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For release 10:00 a.m. (ET) Thursday, September 16, 2021Technical information:Media contact:USDL-21-1647(202) 691-6199 [email protected] www.bls.gov/ect(202) 691-5902 [email protected] COSTS FOR EMPLOYEE COMPENSATION – JUNE 2021Employer costs for employee compensation for civilian workers averaged 38.91 per hour worked inJune 2021, the U.S. Bureau of Labor Statistics reported today. Wage and salary costs averaged 26.85per hour worked or 69.0 percent of total compensation, while benefit costs were 12.06 or 31.0 percentof total compensation. The average cost for health insurance benefits was 3.09 per hour worked or 8.0percent of total compensation. (See charts 1 and 2, and table 1.)State and local government worker compensation costs for employers averaged 53.59 per hourworked in June 2021. Wage and salary costs averaged 33.09 and accounted for 61.7 percent ofemployer costs, while benefit costs averaged 20.50 and accounted for 38.3 percent. The average cost ofhealth insurance benefits was 6.10 per hour worked and accounted for 11.4 percent of totalcompensation in June 2021. (See charts 1 and 2, and table 1.)Chart 1. Employer costs per employee hourworked, June 2021Chart 2. Health insurance costs per employeehour worked, June 2021 60.00 25.00 50.00 20.00 40.00 15.00 30.00 10.00 20.00 5.00 10.00 0.00CivilianTotal compensationPrivate industryState and localgovernmentWages and salariesBenefits 0.00CivilianPrivate industryTotal benefitsState and localgovernmentHealth insurancePrivate industry worker compensation costs for employers averaged 36.64 per hour worked in June2021. Wage and salary costs averaged 25.89 and accounted for 70.6 percent of employer costs, whilebenefit costs averaged 10.76 and accounted for 29.4 percent. (See charts 1 and 2, and table 1.)Coronavirus (COVID-19) Pandemic Impact on June 2021 ECEC DataThe Employer Costs for Employee Compensation (ECEC) reference date was June 12, 2021. Responserates for June were comparable with prior releases, and no changes in estimation procedures werenecessary. Additional information is available at www.bls.gov/covid19/home.htm.

Insurance costs in private industry highlightsThe average cost of health insurance benefits was 2.63 per hour worked and accounted for 7.2 percentof total compensation in June 2021. Highlighted health insurance estimates are available through thedatabase query tool at www.bls.gov/ncs/ect/data.htm.Occupational groupAmong occupational groups, health insurance costs ranged from 1.06 per hour worked (5.8 percent oftotal compensation) for service occupations to 4.10 (6.6 percent of total compensation) formanagement, professional, and related occupations. (See chart 3.)Bargaining unit status (union and nonunion)Health insurance cost employers 2.31 (6.5 percent of total compensation) for nonunion workers and 6.42 per hour worked (12.6 percent) for union workers. (See chart 4.)Chart 3. Health insurance costs per employeehour worked by occupational group, June 2021Chart 4. Health insurance costs per employeehour worked by bargaining status, June 2021 4.50 25.00 3.75 20.00 3.00 15.00 2.25 10.00 1.50 5.00 0.75 0.00ServiceSales and officeProduction,transportation,and ntenance 0.00Management,professional,and relatedUnionTotal benefitsNonunionHealth insuranceIndustry groupAmong major industry groups, health insurance costs ranged from 0.67 per hour worked (4.1 percent oftotal compensation) in leisure and hospitality to 4.53 (7.9 percent) in information.Establishment employment sizeHealth insurance costs by establishment employment size ranged from 1.66 per employee hour worked(5.6 percent of total compensation) in the smallest establishments (1-49 workers) to 4.62 (8.5 percent)in the largest establishments (500 workers or more).Census divisionAmong census divisions, health insurance costs ranged from 1.88 (5.9 percent of total compensation)in West South Central to 3.10 per employee hour worked (7.1 percent) in the Pacific.Other insurance benefit costsOther private industry insurance benefit costs were 0.04 per employee hour worked (0.1 percent oftotal compensation) for life insurance, 0.04 (0.1 percent) for long-term disability, and 0.08 (0.2percent) for short-term disability.-2-

TECHNICAL NOTEEmployer Costs for Employee Compensation (ECEC), a product of the National Compensation Survey,provides the average employer cost for wages and salaries as well as benefits per employee hourworked. The ECEC covers the civilian economy, which includes data from both private industry andstate and local government. Excluded from private industry are the self-employed, agricultural workers,and private household workers. Federal government workers are excluded from the public sector.Total benefit costs consist of five major categories and include 18 benefit costs: Paid leave - vacation, holiday, sick, and personal leave;Supplemental pay - overtime and premium, shift differentials, and nonproduction bonuses;Insurance - life, health, short-term and long-term disability;Retirement and savings - defined benefit and defined contribution; andLegally required benefits - Social Security (refers to Old-Age, Survivors, and DisabilityInsurance (OASDI) program), Medicare, federal and state unemployment insurance, andWorkers’ Compensation.All workers are included in the benefit cost estimates including those that do not have plan access or donot participate. Costs are also affected by other factors such as cost sharing between employers andemployees, plan features, and plan generosity. For the latest information on the percentage of workerswith access to and participating in employer-sponsored benefit plans, including health care andretirement and savings plans, see www.bls.gov/ebs.The “National Compensation Measures” provides additional details on the sample design, calculationmethodology, and resources explaining changes over time. (See www.bls.gov/opub/hom/ncs/home.htm.)Additional ECEC estimates, including historical data, are available in the ECEC database query tool atwww.bls.gov/ncs/ect/data.htm.Sample size: Data for this reference period were collected from a probability sample of approximately24,200 occupational observations selected from a sample of about 6,000 private industry establishmentsand approximately 7,700 occupational observations selected from a sample of about 1,400 state andlocal government establishments that provided data at the initial interview.Measures of reliability: Relative standard errors (RSEs) provide users a tool to ascertain the quality ofan estimate to ensure that it is within an acceptable range for their intended purpose. RSEs are availableat www.bls.gov/ncs/ect/ecec-rse.htm and database query tool at www.bls.gov/ncs/ect/data.htm.Comparisons: Compensation cost levels in state and local government should not be directly comparedwith levels in private industry. Differences between these sectors stem from factors such as variation inwork activities and occupational structures.Classification systems: The National Compensation Survey publishes estimates of compensation costsand trends as well as benefit coverage by ownership, industry group, occupational group, andgeographic areas. For more information on the classification systems used to identify ownerships,industry groups, occupational groups, and geographic areas, see fication-systems-mapping-files.htm.Additional information: Estimates that have been published on supplemental tables are now part of thenews release tables 4, 5, and 6. The 2021 ECEC release schedule is available at www.bls.gov/schedule/news release/ecec.htm. Subscribe to receive the BLS Economic News Release email at www.bls.gov/bls/list.htm.-3-

Table 1. Employer Costs for Employee Compensation by ownership[June 2021]Private industryworkersCivilian workers1Compensation componentTotal compensation2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Wages and salaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Total benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Paid leave. . . . . . . . . . . . . . . . . . . . . . . . . . . .Vacation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Holiday. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Sick. .Personal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Supplemental pay. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Overtime and premium3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Shift differentials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Nonproduction bonuses. .Insurance. .Life. .Health. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Short-term disability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Long-term disability. .Retirement and savings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Defined benefit. .Defined contribution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Legally Required benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Social Security and Medicare. . . . . . . . . . . . . . . . . . . . . . . . . . . . .Social Security4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Medicare. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Federal unemployment insurance. . . . . . . . . . . . . . . . . . . . . . . .State unemployment insurance. . . . . . . . . . . . . . . . . . . . . . . . . . .Workers’ compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .State and localgovernment workersCost ( )Percent ofcompensationCost ( )Percent ofcompensationCost ( )Percent 60.11.11Includes workers in the private nonfarm economy except those in private households, and workers in the public sector, except the federal government.Includes costs for wages and salaries and benefits.3Includes premium pay for work (such as overtime, weekends, and holidays) in addition to the regular work schedule.4Social Security refers to the Old-Age, Survivors, and Disability Insurance (OASDI) program.5Cost per hour worked is 0.01 or less.6Less than .05 percent.2-4-

Table 2. Employer Costs for Employee Compensation for civilian workers by occupational and industry group[June 2021]SeriesTotalcompensation1Wages andsalariesTotal benefitsPaid leaveSupplemental payInsuranceRetirement andsavingsLegally requiredbenefitsCost ( ) Percent Cost ( ) Percent Cost ( ) Percent Cost ( ) Percent Cost ( ) Percent Cost ( ) Percent Cost ( ) Percent Cost ( ) PercentCivilian workers2. . . . . . . . . . . . . . . . . . . . . . . . . . . .Occupational groupManagement, professional, andrelated. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Management, business andfinancial. .Professional and related. . . . . . . . . . . . . .Teachers3. . . . . . . . . . . . . . . . . . . . . . . . . . . .Primary, secondary, andspecial education schoolteachers. . . . . . . . . . . . . . . . . . . . . . . . .Registered nurses. .Sales and office. .Sales and related. . . . . . . . . . . . . . . . . . . . . .Office and administrative support. . . .Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Natural resources, construction, andmaintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . .Construction, extraction, farming,fishing, and forestry. . . . . . . . . . . . . . . . .Installation, maintenance, andrepair. .Production, transportation, andmaterial moving. . . . . . . . . . . . . . . . . . . . . . . .Production. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Transportation and materialmoving. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Industry groupEducation and health services. . . . . . . . . .Educational services. . . . . . . . . . . . . . . . . .Elementary and secondaryschools. .Junior colleges, colleges, anduniversities. . . . . . . . . . . . . . . . . . . . . . . .Health care and social assistance. . .Hospitals. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.623.336.16.25.164.0560.2229.08