Comparing
Missouri's Cost of Labor
Several indicators can be used to determine the cost
of labor in a state, region, or country. Comparing Missouri to
border states, the state fares favorably with a large labor force
and high earnings for production workers.
With a labor force of over 3 million and total employment at 2.8
million, Missouri trailed only Illinois (6.6 million and 6.3
million) among border states in 2006.
The state ranked first among border states and ninth nationally for
earnings of production workers at $17.43 per hour. Leading states in
this indicator were Michigan ($21.50), Ohio ($19.07), and
Connecticut ($18.96).
Other indicators compared to border states are value
added per dollar of production worker (5th), percentage
of workers who are union members (3rd), and unemployment
rate (6th).
| Labor Cost Indicators by Border State | |||||||||
| LABOR CATEGORY | AR | IL | IA | KS | KY | MO | NE | OK | TN |
| Value added per dollar of production worker wages, 2003 | $5.19 | $5.63 | $6.36 | $5.12 | $5.21 | $5.32 | $5.16 | $5.34 | $5.52 |
| Percentage of wage & salary workers who are union members, 2006 | 5.10% | 16.40% | 11.30% | 8.00% | 9.80% | 10.90% | 7.90% | 6.40% | 6.00% |
| Average unemployment insurance tax rate on taxable wages, 2005 | 2.60% | 4.90% | 1.60% | 2.50% | 2.70% | 2.10% | 2.30% | 1.80% | 2.40% |
| Comparative workers compensation rate per $100 of payroll for manufacturing, 2007 | $2.37 | $4.51 | $3.39 | $3.46 | $4.41 | $4.69 | $3.94 | $4.53 | $4.58 |
| Right-to-work state | Yes | No | Yes | Yes | No | No | Yes | Yes | Yes |
| Average hourly earnings of production workers on manufacturing payrolls, 2005 | $13.71 | $15.84 | $16.25 | $17.14 | $16.64 | $17.43 | $15.44 | $14.65 | $14.03 |
| Civilian labor force, 2006 | 1,364,646 | 6,613,346 | 1,664,339 | 1,466,004 | 2,038,971 | 3,032,434 | 974,476 | 1,719,628 | 2,990,152 |
| Annual average total employment, 2006 | 1,292,886 | 6,315,715 | 1,602,849 | 1,400,169 | 1,922,163 | 2,885,857 | 945,270 | 1,650,877 | 2,835,530 |
| Annual average unemployment rate, 2006 | 5.30% | 4.50% | 3.70% | 4.50% | 5.70% | 4.80% | 3.00% | 4.00% | 5.20% |
| Total manufacturing employment, 2005 | 201,045 | 688,566 | 229,121 | 180,240 | 262,098 | 308,890 | 101,337 | 144,752 | 408,292 |
| Annual average manufacturing earnings/hour, 2006 | $16.45 | $24.23 | $20.71 | $21.20 | $21.17 | $21.11 | $17.58 | $18.97 | $20.60 |
| Unemployment insurance new employer Entry Rate, 2006 | 3.70% | 3.40% | 1.00% | 4.30% | 2.70% | 2.70% | 2.50% | 1.80% | 2.70% |
| Unemployment insurance minimum rate, 2006 | 0.10% | 0.30% | 0.00% | 0.10% | 0.50% | 0.00% | 0.40% | 0.20% | 0.30% |
| Unemployment insurance maximum rate, 2006 | 10.00% | 8.10% | 8.00% | 7.40% | 9.50% | 6.00% | 6.80% | 7.30% | 10.00% |
Sources:
Bureau of Labor Statistics, MERIC’s Business Climate Comparison
Tool, Nebraska Department of Economic Development
For
labor indicators and other economic indicators for all 50 states,
visit the Business Climate Comparison Tool on the MERIC website at:
http://www.missourieconomy.org/indicators/bcc/index.stm
