Technical information: (202) 691-6378 USDL 04-646 http://www.bls.gov/cps/ For release: 10:00 A.M. EDT Media contact: 691-5902 Friday, April 16, 2004 USUAL WEEKLY EARNINGS OF WAGE AND SALARY WORKERS: FIRST QUARTER 2004 Median weekly earnings of the nation's 99.7 million full-time wage and salary workers were $634 in the first quarter of 2004, 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 1.8 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 $567 per week, or 79.7 percent of the $711 median for men. The female-to-male earnings ratios were higher among blacks (87.8 percent) and Hispanics or Latinos (87.2 percent) than among whites (79.6 percent) or Asians (77.8 percent). (See table 1.) --Median earnings for black men working at full-time jobs were $567 per week, 77.8 percent of the median for white men ($729). The difference was less among women, as black women's median earnings ($498) were 85.9 percent of those for their white counterparts ($580). Overall, median earnings of Hispanics or Latinos who worked full time ($450) were lower than those of blacks ($521), whites ($652), and Asians ($712). (See table 1.) --Among men, those age 45 to 54 and age 55 to 64 had the highest median weekly earnings, $849 and $844, respectively. Among women, earnings also were highest for these two age groups--$620 for 45- to 54-year olds and $606 for 55- to 64-year olds. (See table 2.) --Among the major occupational groups, persons employed full time in managerial, professional, and related occupations had the highest median weekly earnings--$1,099 for men and $767 for women. Men and women in service occupations earned the least. (See table 3.) --Full-time workers age 25 and over without a high school diploma had median weekly earnings of $396, compared with $562 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 $2,712 or more per week, compared with $1,883 or more for their female counterparts. (See table 4.) 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. 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). - 2 - 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 2003 2004 I I I I 2003 2004 2003 2004 SEX AND AGE Total, 16 years and over.................................. 98,988 99,720 $620 $634 $327 $328 Men, 16 years and over................................. 55,162 55,888 695 711 366 368 16 to 24 years....................................... 5,829 5,762 396 410 209 212 25 years and over.................................... 49,333 50,126 741 757 391 392 Women, 16 years and over............................... 43,826 43,832 551 567 291 294 16 to 24 years....................................... 4,266 4,342 384 387 202 200 25 years and over.................................... 39,560 39,490 581 592 306 307 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White.................................................. 80,878 81,271 636 652 336 338 Men.................................................. 46,184 46,562 713 729 376 378 Women................................................ 34,694 34,709 563 580 297 300 Black or African American.............................. 11,706 11,796 516 521 272 270 Men.................................................. 5,443 5,585 552 567 291 293 Women................................................ 6,263 6,211 493 498 260 258 Asian.................................................. 4,230 4,440 718 712 379 369 Men.................................................. 2,365 2,489 793 790 418 409 Women................................................ 1,865 1,951 620 615 327 318 Hispanic or Latino..................................... 13,653 13,648 447 450 236 233 Men.................................................. 8,611 8,678 471 478 249 248 Women................................................ 5,042 4,970 416 417 219 216 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 2004, 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 2004 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......................................... 99,720 $634 55,888 $711 43,832 $567 16 to 24 years.......................................... 10,104 399 5,762 410 4,342 387 16 to 19 years........................................ 1,282 315 787 320 495 307 20 to 24 years........................................ 8,822 412 4,974 427 3,847 398 25 years and over....................................... 89,616 676 50,126 757 39,490 592 25 to 54 years........................................ 75,937 673 42,746 749 33,191 592 25 to 34 years...................................... 24,397 603 14,154 648 10,243 551 35 to 44 years...................................... 26,694 695 15,287 773 11,407 600 45 to 54 years...................................... 24,845 740 13,305 849 11,540 620 55 years and over..................................... 13,679 696 7,380 817 6,299 593 55 to 64 years...................................... 11,827 719 6,371 844 5,456 606 65 years and over................................... 1,852 521 1,009 645 843 456 White 16 years and over......................................... 81,271 652 46,562 729 34,709 580 16 to 24 years.......................................... 8,204 401 4,798 413 3,407 389 25 years and over....................................... 73,067 696 41,764 780 31,302 602 25 to 54 years........................................ 61,478 692 35,431 769 26,047 603 55 years and over..................................... 11,589 722 6,333 858 5,255 601 Black or African American 16 years and over......................................... 11,796 521 5,585 567 6,211 498 16 to 24 years.......................................... 1,229 358 599 365 630 353 25 years and over....................................... 10,567 549 4,986 600 5,581 512 25 to 54 years........................................ 9,190 545 4,339 591 4,851 510 55 years and over..................................... 1,378 586 648 661 730 524 Asian 16 years and over......................................... 4,440 712 2,489 790 1,951 615 16 to 24 years.......................................... 357 432 189 449 168 419 25 years and over....................................... 4,083 742 2,299 847 1,784 647 25 to 54 years........................................ 3,562 756 2,012 888 1,550 661 55 years and over..................................... 521 636 287 722 234 600 Hispanic or Latino 16 years and over......................................... 13,648 450 8,678 478 4,970 417 16 to 24 years.......................................... 2,082 358 1,376 359 706 355 25 years and over....................................... 11,566 480 7,302 501 4,264 438 25 to 54 years........................................ 10,540 476 6,669 498 3,871 436 55 years and over..................................... 1,026 511 633 583 393 464 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 2004, 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 2003 2004 2003 2004 TOTAL Managerial, professional, and related occupations........ 35,451 36,362 $893 $914 Management, business, and financial operations occupations........................................... 14,374 15,047 954 982 Professional and related occupations................... 21,077 21,315 854 865 Service occupations...................................... 13,327 12,985 407 410 Sales and office occupations............................. 24,625 24,705 541 555 Sales and related occupations.......................... 9,853 9,978 594 605 Office and administrative support occupations.......... 14,772 14,726 522 532 Natural resources, construction, and maintenance occupations............................................. 10,581 10,617 610 629 Farming, fishing, and forestry occupations............. 678 637 365 327 Construction and extraction occupations................ 5,561 5,641 601 608 Installation, maintenance, and repair occupations...... 4,342 4,340 668 713 Production, transportation, and material moving occupations............................................. 15,005 15,052 519 519 Production occupations................................. 8,493 8,588 524 522 Transportation and material moving occupations......... 6,511 6,465 513 515 Men Managerial, professional, and related occupations........ 17,569 18,013 1,058 1,099 Management, business, and financial operations occupations........................................... 7,936 8,277 1,140 1,168 Professional and related occupations................... 9,633 9,736 1,018 1,037 Service occupations...................................... 6,620 6,510 477 476 Sales and office occupations............................. 9,192 9,380 645 656 Sales and related occupations.......................... 5,416 5,620 703 741 Office and administrative support occupations.......... 3,776 3,759 583 566 Natural resources, construction, and maintenance occupations............................................. 10,116 10,240 615 635 Farming, fishing, and forestry occupations............. 541 505 376 345 Construction and extraction occupations................ 5,408 5,543 605 608 Installation, maintenance, and repair occupations...... 4,167 4,192 669 712 Production, transportation, and material moving occupations............................................. 11,665 11,745 563 575 Production occupations................................. 6,014 6,118 581 594 Transportation and material moving occupations......... 5,651 5,627 534 538 Women Managerial, professional, and related occupations........ 17,882 18,349 756 767 Management, business, and financial operations occupations........................................... 6,437 6,769 793 809 Professional and related occupations................... 11,444 11,579 740 750 Service occupations...................................... 6,707 6,475 366 375 Sales and office occupations............................. 15,432 15,325 503 515 Sales and related occupations.......................... 4,437 4,358 461 476 Office and administrative support occupations.......... 10,996 10,967 512 523 Natural resources, construction, and maintenance occupations............................................. 466 377 483 460 Farming, fishing, and forestry occupations............. 137 132 323 306 Construction and extraction occupations................ 153 98 480 (1) Installation, maintenance, and repair occupations...... 175 147 631 724 Production, transportation, and material moving occupations............................................. 3,339 3,308 407 404 Production occupations................................. 2,479 2,469 411 400 Transportation and material moving occupations......... 860 838 397 413 1 Data not shown where base is less than 100,000. NOTE: Beginning in January 2004, 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 2004 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.................................. 99,720 $307 $421 $634 $973 $1,458 Men..................................................... 55,888 325 473 711 1,102 1,649 Women................................................... 43,832 290 388 567 829 1,201 White................................................... 81,271 311 434 652 999 1,490 Men................................................... 46,562 330 484 729 1,132 1,685 Women................................................. 34,709 295 396 580 847 1,226 Black or African American............................... 11,796 285 364 521 748 1,098 Men................................................... 5,585 300 391 567 823 1,178 Women................................................. 6,211 273 344 498 694 1,003 Asian................................................... 4,440 323 448 712 1,144 1,758 Men................................................... 2,489 370 505 790 1,270 2,075 Women................................................. 1,951 294 404 615 957 1,482 Hispanic or Latino...................................... 13,648 264 323 450 671 988 Men................................................... 8,678 276 333 478 702 1,018 Women................................................. 4,970 247 309 417 603 926 EDUCATIONAL ATTAINMENT Total, 25 years and over................................ 89,616 323 456 676 1,019 1,518 Less than a high school diploma....................... 8,433 248 304 396 551 758 High school graduates, no college(1).................. 26,999 301 397 562 773 1,055 Some college or associate degree...................... 24,361 345 470 649 925 1,255 Bachelor's degree and higher(2)....................... 29,824 491 689 996 1,460 2,023 Bachelor's degree only.............................. 19,334 461 639 926 1,362 1,901 Advanced degree..................................... 10,489 586 790 1,149 1,662 2,380 Men, 25 years and over................................ 50,126 353 506 757 1,152 1,737 Less than a high school diploma..................... 5,624 268 323 434 606 828 High school graduates, no college(1)................ 15,147 337 462 640 884 1,187 Some college or associate degree.................... 12,791 383 530 747 1,046 1,420 Bachelor's degree and higher(2)..................... 16,563 534 777 1,148 1,704 2,322 Bachelor's degree only............................ 10,816 502 734 1,070 1,557 2,120 Advanced degree................................... 5,748 618 909 1,352 1,902 2,712 Women, 25 years and over.............................. 39,490 300 406 592 862 1,243 Less than a high school diploma..................... 2,809 231 279 339 441 582 High school graduates, no college(1)................ 11,852 278 350 479 634 859 Some college or associate degree.................... 11,570 320 416 571 773 1,042 Bachelor's degree and higher(2)..................... 13,260 456 618 855 1,213 1,634 Bachelor's degree only............................ 8,519 421 585 782 1,118 1,497 Advanced degree................................... 4,741 556 727 982 1,349 1,883 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 2004, 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 2003 2004 2003 2004 SEX AND AGE Total, 16 years and over.................................. 22,154 22,127 $184 $192 Men, 16 years and over................................. 6,988 7,057 172 180 16 to 24 years....................................... 3,557 3,624 137 140 25 years and over.................................... 3,431 3,433 225 240 Women, 16 years and over............................... 15,165 15,071 191 198 16 to 24 years....................................... 4,696 4,614 129 136 25 years and over.................................... 10,469 10,457 224 232 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White.................................................. 18,761 18,665 185 194 Men.................................................. 5,754 5,813 167 179 Women................................................ 13,007 12,852 193 200 Black or African American.............................. 2,050 2,098 178 191 Men.................................................. 762 721 192 200 Women................................................ 1,287 1,377 169 189 Asian.................................................. 804 856 202 168 Men.................................................. 298 342 206 161 Women................................................ 506 514 198 175 Hispanic or Latino..................................... 2,183 2,338 181 195 Men.................................................. 775 825 200 203 Women................................................ 1,408 1,513 171 190 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 2004, data reflect revised population controls used in the household survey.