Industries with the Highest Labor Costs in the US in 2020

1. Public Schools in the US

Labor Costs for 2020: $540.5B

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 operators' 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 1.6% over the five years to 2020. As such, industry revenue is estimated to increase at an annualized rate of 2.6% to $804.4 billion,... Learn More

2. Hospitals in the US

Labor Costs for 2020: $333.7B

Despite being a primary provider of healthcare in the United States, revenue for the Hospitals industry has declined over the five years to 2020, as hospitals across the United States have struggled with the COVID-19 (coronavirus) pandemic. As the coronavirus pandemic spread in early 2020, hospitals have been crucial in the treatment and control of the virus. However, due to the highly contagious nature of the virus, people have avoided hospitals for nonessential and nonemergency care. While hospitals have experienced an influx of patients with coronavirus, and are, in many cases, operating at capacity, high value patients are staying away.... Learn More

3. Colleges & Universities in the US

Labor Costs for 2020: $216.9B

The Colleges and Universities industry includes public and private nonprofit colleges and universities that offer academic courses and grant baccalaureate or graduate degrees. For most of the past five years, 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 has reversed since the COVID-19 (coronavirus) struck, bolstering industry demand. Moreover, growth in government funding and private donations have further supported the industry revenue during the same period. Overall, industry revenue is estimated to grow at an annualized rate of 4.5% to $578.4 billion over... Learn More

4. Commercial Banking in the US

Labor Costs for 2020: $210.6B

The Commercial Banking industry is composed of banks regulated by the Office of the Comptroller of the Currency, the Federal Reserve Board and the Federal Deposit Insurance Corporation (FDIC). Banks generate the majority of their revenue by accepting customer deposits and then lending these deposits out to individuals and businesses at a certain interest rate, which is influenced by different factors, including the federal funds rate, the prime rate and the debtor's creditworthiness.

Industry revenue finally returned to growth in 2015 after declining in each year since 2008. The Federal Reserve's gradual process of interest rate normalization between 2015 and 2018... Learn More

5. IT Consulting in the US

Labor Costs for 2020: $200.5B

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 2020, 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

6. Medical Group Practice Management

Labor Costs for 2020: $169.2B

Over the five years to 2020, revenue for the Medical Group Practice Management industry has expanded as more physicians have integrated into larger provider networks. Burdened by medical school debt and seeking regular hours, more young physicians are opting out of private practices and instead of joining hospitals or other medical groups. Joining larger practices, such as medical groups, offers several advantages, including increased negotiating power with insurance carriers, greater purchasing power and operating efficiencies. As a result, IBISWorld expects industry revenue to increase at an annualized rate of 1.5% to $354.0 billion over the five years to 2020, including... Learn More

7. Professional Employer Organizations in the US

Labor Costs for 2020: $157.9B

The Professional Employer Organizations industry comprises organizations that specialize in providing human resource management and administrative services through a coemployment relationship. Industry participants are responsible for all aspects of employee management, including hiring, payroll and benefits administration. These companies serve as the legal employers of their clients' employees, although the clients continue to manage their day-to-day operations. The industry has boded well during the first four years of the current period. However, during 2020, COVID-19 (coronavirus) caused disruption in the global financial markets leading to increased unemployment during 2020, leading to decreased demand for industry operators. Over the five years... Learn More

8. Specialist Doctors in the US

Labor Costs for 2020: $134.2B

Revenue for the Specialist Doctors industry is estimated to grow at an annualized rate of 0.3% to $264.3 billion over the five years to 2020. Overall, specialty practices have benefited from rising total health expenditure, increased demand from an aging population and improving access to healthcare insurance due to recent reforms. However, annualized growth is being pulled down by an expected 11.0% decline in revenue in 2020 due to the COVID-19 (coronavirus) pandemic. Industry operators have 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. Software Publishing in the US

Labor Costs for 2020: $127.9B

The Software Publishing industry comprises companies that design, develop and publish software. The industry encountered growth over the five years to 2020, as businesses and consumers increased their investment in software, computers and video games. Rising private investment in computers and software stimulated demand from businesses, while rising disposable income levels 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. Over the five years to 2020, industry revenue is estimated to rise at an annualized rate of 3.9% to $262.3 billion. In... Learn More

10. Scientific Research & Development in the US

Labor Costs for 2020: $113.5B

Operators in the Scientific Research and Development industry undertake physical, engineering or life sciences research and development. The primary purpose of all industry operators is research and development. Companies that undertake research and development to support their primary operations, such as pharmaceutical operators and government entities, are not included in this industry. Over the five years to 2020, revenue for the Scientific Research and Development industry has increased at an annualized rate of annualized rate of 5.7% to $185.3 billion over the five years to 2020. However, the COVID-19 (coronavirus) pandemic has is expected to negatively impact the industry's performance... Learn More