Labor Cost Benchmarking
by Industry

Compare labor cost benchmarks across U.S. industries by tracking payroll growth against industry output and identifying where workforce costs are becoming harder to absorb.

Current benchmark: Q1 2026 · Next full refresh: Sep 30, 2026Updated when BEA quarterly gross output is released and matched with the corresponding BLS payroll quarter.

About this labor cost benchmark

Labor cost benchmarking becomes more useful when payroll is read against the operating base available to support it. The Workforce Cost Absorption Benchmark compares year-over-year growth in nominal industry gross output with year-over-year growth in aggregate payroll across six major U.S. sectors.

The spread identifies where workforce costs are expanding faster than industry output and where output growth is absorbing payroll growth. The benchmark uses BEA gross output and BLS aggregate weekly payroll indexes across matched broad industries. For more information, visit our Labor Cost Optimization page.

Q1 2026 labor cost benchmark read

−7.6

percentage points in Construction

widest negative absorption spread

+5.0

percentage points in Information

strongest positive absorption spread

+0.2

percentage points in Manufacturing

closest sector to payroll-output balance

Labor Cost Benchmarking Over Time

Follow payroll growth against industry output over time to see where workforce costs are becoming harder or easier to absorb.

Current Labor Cost Pressure by Industry

Compare Q1 2026 labor cost pressure across industries by measuring whether payroll growth is above or below nominal industry output growth.

Payroll Growth vs. Industry Output

Separate payroll growth from industry output growth to see which side of the current labor cost benchmark is driving the spread.

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