Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 691-6378 USDL 00-301 For release: 10:00 A.M. EDT Media contact: 691-5902 Thursday, October 19, 2000 USUAL WEEKLY EARNINGS OF WAGE AND SALARY WORKERS: THIRD QUARTER 2000 Median weekly earnings of the nation's 101.5 million full-time wage and salary workers were $575 in the third quarter of 2000, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This was 5.3 percent higher than a year earlier, compared with a gain of 3.5 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 (CPS), 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 third-quarter data are: --Women who usually worked full time had median earnings of $491 per week, or 76.7 percent of the $640 median for men. The female-to-male earnings ratios were higher among Hispanics (90.6 percent) and blacks (88.2 percent) than among whites (74.8 percent). (See table 1.) --Median earnings for black men working at full-time jobs were $492 per week, 74.1 percent of the median for white men ($664). The difference was much less among women, as black women's median earnings ($434) were 87.3 percent of those for their white counterparts ($497). Overall, median earnings of Hispanics who worked full time ($402) were lower than those of blacks ($463) and whites ($590). --Among men, the $761 median weekly earnings level of 45- to 54-year- olds was the highest of any age group. Among women, earnings also were highest for those 45 to 54 years ($580). (See table 2.) --Among the major occupational groups, persons employed full time in managerial and professional specialty occupations had the highest median weekly earnings--$994 for men and $706 for women. Men and women in service and farm jobs earned the least. (See table 3.) --Full-time workers age 25 and over without a high school diploma had median weekly earnings of $358, compared with $509 for high school graduates (no college) and $900 for college graduates. Among college graduates with advanced degrees (professional or master's degree and above), the highest-earning 10 percent of male workers made $2,404 or more per week, compared with $1,655 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 50,000 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 the February 1994 and subsequent issues 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). 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. - 2 - 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 origin. Refers to persons who are of Mexican, Puerto Rican, Cuban, Central or South American, or other Hispanic origin or descent. Persons of Hispanic origin may be of any race; hence, they are included in the numbers for the white and black populations. 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(1) III III 1999 2000 III III III III 1999 2000 1999 2000 SEX AND AGE Total, 16 years and over.................................. 99,052 101,462 $546 $575 $315 $321 Men, 16 years and over................................. 56,199 57,430 614 640 354 356 16 to 24 years....................................... 7,296 7,719 347 378 200 211 25 years and over.................................... 48,903 49,711 668 700 386 390 Women, 16 years and over............................... 42,853 44,031 474 491 273 273 16 to 24 years....................................... 5,433 5,872 323 335 186 187 25 years and over.................................... 37,421 38,160 500 519 289 289 RACE, HISPANIC ORIGIN, AND SEX White.................................................. 81,874 83,623 569 590 328 329 Men.................................................. 47,670 48,505 632 664 365 370 Women................................................ 34,204 35,117 483 497 278 277 Black.................................................. 12,496 12,776 454 463 262 258 Men.................................................. 5,972 6,143 492 492 284 274 Women................................................ 6,524 6,633 416 434 240 242 Hispanic origin........................................ 11,087 11,767 392 402 226 224 Men.................................................. 6,841 7,271 410 416 237 232 Women................................................ 4,246 4,496 356 377 205 210 1 Corrections to the Consumer Price Index (CPI) for January through August 2000 resulted in minor changes to a few median weekly earnings figures expressed in constant (1982) dollars for the first and second quarters of 2000. The constant dollar median weekly earnings of full-time wage and salary workers age 16 and over for the first quarter of 2000 has been revised to $326, down $1 from what was originally published. In addition, the first quarter figures for all men age 16 and over and for black men were revised down by $1 to $368 and $281, respectively. In the second quarter, the figures for all women 16 and over and for all black workers were revised down by $1 to $272 and $262, respectively. For analytical purposes, the effect of the corrections in the CPI on the adjusted median weekly earnings figures is negligible. NOTE: Detail for the above race and Hispanic-origin groups will not sum to totals because data for the "other races" group are not presented and Hispanics are included in both the white and black population groups. Beginning in January 2000, 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 origin, and sex, third quarter 2000 averages, not seasonally adjusted Total Men Women Age, race, and Hispanic origin 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......................................... 101,462 $575 57,430 $640 44,031 $491 16 to 24 years.......................................... 13,591 360 7,719 378 5,872 335 16 to 19 years........................................ 3,110 293 1,811 301 1,299 280 20 to 24 years........................................ 10,481 388 5,908 403 4,573 364 25 years and over....................................... 87,871 615 49,711 700 38,160 519 25 to 54 years........................................ 77,023 616 43,562 698 33,460 523 25 to 34 years...................................... 25,163 569 14,534 610 10,629 500 35 to 44 years...................................... 28,988 629 16,582 735 12,406 514 45 to 54 years...................................... 22,872 673 12,446 761 10,426 580 55 years and over..................................... 10,848 605 6,149 715 4,699 497 55 to 64 years...................................... 9,451 619 5,301 729 4,151 510 65 years and over................................... 1,397 477 848 588 549 382 White 16 years and over......................................... 83,623 590 48,505 664 35,117 497 16 to 24 years.......................................... 11,470 362 6,694 379 4,775 337 25 years and over....................................... 72,153 634 41,811 725 30,342 530 25 to 54 years........................................ 62,931 636 36,492 723 26,439 536 55 years and over..................................... 9,222 619 5,319 735 3,903 505 Black 16 years and over......................................... 12,776 463 6,143 492 6,633 434 16 to 24 years.......................................... 1,607 338 778 359 829 323 25 years and over....................................... 11,169 494 5,365 522 5,804 464 25 to 54 years........................................ 10,040 496 4,807 521 5,233 470 55 years and over..................................... 1,129 463 558 526 571 402 Hispanic origin 16 years and over......................................... 11,767 402 7,271 416 4,496 377 16 to 24 years.......................................... 2,176 316 1,369 318 808 309 25 years and over....................................... 9,590 429 5,902 459 3,688 395 25 to 54 years........................................ 8,798 431 5,395 459 3,403 399 55 years and over..................................... 793 402 507 463 286 343 NOTE: Detail for the above race and Hispanic-origin groups will not sum to totals because data for the "other races" group are not presented and Hispanics are included in both the white and black population groups. Beginning in January 2000, 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 III III III III 1999 2000 1999 2000 TOTAL Managerial and professional specialty.................... 30,779 31,849 $806 $833 Executive, administrative, and managerial.............. 14,792 15,482 796 850 Professional specialty................................. 15,988 16,367 812 817 Technical, sales, and administrative support............. 27,749 28,620 485 504 Technicians and related support........................ 3,634 3,780 608 654 Sales occupations...................................... 9,860 10,237 515 557 Administrative support, including clerical............. 14,255 14,603 449 463 Service occupations...................................... 11,302 11,035 336 352 Private household...................................... 487 351 246 252 Protective service..................................... 2,191 2,147 587 638 Service, except private household and protective....... 8,624 8,537 313 324 Precision production, craft, and repair.................. 11,914 12,336 598 612 Mechanics and repairers................................ 4,383 4,287 622 648 Construction trades.................................... 4,043 4,553 560 592 Other precision production, craft, and repair.......... 3,488 3,495 605 599 Operators, fabricators, and laborers..................... 15,429 15,740 431 433 Machine operators, assemblers, and inspectors.......... 6,771 6,631 426 423 Transportation and material moving occupations......... 4,678 4,724 515 532 Handlers, equipment cleaners, helpers, and laborers.... 3,980 4,386 351 380 Farming, forestry, and fishing........................... 1,879 1,881 331 345 Men Managerial and professional specialty.................... 15,635 16,144 955 994 Executive, administrative, and managerial.............. 7,998 8,319 963 1,026 Professional specialty................................. 7,637 7,824 948 962 Technical, sales, and administrative support............. 10,664 11,072 620 651 Technicians and related support........................ 1,863 1,941 708 766 Sales occupations...................................... 5,491 5,564 683 691 Administrative support, including clerical............. 3,310 3,567 527 545 Service occupations...................................... 5,422 5,230 394 411 Private household...................................... 25 6 (1) (1) Protective service..................................... 1,804 1,796 614 678 Service, except private household and protective....... 3,593 3,427 331 347 Precision production, craft, and repair.................. 10,863 11,285 608 621 Mechanics and repairers................................ 4,182 4,082 621 645 Construction trades.................................... 3,941 4,461 566 595 Other precision production, craft, and repair.......... 2,740 2,741 651 639 Operators, fabricators, and laborers..................... 11,996 12,130 475 475 Machine operators, assemblers, and inspectors.......... 4,418 4,205 483 480 Transportation and material moving occupations......... 4,391 4,341 521 552 Handlers, equipment cleaners, helpers, and laborers.... 3,186 3,584 365 394 Farming, forestry, and fishing........................... 1,620 1,570 335 362 Women Managerial and professional specialty.................... 15,145 15,705 690 706 Executive, administrative, and managerial.............. 6,794 7,163 665 682 Professional specialty................................. 8,351 8,543 709 725 Technical, sales, and administrative support............. 17,085 17,548 430 449 Technicians and related support........................ 1,771 1,839 533 539 Sales occupations...................................... 4,370 4,673 385 413 Administrative support, including clerical............. 10,944 11,036 432 443 Service occupations...................................... 5,879 5,805 304 316 Private household...................................... 462 345 244 251 Protective service..................................... 388 351 488 502 Service, except private household and protective....... 5,030 5,110 304 316 Precision production, craft, and repair.................. 1,051 1,051 464 466 Mechanics and repairers................................ 202 205 677 695 Construction trades.................................... 101 92 436 (1) Other precision production, craft, and repair.......... 748 754 435 423 Operators, fabricators, and laborers..................... 3,434 3,611 335 355 Machine operators, assemblers, and inspectors.......... 2,353 2,426 336 363 Transportation and material moving occupations......... 287 383 398 382 Handlers, equipment cleaners, helpers, and laborers.... 794 802 316 321 Farming, forestry, and fishing........................... 260 311 316 291 1 Data not shown where base is less than 100,000. Beginning in January 2000, 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, third quarter 2000 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 ORIGIN Total, 16 years and over.................................. 101,462 $277 $377 $575 $859 $1,287 Men..................................................... 57,430 296 415 640 972 1,459 Women................................................... 44,031 253 335 491 723 1,036 White................................................... 83,623 281 387 590 888 1,340 Men................................................... 48,505 301 431 664 1,000 1,490 Women................................................. 35,117 256 343 497 734 1,058 Black................................................... 12,776 249 323 463 680 923 Men................................................... 6,143 264 349 492 707 979 Women................................................. 6,633 239 307 434 645 872 Hispanic................................................ 11,767 236 295 402 604 866 Men................................................... 7,271 248 306 416 630 942 Women................................................. 4,496 220 278 377 550 771 EDUCATIONAL ATTAINMENT Total, 25 years and over................................ 87,871 294 408 615 914 1,369 Less than a high school diploma....................... 8,372 226 279 358 502 701 High school graduates, no college..................... 27,172 278 366 509 722 972 Some college or associate degree...................... 24,979 314 424 603 839 1,138 College graduates, total.............................. 27,348 445 624 900 1,357 1,885 Bachelor's degree only.............................. 18,193 414 593 836 1,252 1,753 Advanced degree..................................... 9,155 535 727 1,028 1,519 2,085 Men, 25 years and over................................ 49,711 323 474 700 1,026 1,532 Less than a high school diploma..................... 5,404 245 303 406 580 762 High school graduates, no college................... 15,374 308 414 595 812 1,070 Some college or associate degree.................... 13,445 360 504 703 964 1,280 College graduates, total............................ 15,488 495 701 1,028 1,519 2,088 Bachelor's degree only............................ 10,309 478 668 957 1,432 1,908 Advanced degree................................... 5,178 562 779 1,188 1,728 2,404 Women, 25 years and over.............................. 38,160 270 360 519 756 1,092 Less than a high school diploma..................... 2,967 195 246 303 388 502 High school graduates, no college................... 11,798 251 319 429 590 759 Some college or associate degree.................... 11,534 288 376 505 694 904 College graduates, total............................ 11,861 393 573 765 1,100 1,511 Bachelor's degree only............................ 7,884 360 517 713 1,017 1,397 Advanced degree................................... 3,977 510 665 896 1,245 1,655 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. Detail for the above race and Hispanic-origin groups will not sum to totals because data for the "other races" group are not presented and Hispanics are included in both the white and black population groups. Beginning in January 2000, 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 III III III III 1999 2000 1999 2000 SEX AND AGE Total, 16 years and over.................................. 19,996 19,103 $171 $174 Men, 16 years and over................................. 6,135 5,721 162 159 16 to 24 years....................................... 3,383 3,169 137 137 25 years and over.................................... 2,752 2,552 209 211 Women, 16 years and over............................... 13,861 13,382 175 183 16 to 24 years....................................... 4,330 4,168 130 140 25 years and over.................................... 9,531 9,214 208 210 RACE, HISPANIC ORIGIN, AND SEX White.................................................. 17,316 16,578 171 176 Men.................................................. 5,222 4,871 162 159 Women................................................ 12,094 11,707 177 185 Black.................................................. 1,915 1,747 164 160 Men.................................................. 626 576 157 158 Women................................................ 1,289 1,171 167 161 Hispanic origin........................................ 1,793 1,634 161 159 Men.................................................. 711 483 180 161 Women................................................ 1,081 1,151 150 159 NOTE: Detail for the above race and Hispanic-origin groups will not sum to totals because data for the "other races" group are not presented and Hispanics are included in both the white and black population groups. Beginning in January 2000, data reflect revised population controls used in the household survey.