“Cost of living” refers to the costs to a consumer in a specific geographic area. It reflects the price of food, housing, groceries, transportation, taxes and entertainment. Simply put, it’s the cost of maintaining a certain standard of living.
“Cost of labor” refers to the difference in pay or labor market for a job from one location to another. Another way to phrase this is that the cost of labor is what a particular geographic market offers as the “going rate” or compensation for its jobs.