Worcester-Boston worker compensation costs up 3.6%, slightly above national rate

Compensation costs for private industry workers climbed 3.6% in the Boston-Worcester-Providence area in 2025, growth that was slightly larger than the national increase of 3.4%.

The 3.6% increase compares to the 2.6% increase seen in 2024, according to data released by the Bureau of Labor Statistics on Tuesday. Wages and salaries accounted for most of the 2025 increase, as they climbed 3.6% during 2025.

Increases in wages and salaries should help workers dealing with increasing costs of living; the BLS New England Consumer Price Index climbed 2.5% in 2025. 

The 3.6% increase in compensation costs locally was the fourth highest of any metro area measured by BLS, with Minneapolis, Miami, and Chicago seeing higher growth rates. 

The Boston-Worcester-Providence CSA covers Barnstable, Bristol, Essex, Middlesex, Norfolk, Plymouth, Suffolk, and Worcester counties, as well as all of Rhode Island and the southern part of New Hampshire.

Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the real estate and banking & finance industries.