Industries with the Highest Labor Costs in the US in 2022

1. Public Schools in the US

Labor Costs for 2022: $602.3B

The Public Schools industry includes traditional elementary (kindergarten through fifth grade), middle (sixth or seventh through eighth grade) and high schools (ninth through 12th grade), as well as both charter and magnet schools. Due to school districts' reliance on state and local government funding, industry revenue is directly affected by changes in tax revenue, which are affected by overall economic health. Government funding for primary and secondary education is estimated to grow at an annualized rate of 2.1% over the five years to 2022. Consequently, industry revenue is estimated to increase at an annualized rate of 1.6% to $866.8 billion... Learn More

2. Hospitals in the US

Labor Costs for 2022: $430.1B

Hospitals play a central role in the healthcare sector and have a critical impact on the wellbeing of the US population. Thus, the Hospitals industry is one of the largest industries in the economy, responsible for nearly 5.8% of US gross domestic product (GDP). Over the five years to 2022, industry revenue has increased, supported by rising health expenditure and growing insurance coverage over the majority of the period. However, the industry was significantly strained by the COVID-19 (coronavirus) pandemic, as hospitals balanced an influx of patients requiring resource-intensive care, staffing shortages and rising costs. Simultaneously, revenue derived from nonelective... Learn More

3. IT Consulting in the US

Labor Costs for 2022: $278.5B

The IT Consulting industry comprises companies that help businesses design and implement information technology (IT) systems and infrastructure. Due to the low capital requirements of this industry, a modest number of operators are small nonemployers or independent contractors. Over the five years to 2022, shifting technological trends toward cloud computing and data analytics have caused larger operators to acquire smaller companies and develop new products to stay relevant. For example, Accenture PLC (Accenture) completed its acquisition of Orbium, a technology consultancy for financial services providers, in February 2019. Similarly, International Business Machines Corp. (IBM) completed its largest acquisition in company... Learn More

4. Commercial Banking in the US

Labor Costs for 2022: $257.2B

The Commercial Banking industry is composed of banks regulated by the Office of the Comptroller of the Currency, the Federal Reserve Board of Governors (Fed) and the Federal Deposit Insurance Corporation (FDIC). Banks generate most of their revenue through loans they originate to customers and businesses. Loans are made at various interest rates that are influenced by different factors, including the federal funds rate (FFR), the prime rate, debtors' creditworthiness and macroeconomic performance.

Over the five years to 2022, the industry has experienced mixed performance. Industry operators benefited between 2017 and 2019 due to interest rate hikes by the Fed and... Learn More

5. Professional Employer Organizations in the US

Labor Costs for 2022: $242.1B

The Professional Employer Organizations industry comprises organizations that specialize in providing human resource (HR) management and administrative services through a co-employment relationship. Industry participants are responsible for all aspects of employee management, including hiring, payroll and benefits administration. Over the five years to 2022, industry revenue has increased at an annualized rate of 7.0% to $283.6 billion, including an expected increase of 8.5% in 2022 alone. Strong growth in industry revenue is largely explained by a growing interest in PEO services. During the past five years, more businesses have used PEO services to reduce internal HR costs. Meanwhile, industry operators... Learn More

6. Colleges & Universities in the US

Labor Costs for 2022: $226.5B

The Colleges and Universities industry includes public and private nonprofit colleges and universities that offer academic courses and grant baccalaureate or graduate degrees. Over the five years to 2022, strengthened job markets and better employment prospects hindered industry demand, causing high school graduates to enter the workforce and forgo postsecondary education. However, this trend reversed as the COVID-19 (coronavirus) struck, bolstering industry demand. Nonetheless, the shift to fully remote learning amid the pandemic somewhat hinders demand for colleges and universities, especially among private universities. This caused enrollment at private non-profit universities to decline in 2020 and this trend has continued... Learn More

7. Software Publishing in the US

Labor Costs for 2022: $182.3B

Operators in the Software Publishing industry design, develop and publish software. Industry revenue expanded rapidly over the five years to 2022, as businesses and consumers increased their investment in software, computers, smartphones and video games. Rising private investment in computers and software stimulated demand from businesses, while higher consumer spending encouraged consumers to spend on software as well. Moreover, new internet-based solutions and the increasing popularity of mobile devices have triggered an explosion of mobile software applications. Industry revenue is estimated to rise at an annualized rate of 7.1% to $442.5 billion over the past five years. Moreover, in 2020,... Learn More

8. Specialist Doctors in the US

Labor Costs for 2022: $169.2B

Revenue for the Specialist Doctors industry is estimated to grow at an annualized rate of 1.5% to $324.9 billion over the five years to 2022. Overall, specialty practices have benefited from rising total health expenditure, increased demand from an aging population and improving access to health insurance due to recent reforms. However, annualized growth is being pulled down slightly by an estimated 1.5% decline in revenue in 2020 due to the COVID-19 (coronavirus) pandemic. Industry operators had to cancel or delay elective procedures, which tend to account for the bulk of revenue. Due to the specialized nature of industry services,... Learn More

9. Office Staffing & Temp Agencies in the US

Labor Costs for 2022: $147.2B

Over the five years to 2022, the Office Staffing and Temp Agencies industry has recorded growth due to a growing US labor market. However, the COVID-19 (coronavirus) pandemic has created unfavorable economic conditions which has caused the industry and labor market to significantly decline over 2020. Industry operators supply businesses with workers for predetermined periods of time to supplement their existing staff. Operators in the industry are considered legal employers of temp workers since they are responsible for payroll, although they do not directly supervise the employees at work sites.

In the current five-year period, prior to the coronavirus pandemic, unemployment... Learn More

10. Management Consulting in the US

Labor Costs for 2022: $145.4B

The Management Consulting industry has experienced unusual turbulence over the five years to 2022. Prior to 2020, overall economic growth and continued merger and acquisition (M&A) activity in the corporate sector drove demand for consulting services from industry operators. However, in 2020, the COVID-19 (coronavirus) pandemic caused a recession slowing demand for industry services. Nonetheless, a marked recovery of the economy in 2021 led to an estimated 14.2% increase in industry revenue. Industry revenue is expected to continue to increase in 2022 with strong growth in corporate profit and aggregate private investment. As a result, industry revenue has grown over... Learn More