Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 606-6378 USDL 99-301 For release: 10:00 A.M. EDT Media contact: 606-5902 Thursday, October 21, 1999 USUAL WEEKLY EARNINGS OF WAGE AND SALARY WORKERS: THIRD QUARTER 1999 Median weekly earnings of the nation's 99.1 million full-time wage and salary workers were $546 in the third quarter of 1999, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This was 5.0 percent higher than a year earlier, compared with a gain of 2.4 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 third quarter data are: --Women who usually worked full time had median earnings of $474 a week, or 77.2 percent of the $614 median for men. The female-to-male earnings ratios were higher among blacks (84.6 percent) and Hispanics (86.8 percent) than among whites (76.4 percent). (See table 1.) --Median earnings for black men working at full-time jobs were $492 per week, 77.8 percent of the median for white men ($632). The difference was much less among women, as black women's median earnings ($416) were 86.1 percent of those for their white counterparts ($483). Overall, median earnings of Hispanics who worked full time ($392) were lower than those of blacks ($454) and whites ($569). (See table 1.) --Among men, those in the 45- to 54-year age group had the highest median weekly earnings ($764), followed by 55- to 64-year-old men, with median earnings of $721. Among women, earnings also were highest for those 45-to- 54 years old, who had a median of $550. (See table 2.) --Among the major occupational groups, persons employed full time in managerial and professional specialty occupations had the highest median weekly earnings--$955 for men and $690 for women--while men and women in service and farm jobs earned the least. (See table 3.) --Full-time workers age 25 and over with less than a high school diploma had median weekly earnings of $348, compared with $495 for high school graduates (no college) and $867 for college graduates. Among college graduates with advanced degrees (professional or master's degree and above), the highest 10 percent of male workers earned $2,281 or more, compared with $1,562 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 Bureau of the Census from a scientifically 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: 202-606-STAT; TDD phone: 202-606-5897; TDD message referral phone number: 1-800-326-2577. 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 III III 1998 1999 III III III III 1998 1999 1998 1999 SEX AND AGE Total, 16 years and over.................................. 97,437 99,052 $520 $546 $307 $315 Men, 16 years and over................................. 55,378 56,199 593 614 350 354 16 to 24 years....................................... 7,086 7,296 323 347 191 200 25 years and over.................................... 48,292 48,903 639 668 378 386 Women, 16 years and over............................... 42,059 42,853 455 474 269 273 16 to 24 years....................................... 5,346 5,433 299 323 177 186 25 years and over.................................... 36,713 37,421 489 500 289 289 RACE, HISPANIC ORIGIN, AND SEX White.................................................. 81,096 81,874 540 569 319 328 Men.................................................. 47,142 47,670 610 632 361 365 Women................................................ 33,954 34,204 464 483 274 278 Black.................................................. 11,880 12,496 430 454 254 262 Men.................................................. 5,727 5,972 462 492 273 284 Women................................................ 6,153 6,524 407 416 241 240 Hispanic origin........................................ 10,582 11,087 382 392 225 226 Men.................................................. 6,720 6,841 398 410 235 237 Women................................................ 3,863 4,246 348 356 205 205 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 1999, 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 1999 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......................................... 99,052 $546 56,199 $614 42,853 $474 16 to 24 years.......................................... 12,729 336 7,296 347 5,433 323 16 to 19 years........................................ 2,965 277 1,781 284 1,183 268 20 to 24 years........................................ 9,765 365 5,515 374 4,249 351 25 years and over....................................... 86,323 595 48,903 668 37,421 500 25 to 54 years........................................ 75,993 595 43,007 664 32,986 503 25 to 34 years...................................... 25,430 518 14,607 571 10,823 471 35 to 44 years...................................... 28,741 612 16,439 702 12,302 504 45 to 54 years...................................... 21,822 662 11,962 764 9,860 550 55 years and over..................................... 10,330 592 5,895 699 4,435 480 55 to 64 years...................................... 9,028 608 5,081 721 3,947 501 65 years and over................................... 1,302 395 814 499 488 342 White 16 years and over......................................... 81,874 569 47,670 632 34,204 483 16 to 24 years.......................................... 10,624 340 6,269 350 4,356 323 25 years and over....................................... 71,250 610 41,402 693 29,848 510 25 to 54 years........................................ 62,338 611 36,223 690 26,115 512 55 years and over..................................... 8,912 602 5,179 718 3,733 491 Black 16 years and over......................................... 12,496 454 5,972 492 6,524 416 16 to 24 years.......................................... 1,611 319 766 315 845 322 25 years and over....................................... 10,885 481 5,207 516 5,679 439 25 to 54 years........................................ 9,888 483 4,727 516 5,161 444 55 years and over..................................... 997 455 480 526 517 401 Hispanic origin 16 years and over......................................... 11,087 392 6,841 410 4,246 356 16 to 24 years.......................................... 1,933 310 1,251 312 682 307 25 years and over....................................... 9,154 413 5,589 444 3,565 374 25 to 54 years........................................ 8,466 415 5,192 447 3,274 377 55 years and over..................................... 688 383 398 413 290 346 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 1999, 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 1998 1999 1998 1999 TOTAL Managerial and professional specialty.................... 28,996 30,779 $766 $806 Executive, administrative, and managerial.............. 14,666 14,792 763 796 Professional specialty................................. 14,330 15,988 769 812 Technical, sales, and administrative support............. 28,258 27,749 477 485 Technicians and related support........................ 3,598 3,634 589 608 Sales occupations...................................... 9,941 9,860 498 515 Administrative support, including clerical............. 14,719 14,255 439 449 Service occupations...................................... 11,062 11,302 329 336 Private household...................................... 379 487 219 246 Protective service..................................... 2,210 2,191 576 587 Service, except private household and protective....... 8,472 8,624 309 313 Precision production, craft, and repair.................. 12,243 11,914 560 598 Mechanics and repairers................................ 4,322 4,383 590 622 Construction trades.................................... 4,228 4,043 528 560 Other precision production, craft, and repair.......... 3,693 3,488 546 605 Operators, fabricators, and laborers..................... 15,221 15,429 414 431 Machine operators, assemblers, and inspectors.......... 6,848 6,771 398 426 Transportation and material moving occupations......... 4,372 4,678 505 515 Handlers, equipment cleaners, helpers, and laborers.... 4,000 3,980 358 351 Farming, forestry, and fishing........................... 1,658 1,879 303 331 Men Managerial and professional specialty.................... 14,806 15,635 910 955 Executive, administrative, and managerial.............. 7,912 7,998 924 963 Professional specialty................................. 6,894 7,637 894 948 Technical, sales, and administrative support............. 10,781 10,664 602 620 Technicians and related support........................ 1,748 1,863 683 708 Sales occupations...................................... 5,533 5,491 614 683 Administrative support, including clerical............. 3,499 3,310 519 527 Service occupations...................................... 5,459 5,422 381 394 Private household...................................... 12 25 (1) (1) Protective service..................................... 1,889 1,804 603 614 Service, except private household and protective....... 3,557 3,593 331 331 Precision production, craft, and repair.................. 11,190 10,863 579 608 Mechanics and repairers................................ 4,164 4,182 592 621 Construction trades.................................... 4,136 3,941 533 566 Other precision production, craft, and repair.......... 2,890 2,740 607 651 Operators, fabricators, and laborers..................... 11,702 11,996 457 475 Machine operators, assemblers, and inspectors.......... 4,348 4,418 465 483 Transportation and material moving occupations......... 4,066 4,391 513 521 Handlers, equipment cleaners, helpers, and laborers.... 3,288 3,186 372 365 Farming, forestry, and fishing........................... 1,441 1,620 304 335 Women Managerial and professional specialty.................... 14,190 15,145 664 690 Executive, administrative, and managerial.............. 6,754 6,794 631 665 Professional specialty................................. 7,436 8,351 705 709 Technical, sales, and administrative support............. 17,477 17,085 419 430 Technicians and related support........................ 1,849 1,771 507 533 Sales occupations...................................... 4,408 4,370 362 385 Administrative support, including clerical............. 11,220 10,944 421 432 Service occupations...................................... 5,603 5,879 297 304 Private household...................................... 367 462 219 244 Protective service..................................... 321 388 445 488 Service, except private household and protective....... 4,915 5,030 296 304 Precision production, craft, and repair.................. 1,053 1,051 404 464 Mechanics and repairers................................ 158 202 510 677 Construction trades.................................... 92 101 (1) 436 Other precision production, craft, and repair.......... 803 748 393 435 Operators, fabricators, and laborers..................... 3,519 3,434 323 335 Machine operators, assemblers, and inspectors.......... 2,501 2,353 320 336 Transportation and material moving occupations......... 306 287 407 398 Handlers, equipment cleaners, helpers, and laborers.... 712 794 323 316 Farming, forestry, and fishing........................... 217 260 291 316 1 Data not shown where base is less than 100,000. Beginning in January 1999, 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 1999 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.................................. 99,052 $265 $363 $546 $827 $1,211 Men..................................................... 56,199 285 400 614 931 1,360 Women................................................... 42,853 246 323 474 698 993 White................................................... 81,874 270 373 569 851 1,240 Men................................................... 47,670 289 409 632 954 1,388 Women................................................. 34,204 249 330 483 710 1,004 Black................................................... 12,496 244 315 454 658 957 Men................................................... 5,972 256 344 492 699 982 Women................................................. 6,524 237 300 416 622 924 Hispanic................................................ 11,087 229 282 392 586 859 Men................................................... 6,841 237 296 410 619 927 Women................................................. 4,246 212 263 356 523 742 EDUCATIONAL ATTAINMENT Total, 25 years and over................................ 86,323 284 395 595 880 1,263 Less than a high school diploma....................... 8,288 219 265 348 497 689 High school graduates, no college..................... 27,109 266 352 495 704 945 Some college or associate degree...................... 24,286 302 404 576 794 1,089 College graduates, total.............................. 26,641 428 606 867 1,238 1,749 Bachelor's degree only.............................. 17,552 403 572 789 1,139 1,574 Advanced degree..................................... 9,089 525 729 1,013 1,435 1,968 Men, 25 years and over................................ 48,903 313 449 668 983 1,430 Less than a high school diploma..................... 5,454 235 292 395 554 744 High school graduates, no college................... 15,484 304 409 586 793 1,051 Some college or associate degree.................... 12,936 339 475 660 916 1,189 College graduates, total............................ 15,028 475 673 975 1,417 1,921 Bachelor's degree only............................ 9,763 438 626 912 1,294 1,856 Advanced degree................................... 5,266 578 797 1,148 1,588 2,281 Women, 25 years and over.............................. 37,421 258 346 500 735 1,037 Less than a high school diploma..................... 2,834 192 238 287 371 492 High school graduates, no college................... 11,624 236 301 409 558 740 Some college or associate degree.................... 11,349 281 362 486 664 887 College graduates, total............................ 11,613 397 546 746 1,029 1,374 Bachelor's degree only............................ 7,789 375 502 679 936 1,231 Advanced degree................................... 3,823 491 656 884 1,183 1,562 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 1999, 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 1998 1999 1998 1999 SEX AND AGE Total, 16 years and over.................................. 19,588 19,996 $161 $171 Men, 16 years and over................................. 6,101 6,135 153 162 16 to 24 years....................................... 3,352 3,383 130 137 25 years and over.................................... 2,749 2,752 203 209 Women, 16 years and over............................... 13,487 13,861 165 175 16 to 24 years....................................... 4,186 4,330 130 130 25 years and over.................................... 9,301 9,531 189 208 RACE, HISPANIC ORIGIN, AND SEX White.................................................. 16,774 17,316 162 171 Men.................................................. 5,055 5,222 154 162 Women................................................ 11,720 12,094 167 177 Black.................................................. 2,012 1,915 150 164 Men.................................................. 740 626 142 157 Women................................................ 1,271 1,289 155 167 Hispanic origin........................................ 1,756 1,793 154 161 Men.................................................. 626 711 164 180 Women................................................ 1,130 1,081 149 150 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 1999, data reflect revised population controls used in the household survey.