Michigan’s unit cost of labor has remained constant over the past three years and was approximately 10 percent higher than the “Top Ten” average in 2016. The unit cost of labor in Michigan was equal to or higher than all of its peer states except Massachusetts.

What It Is: Private industry compensation divided by private sector GDP.

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 in which to operate.

Note:  GDP is nominal for all private industries


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)