Technical information: (202) 691-6378 USDL 06-696 http://www.bls.gov/cps/ For release: 10:00 A.M. EDT Media contact: 691-5902 Thursday, April 20, 2006 USUAL WEEKLY EARNINGS OF WAGE AND SALARY WORKERS: FIRST QUARTER 2006 Median weekly earnings of the nation's 103.5 million full-time wage and salary workers were $668 in the first quarter of 2006, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This was 2.3 percent higher than a year earlier, compared with a gain of 3.6 percent in the Consumer Price Index for All Urban Consumers (CPI-U) over the same period. Data on usual earnings are collected as part of the Current Population Survey, a nationwide sample survey of households in which respondents are asked, among other things, how much each wage and salary worker usually earns. (See the Explanatory Note.) Highlights from the first-quarter data are: --Women who usually worked full time had median earnings of $600 per week, or 80.6 percent of the $744 median for men. The female-to-male earnings ratios were higher among blacks (93.9 percent) and Hispanics or Latinos (86.6 percent) than among whites (79.6 percent) or Asians (71.1 percent). (See table 1.) --Median earnings for black men working at full-time jobs were $577 per week, 75.6 percent of the median for white men ($763). The difference was less among women, as black women's median earnings ($542) were 89.3 percent of those for their white counterparts ($607). Overall, median earnings of Hispanics or Latinos who worked full time ($487) were lower than those of blacks ($560), whites ($688), and Asians ($766). (See table 1.) --Among men, those 55 to 64 years old had the highest median weekly earnings ($910). Among women, earnings were highest for those age 45 to 54 ($663). (See table 2.) --Among the major occupational groups, persons employed full time in managerial, professional, and related occupations had the highest median weekly earnings--$1,160 for men and $816 for women. Men and women in ser- vice jobs earned the least. (See table 3.) --Full-time workers age 25 and over without a high school diploma had median weekly earnings of $420, compared with $592 for high school graduates (no college) and $1,019 for college graduates holding at least a bachelor's degree. Among college graduates with advanced degrees (professional or mas- ter's degree and above), the highest-earning 10 percent of male workers made $2,899 or more per week, compared with $1,904 or more for their female coun- terparts. (See table 4.) - 2 - Explanatory Note The estimates in this release were obtained from the Current Population Survey (CPS), which provides the basic information on the labor force, employment, and unemployment. The survey is conducted monthly for the Bureau of Labor Statistics by the U.S. Census Bureau from a scienti- fically selected national sample of about 60,000 households, with coverage in all 50 states and the District of Columbia. The earnings data are collected from one-quarter of the CPS monthly sample and are limited to wages and salaries. The data, therefore, exclude self-employment income. Information in this release will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200; TDD message referral phone number: 1-800-877-8339. Reliability Statistics based on the CPS are subject to both sampling and nonsam- pling error. When a sample, rather than the entire population, is surveyed, there is a chance that the sample estimates may differ from the "true" population values they represent. The exact difference, or sampling error, varies depending on the particular sample selected, and this variability is measured by the standard error of the estimate. There is about a 90-percent chance, or level of confidence, that an estimate based on a sample will differ by no more than 1.6 standard errors from the "true" population value because of sampling error. BLS analyses are generally conducted at the 90-percent level of confidence. The CPS data also are affected by nonsampling error. Nonsampling error can occur for many reasons, including the failure to sample a segment of the population, inability to obtain information for all respondents in the sample, inability or unwillingness of respondents to provide correct information, and errors made in the collection or processing of the data. For a full discussion of the reliability of data from the CPS and information on estimating standard errors, see the "Explanatory Notes and Estimates of Error" section of Employment and Earnings. Definitions The principal definitions used in connection with the earnings series are described briefly below. Usual weekly earnings. Data represent earnings before taxes and other deductions and include any overtime pay, commissions, or tips usually received (at the main job in the case of multiple jobholders.) Prior to 1994, respondents were asked how much they usually earned per week. Since January 1994, respondents have been asked to identify the easiest way for them to report earnings (hourly, weekly, biweekly, twice monthly, monthly, annually, other) and how much they usually earn in the reported time period. Earnings reported on a basis other than weekly are converted to a weekly equivalent. The term "usual" is as perceived by the respondent. If the respondent asks for a definition of usual, interviewers are instructed to define the term as more than half the weeks worked during the past 4 or 5 months. - 3 - Medians (and other quantiles) of weekly earnings. The median (or upper limit of the second quartile) is the amount which divides a given earnings distribution into two equal groups, one having earnings above the median and the other having earnings below the median. Ten percent of a given distribution have earnings below the upper limit of the first decile (90 percent have higher earnings); 25 percent have earnings below the upper limit of the first quartile (75 percent have higher earnings); 75 percent have earnings below the upper limit of the third quartile (25 percent have higher earnings); and 90 percent have earnings below the upper limit of the ninth decile (10 percent have higher earnings). The estimating procedure places each reported or calculated weekly earnings value into $50-wide intervals which are centered around multiples of $50. The actual value is estimated through the linear interpolation of the interval in which the quantile boundary lies. Over-the-year changes in the medians (and other quantile boundaries) for specific groups may not necessarily be consistent with the movements estimated for the overall quantile boundary. The most common reasons for this possible anomaly are: (1) There could be a change in the relative weights of the subgroups. For example, the medians of both 16-to-24 year olds and those 25 years and over may rise; but if the lower-earning 16-to- 24 group accounts for a greatly increased share of the total, the overall median could actually fall. (2) There could be a large change in the shape of the distribution of reported earnings, particularly near a quantile boundary. This could be caused by survey observations that are clustered at rounded values, e.g., $250, $300, $400. An estimate lying in a $50-wide centered interval containing such a cluster or "spike" tends to change more slowly than one in other intervals. Wage and salary workers. Workers who receive wages, salaries, commissions, tips, payment in kind, or piece rates. The group includes employees in both the private and public sectors but, for the purposes of the earnings series, excludes all self-employed persons, regardless of whether or not their businesses are incorporated. Full-time workers. Workers who usually work 35 hours or more per week at their sole or principal job. Part-time workers. Workers who usually work fewer than 35 hours per week at their sole or principal job. Constant dollars. The Consumer Price Index for All Urban Consumers (CPI-U) is used to convert current dollars to constant (1982) dollars. Hispanic or Latino ethnicity. Refers to persons who identified them- selves in the enumeration process as being Spanish, Hispanic, or Latino. Persons whose ethnicity is identified as Hispanic or Latino may be of any race and, therefore, are classified by ethnicity as well as by race. Table 1. Median usual weekly earnings of full-time wage and salary workers by selected characteristics, quarterly averages, not seasonally adjusted Number of workers Median weekly earnings (in thousands) Characteristic In current dollars In constant (1982) dollars I I 2005 2006 I I I I 2005 2006 2005 2006 SEX AND AGE Total, 16 years and over.................................. 100,884 103,469 $653 $668 $328 $324 Men, 16 years and over................................. 56,719 57,950 729 744 367 361 16 to 24 years....................................... 5,904 5,886 401 417 201 202 25 years and over.................................... 50,815 52,065 775 793 390 385 Women, 16 years and over............................... 44,165 45,519 586 600 295 291 16 to 24 years....................................... 4,331 4,492 380 388 191 188 25 years and over.................................... 39,834 41,027 610 624 307 303 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White.................................................. 82,155 83,710 677 688 340 334 Men.................................................. 47,364 48,039 751 763 378 370 Women................................................ 34,790 35,670 599 607 301 295 Black or African American.............................. 12,023 12,536 513 560 258 272 Men.................................................. 5,722 5,920 555 577 279 280 Women................................................ 6,301 6,616 492 542 247 263 Asian.................................................. 4,425 4,849 738 766 371 371 Men.................................................. 2,403 2,695 798 932 401 452 Women................................................ 2,022 2,154 670 663 337 322 Hispanic or Latino ethnicity........................... 14,040 15,285 470 487 236 237 Men.................................................. 9,021 9,701 488 506 245 246 Women................................................ 5,019 5,584 433 438 218 213 NOTE: Estimates for the above race groups (white, black or African American, and Asian) do not sum to totals because data are not presented for all races. In addition, persons whose ethnicity is identified as Hispanic or Latino may be of any race and, therefore, are classified by ethnicity as well as by race. Beginning in January 2006, data reflect revised population controls used in the household survey. Table 2. Median usual weekly earnings of full-time wage and salary workers by age, race, Hispanic or Latino ethnicity, and sex, first quarter 2006 averages, not seasonally adjusted Total Men Women Age, race, and Hispanic or Latino ethnicity Number Number Number of Median of Median of Median workers weekly workers weekly workers weekly (in earnings (in earnings (in earnings thousands) thousands) thousands) TOTAL 16 years and over......................................... 103,469 $668 57,950 $744 45,519 $600 16 to 24 years.......................................... 10,377 405 5,886 417 4,492 388 16 to 19 years........................................ 1,382 322 815 358 567 293 20 to 24 years........................................ 8,995 417 5,070 428 3,925 404 25 years and over....................................... 93,092 712 52,065 793 41,027 624 25 to 54 years........................................ 77,717 705 43,774 778 33,943 623 25 to 34 years...................................... 24,808 617 14,370 656 10,438 578 35 to 44 years...................................... 26,884 748 15,459 839 11,424 646 45 to 54 years...................................... 26,026 763 13,945 888 12,081 663 55 years and over..................................... 15,374 744 8,290 880 7,084 628 55 to 64 years...................................... 13,272 763 7,049 910 6,223 648 65 years and over................................... 2,103 596 1,241 707 861 488 White 16 years and over......................................... 83,710 688 48,039 763 35,670 607 16 to 24 years.......................................... 8,450 410 4,849 424 3,601 390 25 years and over....................................... 75,260 732 43,190 818 32,070 636 25 to 54 years........................................ 62,217 726 36,025 800 26,192 637 55 years and over..................................... 13,043 761 7,165 903 5,878 629 Black or African American 16 years and over......................................... 12,536 560 5,920 577 6,616 542 16 to 24 years.......................................... 1,244 364 652 356 592 375 25 years and over....................................... 11,292 588 5,268 616 6,024 571 25 to 54 years........................................ 9,853 584 4,602 617 5,251 560 55 years and over..................................... 1,439 614 666 614 773 613 Asian 16 years and over......................................... 4,849 766 2,695 932 2,154 663 16 to 24 years.......................................... 358 425 208 431 150 412 25 years and over....................................... 4,491 815 2,487 978 2,004 680 25 to 54 years........................................ 3,830 830 2,128 1,017 1,702 673 55 years and over..................................... 661 727 359 775 302 710 Hispanic or Latino ethnicity 16 years and over......................................... 15,285 $487 9,701 $506 5,584 $438 16 to 24 years.......................................... 2,152 373 1,367 379 785 364 25 years and over....................................... 13,133 508 8,334 535 4,799 465 25 to 54 years........................................ 11,841 509 7,543 533 4,298 467 55 years and over..................................... 1,292 508 791 552 501 435 NOTE: Estimates for the above race groups (white, black or African American, and Asian) do not sum to totals because data are not presented for all races. In addition, persons whose ethnicity is identified as Hispanic or Latino may be of any race and, therefore, are classified by ethnicity as well as by race. Beginning in January 2006, data reflect revised population controls used in the household survey. Table 3. Median usual weekly earnings of full-time wage and salary workers by occupation and sex, quarterly averages, not seasonally adjusted Number of workers Median weekly earnings (in thousands) Occupation and sex I I I I 2005 2006 2005 2006 TOTAL Management, professional, and related occupations.............. 36,935 37,912 $937 $954 Management, business, and financial operations occupations... 15,034 15,591 1,016 1,029 Professional and related occupations......................... 21,901 22,321 895 911 Service occupations............................................ 13,467 13,981 416 419 Sales and office occupations................................... 24,142 25,048 570 588 Sales and related occupations................................ 9,304 10,005 623 635 Office and administrative support occupations................ 14,838 15,043 543 565 Natural resources, construction, and maintenance occupations... 11,218 11,739 634 650 Farming, fishing, and forestry occupations................... 690 611 370 405 Construction and extraction occupations...................... 6,164 6,813 615 618 Installation, maintenance, and repair occupations............ 4,365 4,315 712 746 Production, transportation, and material moving occupations.... 15,122 14,790 543 552 Production occupations....................................... 8,475 8,252 539 545 Transportation and material moving occupations............... 6,646 6,538 550 562 Men Management, professional, and related occupations.............. 18,403 18,683 1,127 1,160 Management, business, and financial operations occupations... 8,086 8,591 1,234 1,242 Professional and related occupations......................... 10,317 10,092 1,048 1,119 Service occupations............................................ 6,846 6,963 477 500 Sales and office occupations................................... 8,865 9,379 691 696 Sales and related occupations................................ 5,140 5,631 772 758 Office and administrative support occupations................ 3,726 3,748 598 620 Natural resources, construction, and maintenance occupations... 10,745 11,287 639 656 Farming, fishing, and forestry occupations................... 562 515 387 422 Construction and extraction occupations...................... 6,028 6,641 616 618 Installation, maintenance, and repair occupations............ 4,155 4,131 713 750 Production, transportation, and material moving occupations.... 11,860 11,639 592 591 Production occupations....................................... 6,046 5,904 606 601 Transportation and material moving occupations............... 5,814 5,735 579 580 Women Management, professional, and related occupations.............. 18,532 19,229 804 816 Management, business, and financial operations occupations... 6,948 7,000 838 851 Professional and related occupations......................... 11,584 12,229 784 795 Service occupations............................................ 6,620 7,019 381 382 Sales and office occupations................................... 15,277 15,669 519 532 Sales and related occupations................................ 4,164 4,373 487 492 Office and administrative support occupations................ 11,113 11,296 527 546 Natural resources, construction, and maintenance occupations... 473 452 505 514 Farming, fishing, and forestry occupations................... 128 96 326 (1) Construction and extraction occupations...................... 136 172 592 588 Installation, maintenance, and repair occupations............ 210 184 680 653 Production, transportation, and material moving occupations.... 3,262 3,151 432 426 Production occupations....................................... 2,430 2,348 433 423 Transportation and material moving occupations............... 832 803 429 436 1 Data not shown where base is less than 100,000. NOTE: Beginning in January 2006, data reflect revised population controls used in the household survey. Table 4. Quartiles and selected deciles of usual weekly earnings of full-time wage and salary workers by selected characteristics, first quarter 2006 averages, not seasonally adjusted Number Upper limit of: of Characteristic workers (in First First Second Third Ninth thousands) decile quartile quartile quartile decile (median) SEX, RACE, AND HISPANIC OR LATINO ETHNICITY Total, 16 years and over.................................. 103,469 $318 $445 $668 $1,030 $1,535 Men..................................................... 57,950 342 488 744 1,164 1,744 Women................................................... 45,519 299 405 600 877 1,262 White................................................... 83,710 325 460 688 1,056 1,560 Men................................................... 48,039 355 501 763 1,186 1,770 Women................................................. 35,670 301 409 607 890 1,266 Black or African American............................... 12,536 289 384 560 823 1,198 Men................................................... 5,920 290 389 577 887 1,249 Women................................................. 6,616 288 380 542 775 1,135 Asian................................................... 4,849 340 492 766 1,290 1,877 Men................................................... 2,695 360 533 932 1,451 1,999 Women................................................. 2,154 325 458 663 1,037 1,479 Hispanic or Latino ethnicity............................ 15,285 278 351 487 713 1,108 Men................................................... 9,701 290 374 506 749 1,175 Women................................................. 5,584 254 319 438 659 958 EDUCATIONAL ATTAINMENT Total, 25 years and over................................ 93,092 341 483 712 1,084 1,577 Less than a high school diploma....................... 8,661 259 318 420 580 804 High school graduates, no college(1).................. 27,725 314 416 592 838 1,159 Some college or associate degree...................... 25,492 365 492 691 988 1,375 Bachelor's degree and higher (2)...................... 31,214 510 705 1,019 1,532 2,171 Bachelor's degree only.............................. 20,349 477 648 933 1,394 1,924 Advanced degree..................................... 10,865 620 846 1,215 1,772 2,505 Men, 25 years and over................................ 52,065 375 523 793 1,224 1,826 Less than a high school diploma..................... 5,859 286 356 473 623 902 High school graduates, no college(1)................ 16,130 349 482 672 949 1,258 Some college or associate degree.................... 13,367 405 561 792 1,139 1,514 Bachelor's degree and higher (2).................... 16,708 569 793 1,223 1,823 2,497 Bachelor's degree only............................ 10,693 518 729 1,112 1,619 2,292 Advanced degree................................... 6,015 700 978 1,453 2,009 2,899 Women, 25 years and over.............................. 41,027 314 426 624 913 1,320 Less than a high school diploma..................... 2,801 229 279 352 472 598 High school graduates, no college(1)................ 11,595 287 372 498 674 925 Some college or associate degree.................... 12,125 332 435 603 832 1,117 Bachelor's degree and higher (2).................... 14,506 477 637 868 1,236 1,675 Bachelor's degree only............................ 9,657 434 604 797 1,141 1,557 Advanced degree................................... 4,849 580 756 987 1,401 1,904 1 Includes persons with a high school diploma or equivalent. 2 Includes persons with bachelor's, master's, professional, and doctoral degrees. NOTE: Ten percent of all full-time wage and salary workers earn less than the upper limit of the first decile; 25 percent earn less than the upper limit of the first quartile; 50 percent earn less than the upper limit of the second quartile, or median; 75 percent earn less than the upper limit of the third quartile; and 90 percent earn less than the upper limit of the ninth decile. Estimates for the above race groups (white, black or African American, and Asian) do not sum to totals because data are not presented for all races. In addition, persons whose ethnicity is identified as Hispanic or Latino may be of any race and, therefore, are classified by ethnicity as well as by race. Beginning in January 2006, data reflect revised population controls used in the household survey. Table 5. Median usual weekly earnings of part-time wage and salary workers by selected characteristics, quarterly averages, not seasonally adjusted Number of workers Median weekly earnings (in thousands) Characteristic I I I I 2005 2006 2005 2006 SEX AND AGE Total, 16 years and over.................................. 22,398 22,375 $197 $200 Men, 16 years and over................................. 6,951 7,241 188 188 16 to 24 years....................................... 3,404 3,731 146 147 25 years and over.................................... 3,547 3,509 248 253 Women, 16 years and over............................... 15,447 15,134 201 208 16 to 24 years....................................... 4,707 4,572 138 136 25 years and over.................................... 10,740 10,562 242 250 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White.................................................. 19,040 19,044 197 204 Men.................................................. 5,851 6,099 188 191 Women................................................ 13,190 12,944 202 211 Black or African American.............................. 1,948 2,032 186 173 Men.................................................. 609 692 188 170 Women................................................ 1,340 1,340 184 175 Asian.................................................. 815 783 220 219 Men.................................................. 276 248 211 205 Women................................................ 539 535 223 225 Hispanic or Latino ethnicity........................... 2,497 2,590 193 197 Men.................................................. 953 1,042 200 195 Women................................................ 1,544 1,548 188 198 NOTE: Estimates for the above race groups (white, black or African American, and Asian) do not sum to totals because data are not presented for all races. In addition, persons whose ethnicity is identified as Hispanic or Latino may be of any race and, therefore, are classified by ethnicity as well as by race. Beginning in January 2006, data reflect revised population controls used in the household survey.