Labor costs refer to the total amount of money spent on wages, salaries, benefits, and other expenses associated with an organization’s workforce. This includes the cost of employee wages and benefits such as health insurance, retirement plans, and paid time off. Labor costs may also include expenses associated with hiring and training new employees, as well as costs associated with maintaining and supporting existing employees. In general, labor costs are a significant expense for most businesses and can have a significant impact on overall profitability.
