Jobs: What Does It Cost to Add a Worker?
Talking about jobs is cheap, adding them is not.
Jan. 25, 2011 -- There is a cacophony of voices shouting about jobs – politicians, traders, economists, business leaders all yammering on about needing more and what it'll take to get unemployment down.
With all the rhetoric, not many Americans know what it takes to fund a new job. What does it really cost to add a worker to a company's payroll?
Well, here it is:
$40,630.20
(BASIC WAGE; the average weekly earnings for a private sector worker according to the Bureau of Labor Statistics is $781.35 x 52 weeks)
+
$17,064.68 (BENEFIT and TAX COST; the BLS says that for every $1 in wages, employer costs for taxes and benefits are $0.42 )
=$57,967.88
(TOTAL ANNUAL DIRECT COSTS to employers for the average worker)
And this number doesn't include the cost of rent, telephone/internet, computer, training, etc. for the average worker – it's just the direct costs of employing someone. Experts say these other costs can add thousand of dollars more per year, depending on the industry and job requirements.(continued on next page)
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