What is the cost of Labor?

The cost of labor is the sum of all wages paid to employees, as well as the cost of employee benefits and payroll taxes paid by an employer. The cost of labor is broken into direct and indirect ( overhead) costs.

What are direct labor costs?

Direct labor costs refer to costs that are derived directly from supply chain employees involved in the production. This group could include assemblers, manufacturers, heavy machinery users, fabricators, craftsmen and artisans, delivery drivers and other logistical employees essential for getting goods into consumers’ hands.

What is labor cost data?

Labor cost data from the International Labour Organization (ILO) provide an estimate of employers’ expenditure toward the employment of their workforce, and reflect wages paid to employees, the cost of employee benefits, and payroll taxes paid by an employer.