Michigan’s unit cost of labor has declined slightly over the last five years but remained higher than the “Top Ten” average in 2017. 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.

Why It Matters: The share of output that is paid to workers indicates the “value proposition” for employers. 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)