Meaning of the word "labor costs" in English

What does "labor costs" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

labor costs

US /ˈleɪbər kɔsts/
UK /ˈleɪbə kɒsts/
"labor costs" picture

Plural Noun

the cost of wages paid to workers, as well as benefits and payroll taxes

Example:
Reducing labor costs is a key strategy for many businesses.
The company moved its production overseas to lower its labor costs.