Industries with the Highest Labor Costs in the US in 2021

1. Public Schools in the US

Labor Costs for 2021: $545.8B

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 1.7% over the five years to 2021. As such, industry revenue is estimated to increase at an annualized rate of 1.3% to $791.1 billion... Learn More

2. Hospitals in the US

Labor Costs for 2021: $347.4B

Despite being a primary provider of healthcare in the United States, revenue for the Hospitals industry has declined over the five years to 2021, as hospitals across the United States have struggled with the COVID-19 (coronavirus) pandemic. As the coronavirus pandemic spread in early 2020, hospitals were 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 have, in many cases, operated at capacity, high value patients have stayed away. Elective... Learn More

3. IT Consulting in the US

Labor Costs for 2021: $226.4B

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 2021, 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. Colleges & Universities in the US

Labor 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

5. Commercial Banking in the US

Labor Costs for 2021: $198.2B

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 most 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 (FFR), the prime rate and the debtor's creditworthiness.

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

6. Professional Employer Organizations in the US

Labor Costs for 2021: $168.6B

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. 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 performed well over the five years to 2021. However, the outbreak of the COVID-19 (coronavirus) pandemic in 2020 caused disruptions in the global financial markets, leading to increased unemployment. As a result, industry operators experienced lower demand for their... Learn More

7. Software Publishing in the US

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 8.5% to $411.1 billion over the past five years. Moreover, in 2020,... Learn More

8. Specialist Doctors in the US

Labor Costs for 2021: $146.1B

Revenue for the Specialist Doctors industry is estimated to grow at an annualized rate of 0.5% to $283.3 billion over the five years to 2021. 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 estimated 11.6% 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. Law Firms in the US

Labor Costs for 2021: $119.5B

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 2021. 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 has increased at an annualized rate of 1.2% to $329.7 billion during the current period, including an increase of 5.3% in 2021 alone.

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

10. Office Staffing & Temp Agencies in the US

Labor Costs for 2021: $117.0B

Over the five years to 2021, the Office Staffing and Temp Agencies industry has recorded growth due to a growing US labor market and overall economic improvements. However, the COVID-19 (coronavirus) pandemic has created unfavorable economic conditions. This 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.

During the current five-year period, prior to... Learn More