Technical information: (202) 691-6378 USDL 07-1096 http://www.bls.gov/cps/ For release: 10:00 A.M. EDT Media contact: 691-5902 Thursday, July 19, 2007 USUAL WEEKLY EARNINGS OF WAGE AND SALARY WORKERS: SECOND QUARTER 2007 Median weekly earnings of the nation’s 106.9 million full-time wage and salary workers were $690 in the second quarter of 2007, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This was 4.7 percent higher than a year earlier compared with a gain of 2.7 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 Technical Note.) Highlights from the second-quarter data are: --Women who usually worked full time had median earnings of $607 per week, or 79.6 percent of the $763 median for men. The female-to-male earnings ratios were higher among Hispanics or Latinos (89.9 percent) and blacks (87.3 percent) than among whites (79.2 percent) or Asians (75.3 percent). (See table 1.) --Median earnings for black men working at full-time jobs were $597 per week, 76.2 percent of the median for white men ($783). The difference was less among women, as black women's median earnings ($521) were 84.0 percent of those for their white counterparts ($620). Overall, median earnings of Hispanics or Latinos who worked full time ($503) were lower than those of blacks ($562), whites ($713), and Asians ($827). (See table 1.) --Among men, those age 55 to 64 had the highest median weekly earnings ($950). Women age 45 to 54 had median earnings of $668, about the same as those age 55 to 64 ($664) and age 35 to 44 ($657). (See table 2.) --Among the major occupational groups, persons employed full time in managerial, professional, and related occupations had the highest median weekly earnings--$1,176 for men and $859 for women. Men and women in service jobs earned the least. (See table 3.) --Full-time workers age 25 and over without a high school diploma had median weekly earnings of $440 compared with $597 for high school graduates (no college) and $1,092 for those holding at least a bache- lor's degree. Among college graduates with advanced degrees (profes- sional or master's degree and above), the highest earning 10 percent of male workers made $2,914 or more per week compared with $1,979 or more for their female counterparts. (See table 4.) - 2 - Technical 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 scientif- ically 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 II II 2006 2007 II II II II 2006 2007 2006 2007 SEX AND AGE Total, 16 years and over.................................. 105,881 106,879 $659 $690 $315 $320 Men, 16 years and over................................. 59,983 60,507 731 763 349 355 16 to 24 years....................................... 6,684 6,537 421 436 201 203 25 years and over.................................... 53,299 53,970 783 819 374 381 Women, 16 years and over............................... 45,897 46,372 593 607 283 282 16 to 24 years....................................... 4,710 4,633 395 404 188 188 25 years and over.................................... 41,188 41,739 619 635 295 295 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White.................................................. 85,831 86,393 678 713 323 331 Men.................................................. 49,804 50,162 753 783 359 364 Women................................................ 36,026 36,232 602 620 287 288 Black or African American.............................. 12,748 13,048 534 562 255 261 Men.................................................. 6,084 6,190 573 597 274 278 Women................................................ 6,664 6,858 511 521 244 242 Asian.................................................. 4,858 5,025 765 827 365 384 Men.................................................. 2,780 2,766 843 942 402 438 Women................................................ 2,078 2,258 688 709 328 330 Hispanic or Latino ethnicity........................... 15,715 15,943 485 503 231 234 Men.................................................. 10,044 10,249 504 523 241 243 Women................................................ 5,671 5,694 434 470 207 218 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 2007, 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, second quarter 2007 averages, not seasonally adjusted Total Men Women Age, race, and Hispanic or Latino ethnicity Number of Number of Number of workers Median workers Median workers Median (in weekly (in weekly (in weekly thousands) earnings thousands) earnings thousands) earnings TOTAL 16 years and over........................................... 106,879 $690 60,507 $763 46,372 $607 16 to 24 years............................................ 11,170 421 6,537 436 4,633 404 16 to 19 years.......................................... 1,659 317 1,003 338 657 302 20 to 24 years.......................................... 9,510 445 5,535 464 3,976 426 25 years and over......................................... 95,709 735 53,970 819 41,739 635 25 to 54 years.......................................... 79,296 730 45,052 804 34,244 632 25 to 34 years........................................ 25,854 635 15,025 683 10,829 588 35 to 44 years........................................ 26,991 770 15,539 871 11,453 657 45 to 54 years........................................ 26,451 788 14,489 905 11,962 668 55 years and over....................................... 16,413 761 8,918 917 7,495 648 55 to 64 years........................................ 14,049 790 7,514 950 6,535 664 65 years and over..................................... 2,364 611 1,404 664 960 548 White 16 years and over........................................... 86,393 713 50,162 783 36,232 620 16 to 24 years............................................ 9,114 425 5,487 442 3,627 410 25 years and over......................................... 77,279 755 44,675 846 32,605 654 25 to 54 years.......................................... 63,459 749 36,998 827 26,461 651 55 years and over....................................... 13,820 787 7,677 940 6,143 667 Black or African American 16 years and over........................................... 13,048 562 6,190 597 6,858 521 16 to 24 years............................................ 1,352 389 681 401 671 368 25 years and over......................................... 11,696 591 5,509 623 6,187 554 25 to 54 years.......................................... 10,065 589 4,772 616 5,293 560 55 years and over....................................... 1,630 602 737 681 894 533 Asian 16 years and over........................................... 5,025 827 2,766 942 2,258 709 16 to 24 years............................................ 314 535 135 677 179 502 25 years and over......................................... 4,711 862 2,631 959 2,080 737 25 to 54 years.......................................... 3,997 872 2,265 969 1,732 742 55 years and over....................................... 714 803 366 894 348 697 Hispanic or Latino ethnicity 16 years and over........................................... 15,943 503 10,249 523 5,694 470 16 to 24 years............................................ 2,219 391 1,431 397 789 373 25 years and over......................................... 13,724 522 8,818 559 4,905 488 25 to 54 years.......................................... 12,411 520 7,976 555 4,435 486 55 years and over....................................... 1,313 556 843 585 470 507 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 identical as Hispanic or Latino may be of any race and, therefore, are classified by ethnicity as well as by race. Beginning in January 2007, data reflected 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 II II II II 2006 2007 2006 2007 TOTAL Management, professional, and related occupations................... 37,095 38,817 $967 $997 Management, business, and financial operations occupations........ 15,267 15,591 1,091 1,115 Professional and related occupations.............................. 21,827 23,226 911 945 Service occupations................................................. 14,933 14,811 421 459 Sales and office occupations........................................ 25,860 25,536 581 595 Sales and related occupations..................................... 10,682 10,477 615 640 Office and administrative support occupations..................... 15,177 15,059 561 578 Natural resources, construction, and maintenance occupations........ 12,430 12,565 643 658 Farming, fishing, and forestry occupations........................ 739 762 388 382 Construction and extraction occupations........................... 7,204 7,322 610 634 Installation, maintenance, and repair occupations................. 4,487 4,482 736 744 Production, transportation, and material moving occupations......... 15,564 15,149 554 578 Production occupations............................................ 8,576 8,596 549 583 Transportation and material moving occupations.................... 6,988 6,553 565 568 Men Management, professional, and related occupations................... 18,713 19,402 1,159 1,176 Management, business, and financial operations occupations........ 8,669 8,763 1,254 1,237 Professional and related occupations.............................. 10,044 10,639 1,090 1,142 Service occupations................................................. 7,237 7,526 492 521 Sales and office occupations........................................ 9,827 9,632 669 722 Sales and related occupations..................................... 5,952 5,831 735 802 Office and administrative support occupations..................... 3,875 3,801 600 613 Natural resources, construction, and maintenance occupations........ 11,947 12,141 648 661 Farming, fishing, and forestry occupations........................ 542 612 411 394 Construction and extraction occupations........................... 7,071 7,192 611 635 Installation, maintenance, and repair occupations................. 4,334 4,336 734 741 Production, transportation, and material moving occupations......... 12,259 11,806 598 619 Production occupations............................................ 6,153 6,154 615 643 Transportation and material moving occupations.................... 6,105 5,652 587 597 Women Management, professional, and related occupations................... 18,381 19,415 829 859 Management, business, and financial operations occupations........ 6,598 6,827 899 952 Professional and related occupations.............................. 11,783 12,587 781 823 Service occupations................................................. 7,696 7,285 389 404 Sales and office occupations........................................ 16,032 15,904 534 546 Sales and related occupations..................................... 4,730 4,646 491 489 Office and administrative support occupations..................... 11,302 11,257 551 569 Natural resources, construction, and maintenance occupations........ 483 425 504 559 Farming, fishing, and forestry occupations........................ 197 149 305 351 Construction and extraction occupations........................... 133 130 542 566 Installation, maintenance, and repair occupations................. 153 146 837 782 Production, transportation, and material moving occupations......... 3,305 3,343 424 448 Production occupations............................................ 2,423 2,442 427 448 Transportation and material moving occupations.................... 883 901 415 446 NOTE: Beginning in January 2007, data reflected 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, second quarter 2007 averages, not seasonally adjusted Number of Upper limit of: workers Characteristic (in thousands) First First Second Third Ninth decile quartile quartile quartile decile (median) SEX, RACE, AND HISPANIC OR LATINO ETHNICITY Total, 16 years and over....................................... 106,879 $328 $463 $690 $1,067 $1,605 Men.......................................................... 60,507 355 502 763 1,182 1,840 Women........................................................ 46,372 309 416 607 913 1,337 White........................................................ 86,393 333 477 713 1,099 1,656 Men........................................................ 50,162 361 514 783 1,213 1,882 Women...................................................... 36,232 313 425 620 936 1,364 Black or African American.................................... 13,048 305 402 562 807 1,173 Men........................................................ 6,190 328 422 597 880 1,247 Women...................................................... 6,858 293 385 521 756 1,108 Asian........................................................ 5,025 351 511 827 1,329 1,885 Men........................................................ 2,766 406 598 942 1,533 2,029 Women...................................................... 2,258 314 446 709 1,119 1,591 Hispanic or Latino ethnicity................................. 15,943 289 361 503 750 1,117 Men........................................................ 10,249 297 379 523 793 1,187 Women...................................................... 5,694 274 333 470 665 964 EDUCATIONAL ATTAINMENT Total, 25 years and over....................................... 95,709 353 494 735 1,130 1,667 Less than a high school diploma.............................. 9,224 282 328 440 613 868 High school graduates, no college (1)........................ 28,326 327 428 597 840 1,151 Some college or associate degree............................. 25,654 375 500 704 1,005 1,396 Bachelor's degree and higher (2)............................. 32,505 523 746 1,092 1,595 2,291 Bachelor's degree only..................................... 21,228 499 708 1,014 1,491 2,093 Advanced degree............................................ 11,277 612 850 1,220 1,832 2,507 Men, 25 years and over....................................... 53,970 385 545 819 1,247 1,889 Less than a high school diploma............................ 6,406 291 355 490 669 931 High school graduates, no college (1)...................... 16,424 374 494 680 954 1,280 Some college or associate degree........................... 13,402 415 584 820 1,153 1,555 Bachelor's degree and higher (2)........................... 17,738 592 838 1,244 1,878 2,710 Bachelor's degree only................................... 11,447 552 782 1,169 1,744 2,495 Advanced degree.......................................... 6,291 668 938 1,397 2,034 2,914 Women, 25 years and over..................................... 41,739 325 441 635 956 1,381 Less than a high school diploma............................ 2,818 257 301 377 488 614 High school graduates, no college (1)...................... 11,902 299 382 508 685 920 Some college or associate degree........................... 12,252 337 444 605 832 1,148 Bachelor's degree and higher (2)........................... 14,767 488 671 943 1,324 1,833 Bachelor's degree only................................... 9,781 468 633 876 1,242 1,725 Advanced degree.......................................... 4,986 561 760 1,068 1,451 1,979 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 identical as Hispanic or Latino may be of any race and, therefore, are classified by ethnicity as well as by race. Beginning in January 2007, data reflected 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 II II II II 2006 2007 2006 2007 SEX AND AGE Total, 16 years and over............................................ 21,862 22,470 $204 $207 Men, 16 years and over............................................ 6,660 6,909 190 194 16 to 24 years.................................................. 3,433 3,514 152 161 25 years and over............................................... 3,227 3,396 248 248 Women, 16 years and over.......................................... 15,202 15,561 210 214 16 to 24 years.................................................. 4,746 4,758 148 153 25 years and over............................................... 10,456 10,802 249 256 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White........................................................... 18,382 18,834 206 208 Men......................................................... 5,508 5,647 190 193 Women....................................................... 12,874 13,186 212 216 Black or African American....................................... 2,125 2,194 193 197 Men......................................................... 710 752 187 195 Women....................................................... 1,415 1,442 195 200 Asian........................................................... 876 861 213 227 Men......................................................... 267 313 193 217 Women....................................................... 609 548 228 239 Hispanic or Latino ethnicity.................................... 2,384 2,521 203 206 Men......................................................... 755 835 219 227 Women....................................................... 1,629 1,686 198 200 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 identical as Hispanic or Latino may be of any race and, therefore, are classified by ethnicity as well as by race. Beginning in January 2007, data reflected revised population controls used in the household survey.