Industries with the Highest Labor Costs in the US in 2022

1. Portfolio Management in the US

Labor Costs for 2022: $129.4B

Portfolio Management industry operators manage asset portfolios for a fee or commission. Over the five years to 2022, the industry has experienced countervailing trends. For the majority of the period, rising assets under management (AUM) as a result of rising asset prices and growing disposable income have increased the base of assets industry operators charge fees on. However, increased investor preference for passive asset management, including through exchange-traded funds (ETFs), has driven expenses charged for the management of assets down during the period.

Financial markets play an integral role in AUM growth and, consequently, base and performance fees earned by managers.... Learn More

2. Law Firms in the US

Labor Costs for 2022: $125.5B

Operators in the Law Firms industry range from sole practitioners to large, full-service legal firms mostly serving corporate clients. Industry revenue growth has been modest over the five years to 2022. Although the industry benefited from economic growth through most of the period, it was negatively affected by the COVID-19 (coronavirus) pandemic in 2020. Overall, industry revenue is expected to increase at an annualized rate of 1.3% to $367.9 billion during the current period, including an increase of 1.9% in 2022 alone.

Greater demand for practices tied to high-growth sectors has boosted industry revenue over the past five years. Industry revenue... Learn More

3. Online Computer Software Sales

Labor Costs for 2022: $84.0B

Operators in the Online Computer Software Sales industry sell and distribute software for local installation and execution to customers via the internet. Companies in this industry may also handle digital rights management for that software. The broad array of available computer software programs used today enables a range of different retail channels to provide industry products to consumers and businesses alike. Industry sales include unique download and subscription software sales, in addition to the sale of industry software in combination with computer hardware or accessories. Industry revenue is expected to grow at an annualized rate of 4.6% to $587.6 billion... Learn More

4. Aircraft, Engine & Parts Manufacturing in the US

Labor Costs for 2022: $48.3B

The Aircraft, Engine and Parts Manufacturing industry develops and manufactures planes, rotorcraft, engines and related components for the civil and defense markets. After years of growth over the five years to 2022, the industry's revenue has recently experienced some turbulence, suppressing growth potential. The majority of this reversal was due to slowing defense spending, which reduced US demand for military aircraft and related components. Additionally, amid the COVID-19 (coronavirus) pandemic, industry revenue declined as demand for air travel drastically fell. Therefore, industry revenue is expected to decrease at an annualized rate of 3.6% to $211.4 billion over the five years... Learn More

5. Accounting Services in the US

Labor Costs for 2022: $46.1B

The Accounting Services industry has steadily accelerated over the five years to 2022, buoyed by economic growth early during the period and a continued demand for monetary advisory during the financial challenges of the early 2020s. As revenue has expanded, new operators have entered the industry and competition has intensified, especially between smaller companies. In an attempt to boost market share during the high growth early in the period, the industry's largest players acquired several smaller companies. Overall, industry revenue is estimated to rise at an annualized rate of 3.4% to $141.8 billion over the five years to 2022, including... Learn More

6. Retirement Communities in the US

Labor Costs for 2022: $34.3B

Broad changes in the country's demographics have driven the Retirement Communities industry's growth over the five years to 2022, as healthcare providers recognize the aging population's need for integrative eldercare. Retirement communities provide essential assisted living services to seniors suffering from chronic illnesses, while independent living facilities grant senior citizens with less medical needs their freedom of choice. Historically, the industry has been resistant to economic downturns. However, the disproportionate number of COVID-19 (coronavirus) deaths at industry facilities in 2020 resulted in steep demand declines. While long-term care facility residents became the first group eligible for vaccinations in December 2020,... Learn More

7. Plumbers in the US

Labor Costs for 2022: $32.9B

Operators in the Plumbers industry provides an essential service to the construction and renovation of nonresidential buildings, which is the industry's primary market. This market encompasses investments in office buildings, hospitals, factories, power plants, retail stores, schools and entertainments centers. The economic fallout related to the COVID-19 (coronavirus) pandemic in 2020 significantly reduced activity within this sector, as new construction projects were halted or postponed due to government mandated establishment closures. However, as the unemployment rate decreased in 2021 due to the widespread distribution of coronavirus vaccines and subsequent reopening of the economy, activity within this sector has rebounded. Recently... Learn More

8. Elderly & Disabled Services in the US

Labor Costs for 2022: $32.1B

Fueled by an aging population, demand for Elderly & Disabled services in the US has grown considerably over the five years to 2022. At the same time, growth in per capita disposable income, the expansion of Medicaid and private health insurance coverage have enabled more individuals and families to afford the cost of care. As a result, the industry has grown rapidly, with revenue estimated to increase an annualized 2.4% to $64.9 billion over the five years to 2022. Demand remained high despite the COVID-19 (coronavirus) pandemic due to the critical nature of services provided by industry operators. Meanwhile, as... Learn More

9. Pharmacies & Drug Stores in the US

Labor Costs for 2022: $31.8B

The Pharmacies and Drug Stores industry comprises operators that retail a range of prescription and over-the-counter (OTC) medications, health and beauty items, toiletries and consumable goods directly to consumers on a walk-in basis. Over the five years to 2022, the industry experienced revenue gains, as the number of people with private health insurance remained high, resulting in more prescription medications being filled. Moreover, the burgeoning elderly population boosted industry growth, as this consumer bracket generally requires medication to address chronic ailments, resulting in steady revenue streams. As a result, industry revenue is expected to increase an annualized 2.8% to $351.6... Learn More

10. Navigational Instrument Manufacturing in the US

Labor Costs for 2022: $31.7B

The Navigational Instrument Manufacturing industry produces a wide range of devices, including search, detection and navigational instruments, appliance regulators and controls, laboratory analytical instruments and physical properties testing equipment. The industry has a diverse clientele, including industries in air-traffic control, shipbuilding, construction, geophysical services and research. This variety of markets shields revenue from extreme fluctuations in downstream demand. Overall, industry revenue is expected to decrease marginally at an annualized rate of 0.2% to $124.8 billion over the five years to 2022, falling 1.7% in 2022 alone.

Economic growth during most of the period bolstered private investment and demand from the private... Learn More