Industries with the Highest Labor Costs in United States in 2025

• 1. Public Schools in the US

  Labor Costs for 2025: $649.9B

  Public schools have managed to maintain revenue growth despite significant shifts in funding, enrollment and parental preferences. Class sizes are shrinking every year as birth rates drop and the high school retention rate stagnates, straining revenue as smaller schools see lessened funding from governments. Public schools have contended with heightened competition from alternative education options, especially homeschooling and private institutions, as parents seek mor...

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• 2. Hospitals in the US

  Labor Costs for 2025: $506.9B

  Hospitals play a critical role in healthcare, offering specialized treatments and emergency services essential for public health, regardless of economic fluctuations or individuals' financial situations. Rising incomes and broader access to insurance have fueled demand for care in recent years, supporting hospitals' post-pandemic recovery initiated by federal policies and funding. The recovery for many hospitals was also promoted by mergers that lessened financial strains, especially in rural...

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• 3. IT Consulting in the US

  Labor Costs for 2025: $307.9B

  The breathtaking speed of technological advancement has driven the indispensability of the IT Consulting industry as the modern marketplace shifts toward cloud-based computing and data analytics. As businesses and consumers alike embrace digital technologies, technology consultants have been enlisted to develop the infrastructure underpinning the digital transformation. At the same time, cyber threats have intensified, necessitating resilience planning and swift responses to more sophisticate...

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• 4. Colleges & Universities in the US

  Labor Costs for 2025: $273.4B

  Endowment returns for many universities skyrocketed early in the current period, largely fueled by booming private equity and hedge fund activity. In 2021, private nonprofit universities saw a staggering 684.0% jump in investment returns. In contrast, public universities, which typically hold smaller endowments invested more in US equities and fixed-income assets, experienced more modest gains. Meanwhile, inflation and rising interest rates in 2022 reversed the boom for...

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• 5. Commercial Banking in the US

  Labor Costs for 2025: $268.8B

  Commercial Banks generate most of their revenue through loans to customers and businesses. Loans are set at interest rates that are influenced by different factors, including the federal funds rate (FFR), the prime rate, debtors' creditworthiness and overall macroeconomic performance. The Commercial Banking industry’s performance was mixed during the current period, which included both the postpandemic recovery and a strong economy amid high interest rates. At the onset of the period, volatil...

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• 6. Specialist Doctors in the US

  Labor Costs for 2025: $226.0B

  Specialist doctors' diverse payment streams, including government and private insurance programs and out-of-pocket patient payments, help reduce revenue volatility. The increasing size of the older adult demographic, supported by favorable government policies and a resilient post-pandemic economic climate, has contributed to growth. However, specialist doctors have faced increasing competition from telemedicine and larger enterprises that have impacted smaller practices already stressed by th...

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• 7. Software Publishing in the US

  Labor Costs for 2025: $213.5B

  Software publishing companies such as Microsoft and Oracle have become some of the world's most influential entities, primarily because of their omnipresence in the devices people use on an hourly basis. Over the past 20 years, industry revenue has more than tripled, untouched by the Great Recession and boosted by the pandemic. During the current period, the industry has continuously introduced new solutions and has enhanced existing products, leading to revenue climbing at a CAGR of 4.9% to ...

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• 8. Portfolio Management & Investment Advice in the US

  Labor Costs for 2025: $201.4B

  In the last five years, the industry has experienced countervailing trends. For most of the period, rising assets under management (AUM) due to rising asset prices and growing disposable income have increased the base of assets industry operators charge fees on. Increased investor preference for passive asset management, including through exchange-traded funds (ETFs), has driven expenses charged for the management of assets down during the period.

  Financial markets play an integral rol...

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• 9. Commercial Real Estate in the US

  Labor Costs for 2025: $200.8B

  The Commercial Real Estate (CRE) industry is exhibiting significant variations across markets, with persistently high office vacancy rates juxtaposed against thriving prime office spaces. Hard hit by the widespread adoption of remote and hybrid work models, the overall office vacancy rate rose to 20.4% in Q4 2024 from the pre-pandemic rate of 16.8%. However, leasing volumes for prime office spaces are set to climb, providing opportunities for seasoned investors. On the other hand, the multifa...

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• 10. Management Consulting in the US

  Labor Costs for 2025: $197.4B

  Management consultants continue to benefit from a robust demand stream for strategic planning and marketing services across the business and individual markets. Providing varied services to diverse downstream markets with unique needs allows management consultants to weather changing economic conditions. Core business interests, such as strategic planning, came into extra demand when inflationary spikes in 2022 and subsequent interest rate increases in 2023 accelerated the costs of business. ...

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