Technical information: (202) 691-6378 USDL 05-1297 http://www.bls.gov/cps/ For release: 10:00 A.M. EDT Media contact: 691-5902 Wednesday, July 20, 2005 USUAL WEEKLY EARNINGS OF WAGE AND SALARY WORKERS: SECOND QUARTER 2005 Median weekly earnings of the nation's 103.3 million full-time wage and salary workers were $643 in the second quarter of 2005, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This was 0.6 percent higher than a year earlier, compared with a gain of 3.0 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 second-quarter data are: --Women who usually worked full time had median earnings of $580 per week, or 81.3 percent of the $713 median for men. The female-to-male earn- ings ratios were higher among Hispanics or Latinos (89.7 percent) and blacks (86.2 percent) than among Asians (82.0 percent) or whites (80.6 percent). (See table 1.) --Median earnings for black men working at full-time jobs were $565 per week, 77.2 percent of the median for white men ($732). The difference was less among women, as black women's median earnings ($487) were 82.5 percent of those for their white counterparts ($590). Overall, median earnings of Hispanics or Latinos who worked full time ($473) were lower than those of blacks ($518), whites ($663), and Asians ($743). (See table 1.) --Among men, those age 45 to 54 and age 55 to 64 had the highest median weekly earnings, $848 and $841, respectively. Among women, earnings also were highest for 45- to 54-year-olds and 55- to 64-year-olds, $636 and $624, respectively. (See table 2.) --Among the major occupational groups, persons employed full time in managerial, professional, and related occupations had the highest median weekly earnings--$1,089 for men and $805 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 $412, compared with $584 for high school graduates (no college) and $996 for college graduates holding at least a bachelor's degree. Among college graduates with advanced degrees (professional or master's degree and above), the highest-earning 10 percent of male workers made $2,888 or more per week, compared with $1,914 or more for their female counterparts. (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 II II 2004 2005 II II II II 2004 2005 2004 2005 SEX AND AGE Total, 16 years and over.................................. 101,300 103,332 $639 $643 $326 $319 Men, 16 years and over................................. 57,034 58,242 714 713 364 354 16 to 24 years....................................... 6,272 6,511 397 407 203 202 25 years and over.................................... 50,763 51,730 763 762 389 378 Women, 16 years and over............................... 44,266 45,090 572 580 292 288 16 to 24 years....................................... 4,691 4,708 370 374 189 186 25 years and over.................................... 39,575 40,382 601 608 307 301 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White.................................................. 82,756 83,903 655 663 334 329 Men.................................................. 47,688 48,487 729 732 372 363 Women................................................ 35,067 35,416 583 590 298 293 Black or African American.............................. 12,014 12,293 536 518 274 257 Men.................................................. 5,669 5,882 598 565 305 280 Women................................................ 6,344 6,411 504 487 257 241 Asian.................................................. 4,328 4,697 720 743 368 369 Men.................................................. 2,404 2,580 807 810 412 402 Women................................................ 1,924 2,118 653 664 333 329 Hispanic or Latino..................................... 14,324 14,817 451 473 230 235 Men.................................................. 9,163 9,575 477 487 244 242 Women................................................ 5,160 5,242 414 437 211 217 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 2005, 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 2005 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......................................... 103,332 $643 58,242 $713 45,090 $580 16 to 24 years.......................................... 11,219 393 6,511 407 4,708 374 16 to 19 years........................................ 1,718 311 995 319 723 300 20 to 24 years........................................ 9,501 408 5,516 421 3,985 389 25 years and over....................................... 92,113 688 51,730 762 40,382 608 25 to 54 years........................................ 77,459 685 43,812 756 33,647 608 25 to 34 years...................................... 24,861 604 14,471 628 10,390 574 35 to 44 years...................................... 27,101 728 15,537 804 11,564 620 45 to 54 years...................................... 25,497 743 13,803 848 11,694 636 55 years and over..................................... 14,654 707 7,919 806 6,735 605 55 to 64 years...................................... 12,761 732 6,904 841 5,857 624 65 years and over................................... 1,893 534 1,015 593 878 499 White 16 years and over......................................... 83,903 663 48,487 732 35,416 590 16 to 24 years.......................................... 9,124 403 5,398 418 3,726 383 25 years and over....................................... 74,779 710 43,089 785 31,690 619 25 to 54 years........................................ 62,515 706 36,320 776 26,195 619 55 years and over..................................... 12,264 729 6,769 849 5,495 615 Black or African American 16 years and over......................................... 12,293 518 5,882 565 6,411 487 16 to 24 years.......................................... 1,406 327 744 331 662 323 25 years and over....................................... 10,887 565 5,138 602 5,749 511 25 to 54 years........................................ 9,458 564 4,468 599 4,990 512 55 years and over..................................... 1,429 575 670 621 759 498 Asian 16 years and over......................................... 4,697 743 2,580 810 2,118 664 16 to 24 years.......................................... 274 437 161 459 113 384 25 years and over....................................... 4,423 765 2,418 841 2,005 677 25 to 54 years........................................ 3,742 779 2,086 856 1,656 687 55 years and over..................................... 681 687 332 742 349 627 Hispanic or Latino 16 years and over......................................... 14,817 473 9,575 487 5,242 437 16 to 24 years.......................................... 2,261 360 1,555 361 706 359 25 years and over....................................... 12,556 496 8,020 511 4,536 459 25 to 54 years........................................ 11,402 494 7,333 509 4,069 456 55 years and over..................................... 1,154 522 687 543 467 492 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 2005, 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 II II II II 2004 2005 2004 2005 TOTAL Managerial, professional, and related occupations.............. 36,217 36,148 $912 $926 Management, business, and financial operations occupations... 14,828 14,664 952 979 Professional and related occupations......................... 21,389 21,484 882 894 Service occupations............................................ 13,847 14,217 409 406 Sales and office occupations................................... 24,846 25,379 557 577 Sales and related occupations................................ 9,899 10,460 616 624 Office and administrative support occupations................ 14,947 14,918 525 550 Natural resources, construction, and maintenance occupations... 11,157 12,337 618 616 Farming, fishing, and forestry occupations................... 768 735 367 374 Construction and extraction occupations...................... 6,090 7,061 595 595 Installation, maintenance, and repair occupations............ 4,299 4,542 707 692 Production, transportation, and material moving occupations.... 15,233 15,250 523 546 Production occupations....................................... 8,496 8,373 520 552 Transportation and material moving occupations............... 6,737 6,878 528 536 Men Managerial, professional, and related occupations.............. 17,976 17,936 1,073 1,089 Management, business, and financial operations occupations... 8,183 8,131 1,134 1,144 Professional and related occupations......................... 9,793 9,805 1,046 1,054 Service occupations............................................ 7,012 6,937 474 473 Sales and office occupations................................... 9,435 9,623 664 684 Sales and related occupations................................ 5,601 5,806 753 744 Office and administrative support occupations................ 3,835 3,817 585 608 Natural resources, construction, and maintenance occupations... 10,669 11,793 623 621 Farming, fishing, and forestry occupations................... 632 575 382 402 Construction and extraction occupations...................... 5,963 6,873 596 599 Installation, maintenance, and repair occupations............ 4,073 4,344 711 693 Production, transportation, and material moving occupations.... 11,942 11,952 577 593 Production occupations....................................... 6,072 6,026 590 607 Transportation and material moving occupations............... 5,871 5,926 561 580 Women Managerial, professional, and related occupations.............. 18,241 18,211 782 805 Management, business, and financial operations occupations... 6,645 6,533 810 838 Professional and related occupations......................... 11,596 11,679 768 785 Service occupations............................................ 6,835 7,281 369 371 Sales and office occupations................................... 15,411 15,755 509 523 Sales and related occupations................................ 4,298 4,655 465 495 Office and administrative support occupations................ 11,112 11,101 516 531 Natural resources, construction, and maintenance occupations... 488 545 476 438 Farming, fishing, and forestry occupations................... 136 160 330 333 Construction and extraction occupations...................... 127 188 509 406 Installation, maintenance, and repair occupations............ 225 197 588 659 Production, transportation, and material moving occupations.... 3,291 3,298 405 409 Production occupations....................................... 2,424 2,347 407 417 Transportation and material moving occupations............... 867 951 402 391 NOTE: Beginning in January 2005, 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, second quarter 2005 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.................................. 103,332 $307 $424 $643 $981 $1,490 Men..................................................... 58,242 328 475 713 1,094 1,662 Women................................................... 45,090 290 389 580 854 1,243 White................................................... 83,903 314 441 663 1,009 1,535 Men................................................... 48,487 337 487 732 1,130 1,731 Women................................................. 35,416 294 400 590 867 1,272 Black or African American............................... 12,293 285 358 518 762 1,063 Men................................................... 5,882 297 389 565 799 1,139 Women................................................. 6,411 277 334 487 726 1,015 Asian................................................... 4,697 318 484 743 1,141 1,742 Men................................................... 2,580 332 518 810 1,245 1,885 Women................................................. 2,118 304 435 664 972 1,434 Hispanic or Latino...................................... 14,817 272 329 473 686 1,024 Men................................................... 9,575 282 345 487 719 1,083 Women................................................. 5,242 247 311 437 630 932 EDUCATIONAL ATTAINMENT Total, 25 years and over................................ 92,113 327 468 688 1,028 1,550 Less than a high school diploma....................... 9,091 252 310 412 583 808 High school graduates, no college(1).................. 27,859 309 408 584 811 1,105 Some college or associate degree...................... 25,100 344 481 661 938 1,284 Bachelor's degree and higher(2)....................... 30,062 492 691 996 1,510 2,103 Bachelor's degree only.............................. 19,728 460 636 920 1,366 1,913 Advanced degree..................................... 10,335 612 830 1,174 1,758 2,448 Men, 25 years and over................................ 51,730 365 512 762 1,153 1,749 Less than a high school diploma..................... 6,153 280 339 456 621 886 High school graduates, no college(1)................ 16,331 349 478 654 908 1,210 Some college or associate degree.................... 12,969 395 548 754 1,063 1,451 Bachelor's degree and higher(2)..................... 16,277 539 771 1,150 1,754 2,411 Bachelor's degree only............................ 10,527 498 719 1,050 1,603 2,204 Advanced degree................................... 5,750 653 925 1,358 1,944 2,888 Women, 25 years and over.............................. 40,382 302 411 608 890 1,291 Less than a high school diploma..................... 2,938 218 274 343 450 606 High school graduates, no college(1)................ 11,527 286 358 491 667 883 Some college or associate degree.................... 12,131 312 420 583 797 1,074 Bachelor's degree and higher(2)..................... 13,785 461 627 873 1,242 1,730 Bachelor's degree only............................ 9,201 428 588 800 1,131 1,561 Advanced degree................................... 4,585 575 753 1,013 1,437 1,914 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 2005, 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 II II II II 2004 2005 2004 2005 SEX AND AGE Total, 16 years and over.................................. 21,817 21,891 $195 $204 Men, 16 years and over................................. 6,860 6,962 178 194 16 to 24 years....................................... 3,558 3,339 150 152 25 years and over.................................... 3,302 3,623 226 245 Women, 16 years and over............................... 14,957 14,929 203 209 16 to 24 years....................................... 4,573 4,633 145 151 25 years and over.................................... 10,384 10,296 237 245 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White.................................................. 18,489 18,479 197 205 Men.................................................. 5,702 5,839 178 192 Women................................................ 12,787 12,640 205 211 Black or African American.............................. 1,953 2,120 192 201 Men.................................................. 663 697 183 206 Women................................................ 1,290 1,423 197 197 Asian.................................................. 781 792 193 197 Men.................................................. 291 256 183 189 Women................................................ 490 536 197 201 Hispanic or Latino..................................... 2,420 2,506 194 201 Men.................................................. 848 868 189 209 Women................................................ 1,571 1,637 197 196 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 2005, data reflect revised population controls used in the household survey.