Michigan’s unit cost of labor has remained constant over the past three years and was approximately 10% higher than the “Top Ten” average in 2015. The unit cost of labor in Michigan was higher than all of its peer states except Massachusetts.

What It Is: Private industry compensation divided by private sector GDP (both in current dollars).

Why It Matters: The share of output that is paid to workers indicates the “value proposition” for employers of Michigan workers. Lower unit labor costs make a state a more attractive environment to operate.   

Unit Cost of Labor Trends

Unit Cost of Labor Standings

Source: Bureau of Economic Analysis (Real GDP by State, Compensation of Nonfarm Private Employees Table SA6N - Private Industries)