PROVIDENCE – Compensation costs among private industry employers in New England averaged $37.12 per hour in December, 19 percent higher than the national average of $31.32 per hour, according to the federal Bureau of Labor Statistics.
Among the nine geographic divisions, private industry total compensation costs in December were highest in the Middle Atlantic division at $38.51, while the East South Central division had the lowest at $24.88 per hour.
In New England, wages and salaries account for 70 percent of total compensation costs, or $25.99 per hour, with benefits comprising 30 percent of costs, or $11.12 per hour.
Benefit costs to employers within the New England division were comprised of insurance – life, health, short- and long-term disability – at $2.96 per hour worked, as well as legally required benefits, which include Social Security and Medicare, at $2.89 per hour, and paid leave, including vacation, sick and personal leave and holiday pay, at $2.71 per hour. Retirement and savings add another $1.51 per hour to the total benefit costs in New England.
The Northeast has the most expensive employer costs in the nation at $38.14 per hour among the four main regions, with the West reporting $32.08. The South had the least expensive costs at $28.81; with the Midwest not far behind at $28.85.
In the Northeast, wages and salaries comprised 71 percent of total costs at $25.42, while benefits represented 29 percent at $12.72.
Nationally, wages and salaries at $21.72 per hour, account for 69 percent of total employer costs, and benefits at $9.60 account for the remaining 31 percent.