Based on the expert analysis and our database of 1,300+ US industries, IBISWorld presents a list of the Industries with the Highest Labor Costs in the US in 2021
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View a list of the Top 25 industries with the highest labor costsLabor Costs for 2021: $218.9B
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 4.8% to $580.7 billion over... Learn More
Labor Costs for 2021: $168.6B
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. Overall, the industry has boded well during the current period. However, in 2020, the COVID-19 (coronavirus) pandemic caused disruption in the global financial markets leading to increased unemployment, resulting in decreased demand for industry operators, consequently causing industry revenue to decline 8.6% over... Learn More
Labor Costs for 2021: $156.3B
Operators in the Software Publishing industry design, develop and publish software. Industry revenue expanded rapidly over the five years to 2021, 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 7.8% to $396.7 billion over the five years to 2021. In 2020,... Learn More
Labor Costs for 2021: $76.6B
Over the five years to 2021, the Fast Food Restaurants industry has grappled with shifting consumer preferences and a saturated food service landscape that has kept prices low. The addition and popularity of fast-casual restaurants have also boded well for this industry as a whole, helping the industry maintain revenue growth before taking a hit in 2020. Nonetheless, intense internal and external competition has forced fast-food operators to emphasize low prices in a battle to attract consumers. This has been intensified by falling consumer sentiment, resulting from economic fallout following the COVID-19 (coronavirus) outbreak in 2020. Moreover, the mandatory shelter-in-place... Learn More
Labor Costs for 2021: $70.4B
Operators in the New Car Dealers industry sell new and used passenger vehicles, provide repair and maintenance services and offer financing and insurance options. The industry is highly cyclical in nature and vulnerable to economic shifts, such as fluctuations in employment, overall consumer spending and financing rates. Over the five years to 2021, industry revenue has trended slightly upward. Industry revenue is expected to increase an annualized 0.4% to $978.7 billion over the five years to 2021, including an increase of 4.9% in 2021 alone as consumer confidence is poised to improve. This slight increase in revenue throughout the period... Learn More
Labor Costs for 2021: $69.4B
The Single Location Full-Service Restaurants industry experienced revenue growth over the five years to 2021. For most of the past five years, the growing domestic economy and rising consumer spending led to consistent increases in consumers spending money on food away from home, increasing full-service restaurant spending. The fine-dining segment performed particularly well over the majority of the past five years due to solid growth in the income levels of affluent consumers. Conversely, restaurants at the lower end of the market struggled with low growth as consumers traded down to the innovative products served by a growing number of new... Learn More
Labor Costs for 2021: $59.0B
The Electricians industry includes operators that service, sell and install electrical equipment and perform electrical work at a site. Operators execute new electrical work, additions, alterations and maintenance and repairs. Over the five years to 2021, the industry has posted healthy revenue growth supported by new construction activity and an uptick in renovations. Industry operators generate a large share of revenue from electrical system installations in new residential and nonresidential structures, as well as from repair, retrofit and maintenance work. However, the economic downturn in 2020, due to the COVID-19 (coronavirus) pandemic, is anticipated to largely undo the positive gains... Learn More
Labor Costs for 2021: $57.8B
The Long-Distance Freight Trucking industry is engaged in the interstate transportation of palletized commodities by van trailer or container. Industry performance broadly follows the US economy, so increases in consumer spending, manufacturing output and trade volumes create high demand for industry services. However, revenue typically declines in line with lower fuel costs, as operators are dependent on fuel surcharge revenue. Lower fuel prices have negatively affected the industry in recent years, reducing surcharge revenue. Fortunately, fuel prices rose in 2017 and 2018, boosting fuel surcharges. Combined with positive external economic conditions that contributed to the industry's high base of demand,... Learn More
Labor Costs for 2021: $57.4B
The Real Estate Sales and Brokerage industry in the United States comprises brokers and agents that sell, buy or rent real estate for others. The industry is closely aligned with the health of the residential and commercial real estate markets in the United States. Industry revenue is directly correlated with property prices and real estate transaction volumes, and agents are typically paid completely on a commission basis, receiving a fee only when they close a deal. Additionally, the residential market accounts for more than two-thirds of industry revenue, making the industry sensitive to fluctuations in housing prices and existing home... Learn More
Labor Costs for 2021: $52.0B
Operators in the Operating Systems and Productivity Software Publishing industry develop and publish operating systems and productivity software products that are necessary for computer usability. Industry software often comes preinstalled on new computers and similar devices, so industry revenue correlates with new device sales. As technology has become more intertwined with daily life over the five years to 2021, industry demand has grown. Total revenue expanded as sales to both consumers and businesses increased during the period, driven by higher disposable income levels and extensive private investment in computers and software. Altogether, industry revenue increased at an annualized rate of... Learn More
Based on the expert analysis and our database of 1,300+ US industries, IBISWorld presents a list of the Least Risky Industries in the US in 2021
VIEW ARTICLEBased on the expert analysis and our database of 1,300+ US industries, IBISWorld presents a list of the Biggest Industries by Employment in the US in 2021
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