10 most and least expensive states to hire employees

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Despite recent waves of layoffs and increasing economic uncertainty, a majority of HR professionals expect their organizations to grow this year. But some states come with more mandatory hiring costs than others.

According to SHRM, while 80% of HR professionals are worried about how the economy will impact their organization, 74% said they expect to expand their workforce in 2023. HR solutions company Remote offers a look at which states are the most and least expensive to hire in, noting mandatory contributions employers are required to make to government programs like healthcare, retirement and unemployment upon adding a new hire.

"Fewer mandatory employment costs could potentially be a good thing for employers," says Anastasia Pshegodskaya, director of talent acquisition at Remote. "It can optimize their budgets, increase cost-efficiency and enable them to invest in other areas of their business, such as hiring more employees or expanding operations."

Read more: 15 companies with 4-day workweeks hiring remote workers

Still, employers have to keep an eye on their industry's market, and which states and cities demand higher income. Even if hiring growth slows down this year, the labor market remains competitive, with the unemployment rate hovering around 3.4% — a 50-year low. 

Here are the 10 most and least expensive states to hire employees, according to Remote.

Most expensive states to hire employees:

1. New Jersey

2. Hawaii

Mandatory employment costs: $6,119

3. Oregon

Mandatory employment costs: $6,082

4. Alaska

Mandatory employment costs: $5,701

5. Nevada

Mandatory employment costs: $5,651

Read more: 25 remote companies with the happiest employees

6. Washington

Mandatory employment costs: $5,589

7. California

Mandatory employment costs: $5,568

8. New York

Mandatory employment costs: $5,509

9. Wyoming

Mandatory employment costs: $5,402

Read more: How two organizations are coming to struggling tech workers' rescue

10. North Dakota

Mandatory employment costs: $5,339

Least expensive states to hire employees:

1. South Carolina

Mandatory employment costs: $4,648

2. Montana

Mandatory employment costs: $4,684

3. Nebraska

Mandatory employment costs: $4,684

Read more: The costly practice of pushing out employees to avoid layoffs

4. Mississippi

Mandatory employment costs: $4,711

5. Louisana

Mandatory employment costs: $4,725

6. Vermont

Mandatory employment costs: $4,726

7. South Dakota

Mandatory employment costs: $4,736

Read more: 10 jobs with the biggest salary increases in 2023

8. Tennessee

Mandatory employment costs: $4,760

9. Alabama

Mandatory employment costs: $4,787

10. Virginia

Mandatory employment costs: $4,790
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