikes and lockouts? Aren’t those 1940s-50s-60s economic activities? Sounds like we are taking a trip to the distant past with Sherman and Mr. Peabody in the WABAC machine. (For you younger readers, these characters can be found in the Adventures of Rocky and Bullwinkle and Friends, a TV show from the early 1960s.) BLS first collected data on labor and management disputes (work stoppages) in the 1880s. BLS has continuously published work stoppage information since 1947, for events covering at least 1,000 workers. Recently, high profile work stoppages by public school teachers and others have kept these types of activities in the news.

What are work stoppages?

The work stoppages program provides monthly and annual data on major work stoppages involving 1,000 or more workers and lasting one full shift or longer. For this report, BLS does not differentiate between strikes and lockouts.

  • Strikes are a temporary stoppage of work by a group of employees to express a grievance, enforce a demand, or protest the terms, conditions, or provisions of a contract.
  • Lockouts are a temporary denial of employment by management.

Detailed monthly reports from 1993 to the present provide the organizations and unions involved, along with the locations, industries, number of workers directly involved, and days of idleness.

Who uses these data?

Work stoppages provide media, researchers, labor relations specialists, unions, and government agencies with information about labor-management disputes. While the work stoppages program does not report on the nature of the dispute, identifying the details of parties involved helps users assess the impact of compensation trends, union membership and activity, and legislation.

Has work stoppage activity changed over time?

Since BLS began reporting on work stoppages, declines in union membership, the growth of the service industry, technological changes, and other factors have led to a significant reduction in the number of work stoppages. Between 1947 and 1956, there were 3,438 work stoppages. In the decade from 2007 to 2016, there were 143 stoppages. In 2017, there were 7 work stoppages, and in 2018 there were 20.

Number of work stoppages by decade

Editor’s note: Data for this chart are available in the table below.

Annual work stoppages involving 1,000 or more workers, 1947–2018

Editor’s note: Data for this chart are available in the table below.

Decreases in the number of work stoppages and the number of workers involved are especially noticeable during recessions. These levels reached an all-time low at the end of the 2007–09 recession. In 1952, there were 2,746,000 workers involved in work stoppages, whereas in 2018 there were 485,000 workers involved.

Number of workers involved in major work stoppages, 1947–2018

Editor’s note: Data for this chart are available in the table below.

Another way to evaluate the impact of work stoppages on the national economy is by looking at the number of days workers are away from work because of strikes or lockouts. The number of days of idleness reached a peak in 1959, at about 60,850,000 days. The second largest number was in 1970, with 52,761,000 of days of idleness. In 2018, there were 2,815,400 days of idleness. Number of days idle from work stoppages involving 1,000 or more workers, 1947–2018

Editor’s note: Data for this chart are available in the table below.

Where are work stoppages most prevalent?

Of the 559 major work stoppages between 1993 and 2018, 423 occurred in private industry, 95 in local government, 40 in state government, and 1 in both state and local government. Most stoppages during that period, 458, occurred within individual states, while 101 occurred in two or more states. California, the state with the largest share of national employment (13.6 percent), had the largest share of work stoppages, 24.2 percent. Texas, which accounts for 9.6 percent of national employment, accounted for 2.9 percent of all work stoppages (excluding interstate and nationally reported stoppages).

Share of national employment and share of major work stoppages by state, 1993–2018

Editor’s note: Data for this chart are available in the table below.

These data also allow users to evaluate differences in the number of work stoppages by industry. From 1993 to 2018, there were almost as many stoppages in manufacturing (158) as the next two industries combined. Health care and social assistance had 83 work stoppages, while educational services had 79 work stoppages. Of the 79 educational services stoppages, 75 were in state and local government, with 50 occurring in local government and 25 in state government.Number of major work stoppages by industry, 1993–2018

Editor’s note: Data for this chart are available in the table below.

Want to know more?

We hope this discussion of work stoppages and a look to the past was almost as good as using the WABAC machine!

Number of work stoppages by decade
Decade Number
1947–1956 3,438
1957– 1966 2,500
1967–1976 3,321
1977–1986 1,446
1987–1996 404
1997–2006 240
2007–2016 140
Annual work stoppages involving 1,000 or more workers, 1947–2018
Year Number of work stoppages Number of workers involved Number of days idle
1947 270 1,629,000 25,720,000
1948 245 1,435,000 26,127,000
1949 262 2,537,000 43,420,000
1950 424 1,698,000 30,390,000
1951 415 1,462,000 15,070,000
1952 470 2,746,000 48,820,000
1953 437 1,623,000 18,130,000
1954 265 1,075,000 16,630,000
1955 363 2,055,000 21,180,000
1956 287 1,370,000 26,840,000
1957 279 887,000 10,340,000
1958 332 1,587,000 17,900,000
1959 245 1,381,000 60,850,000
1960 222 896,000 13,260,000
1961 195 1,031,000 10,140,000
1962 211 793,000 11,760,000
1963 181 512,000 10,020,000
1964 246 1,183,000 16,220,000
1965 268 999,000 15,140,000
1966 321 1,300,000 16,000,000
1967 381 2,192,000 31,320,000
1968 392 1,855,000 35,367,000
1969 412 1,576,000 29,397,000
1970 381 2,468,000 52,761,000
1971 298 2,516,000 35,538,000
1972 250 975,000 16,764,000
1973 317 1,400,000 16,260,000
1974 424 1,796,000 31,809,000
1975 235 965,000 17,563,000
1976 231 1,519,000 23,962,000
1977 298 1,212,000 21,258,000
1978 219 1,006,000 23,774,000
1979 235 1,021,000 20,409,000
1980 187 795,000 20,844,000
1981 145 729,000 16,908,000
1982 96 656,000 9,061,000
1983 81 909,000 17,461,000
1984 62 376,000 8,499,000
1985 54 324,000 7,079,000
1986 69 533,000 11,861,000
1987 46 174,000 4,481,000
1988 40 118,000 4,381,000
1989 51 452,000 16,996,000
1990 44 185,000 5,926,000
1991 40 392,000 4,584,000
1992 35 364,000 3,989,000
1993 35 182,000 3,981,000
1994 45 322,000 5,021,000
1995 31 192,000 5,771,000
1996 37 273,000 4,889,000
1997 29 339,000 4,497,000
1998 34 387,000 5,116,000
1999 17 73,000 1,996,000
2000 39 394,000 20,419,000
2001 29 99,000 1,151,000
2002 19 46,000 659,600
2003 14 129,200 4,091,200
2004 17 170,700 3,344,100
2005 22 99,600 1,736,100
2006 20 70,100 2,687,500
2007 21 189,200 1,264,800
2008 15 72,200 1,954,100
2009 5 12,500 124,100
2010 11 44,500 302,300
2011 19 112,500 1,020,200
2012 19 148,100 1,130,800
2013 15 54,500 289,900
2014 11 34,300 200,200
2015 12 47,300 740,000
2016 15 99,400 1,543,400
2017 7 25,300 439,800
2018 20 485,200 2,815,400
Share of national employment and share of major work stoppages by state, 1993–2018
State Share of national employment Share of major work stoppages
California 13.6% 24.2%
Texas 9.6 2.9
New York 6.7 8.8
Florida 7.1 0.7
Pennsylvania 4.4 8.1
Illinois 4.4 9.1
Ohio 4.0 7.5
Georgia 3.5 1.3
Michigan 3.4 6.3
North Carolina 3.4 1.1
New Jersey 3.1 3.8
Number of major work stoppages by industry, 1993–2018
Industry Number of stoppages
Manufacturing 158
Health care and social assistance 83
Educational services 79
Construction 61
Transportation and warehousing 54
Public administration 23
Retail Trade 22
Information 20
Utilities 14
Administrative and support and waste management and remediation services 12
Accomodation and food services 10
Mining 8
Wholesale trade 4
Finance and insurance 4
Real estate and rental and leasin 3
Professional, scientific, and technical services 2
Arts, entertainment, and recreation 2

Wages and Benefits in a City Near You

This started out as a blog about wages and benefits in New York City. But then I shared it with some colleagues, who thought it was too Gotham-centric. My real purpose is to highlight the data on employer costs for wages and benefits in several large metropolitan areas, including New York.

But maybe I should back up a little. Since 1986, BLS has published information on what it costs employers to employ their workforce. Employer Costs for Employee Compensation look at what employers spend on wages and benefits. Over the years, we have expanded the data to provide more industry and occupational detail and other job characteristics, such as union versus nonunion status and full-time versus part-time work. For the past decade, information has been available for private industry workers in 15 metropolitan areas, including New York. More on that in a moment.

Across the United States, private employers spent an average of $34.17 per hour worked on wages and benefits in March 2018. Of this amount, 69.5 percent ($23.76) went for wages. The rest (30.5 percent or $10.41) was for a wide range of benefits, including paid time off, insurances, retirement and savings plans, and legally required benefits (for example, the employer’s share of Social Security taxes).

There is a lot of variation around that average. For example, private employers in the financial activities industry spent an average of $49.46 per hour worked on wages and benefits, while employers in the leisure and hospitality industry spent less than one-third of that amount — $14.94. And the share of compensation dollars going toward benefits also varies — 40.4 percent for union workers, compared with 29.1 percent for nonunion workers.

Employer costs per hour worked for employee compensation, private industry, selected job characteristics, March 2018

Editor’s note: Data for this chart are available in the table below.

So how can you use this information? If you run a business, you might compare your compensation costs to the average for your industry. And you might see how your split between wage and benefit costs stacks up. As an employee, you might also check how you fare against the average.

Private employers in the New York metropolitan area (you knew I would get there eventually) spent $45.61 per hour worked to compensate their workers — fully a third more than the national average. New York was one of three metropolitan areas to have costs in the mid-$40 range, along with Boston and Seattle. All were eclipsed by the San Jose-San Francisco-Oakland area, with average compensation costs of $56.92 per hour worked. In contrast, employers in Miami averaged $31.32.

Employer costs per hour worked for employee compensation, private industry workers in selected metropolitan areas, March 2018

Editor’s note: Data for this chart are available in the article “Compensation costs in San Jose-San Francisco-Oakland averaged $56.92 per hour in March 2018.”

How these costs are split between wages and benefits can vary for many reasons. These include the industry and occupation mix in an area, the extent of collective bargaining, local benefit practices (and legal requirements), and the generosity of benefit plans. Many benefits, such as paid leave and employer matching contributions to 401(k) plans, are tied partly to wages. The higher the wages, the higher the cost of benefits.

With this in mind, the data tell a couple of different stories. On the one hand, the share of compensation costs going toward benefits hovers around the national average (30.5 percent) in all areas, ranging from 27.7 percent in Dallas to 33.6 percent in Detroit. But the actual dollar amounts vary. Employers spend an average of $8.92 per hour worked on benefits in Miami and nearly twice that much ($17.12) in the San Francisco Bay Area. As noted, many of these costs are tied to wages.

Again, this information might be helpful to compare your compensation costs to the average in your area. Businesses might use the data when making relocation or expansion decisions. Or you might just call your friends in New York and show off how much you know about the Big Apple.

We update the national information quarterly, 3 months following the reference date. Data for the 15 metropolitan areas is available once a year — in the June release providing information for March. To keep the data consistent, I’ve used March 2018 data in this blog. The next release, with December 2018 data, is scheduled for March 19. Watch for these data coming your way soon. We also have more charts on employer costs for employee compensation.

Employer costs per hour worked for employee compensation, private industry, selected job characteristics, March 2018
Characteristic Wages Benefits
Union workers $28.42 $19.23
Nonunion workers 23.31 9.56
1–99 workers 20.87 7.92
100–499 workers 23.94 10.82
500 workers or more 32.00 17.16
Financial activities 32.53 16.93
Leisure and hospitality 11.73 3.21