Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 606-6378 USDL 99-197 For release: 10:00 A.M. EDT Media contact: 606-5902 Tuesday, July 20, 1999 USUAL WEEKLY EARNINGS OF WAGE AND SALARY WORKERS: SECOND QUARTER 1999 Median weekly earnings of the nation's 97.6 million full-time wage and salary workers were $543 in the second quarter of 1999, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This was 5.4 percent higher than a year earlier, compared with a gain of 2.1 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 $467 a week, or 75.7 percent of the $617 median for men. The female-to-male earnings ratios were higher among blacks (83.6 percent) and Hispanics (86.0 percent) than among whites (75.2 percent). (See table 1.) --Median earnings for black men working at full-time jobs were $481 per week, 75.4 percent of the median for white men ($638). The difference was much less among women, as black women's median earnings ($402) were 83.8 percent of those for their white counterparts ($480). Overall, median earnings of Hispanics who worked full time ($375) were lower than those of blacks ($432) and whites ($569). (See table 1.) --Among men, those in the 45- to 54-year age group had the highest median weekly earnings ($757), followed by 55- to 64-year-old men, with median earnings of $715. Among women, earnings also were highest for those 45-to-54 years old ($530), followed by 35- to 44-year olds, with a median of $502. (See table 2.) --Among the major occupational groups, persons employed full time in managerial and professional specialty occupations had the highest median weekly earnings--$943 for men and $675 for women--while men and women in farm jobs earned the least. (See table 3.) - 2 - --Full-time workers age 25 and over with less than a high school diploma had median weekly earnings of $345, compared with $489 for high school graduates (no college) and $851 for college graduates. Among college graduates with advanced degrees (professional or master's degree and above), the highest 10 percent of male workers earned $2,499 or more, compared with $1,522 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 II II 1998 1999 II II II II 1998 1999 1998 1999 SEX AND AGE Total, 16 years and over.................................. 95,548 97,585 $515 $543 $306 $315 Men, 16 years and over................................. 54,625 55,185 590 617 350 359 16 to 24 years....................................... 6,409 6,328 335 344 199 199 25 years and over.................................... 48,216 48,858 627 665 372 386 Women, 16 years and over............................... 40,923 42,400 446 467 264 271 16 to 24 years....................................... 4,866 4,902 305 316 181 183 25 years and over.................................... 36,057 37,498 474 494 281 287 RACE, HISPANIC ORIGIN, AND SEX White.................................................. 79,361 80,928 532 569 315 331 Men.................................................. 46,237 46,858 606 638 359 370 Women................................................ 33,124 34,070 458 480 271 279 Black.................................................. 11,827 12,116 420 432 249 251 Men.................................................. 5,890 5,822 471 481 279 280 Women................................................ 5,937 6,295 390 402 231 234 Hispanic origin........................................ 10,552 10,835 365 375 216 218 Men.................................................. 6,793 6,734 381 399 226 232 Women................................................ 3,759 4,101 333 343 198 199 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, second 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......................................... 97,585 $543 55,185 $617 42,400 $467 16 to 24 years.......................................... 11,229 329 6,328 344 4,902 316 16 to 19 years........................................ 2,122 272 1,290 277 832 265 20 to 24 years........................................ 9,107 350 5,038 368 4,069 330 25 years and over....................................... 86,356 590 48,858 665 37,498 494 25 to 54 years........................................ 76,160 590 43,105 663 33,054 496 25 to 34 years...................................... 25,344 513 14,585 573 10,759 466 35 to 44 years...................................... 28,812 612 16,556 706 12,256 502 45 to 54 years...................................... 22,004 642 11,964 757 10,040 530 55 years and over..................................... 10,196 587 5,752 685 4,444 475 55 to 64 years...................................... 8,926 605 5,020 715 3,906 491 65 years and over................................... 1,271 402 733 421 538 376 White 16 years and over......................................... 80,928 569 46,858 638 34,070 480 16 to 24 years.......................................... 9,447 332 5,506 347 3,941 317 25 years and over....................................... 71,481 606 41,352 689 30,129 506 25 to 54 years........................................ 62,665 607 36,311 687 26,353 508 55 years and over..................................... 8,816 600 5,040 710 3,776 488 Black 16 years and over......................................... 12,116 432 5,822 481 6,295 402 16 to 24 years.......................................... 1,339 304 585 311 754 298 25 years and over....................................... 10,777 461 5,236 504 5,540 419 25 to 54 years........................................ 9,819 461 4,787 503 5,031 421 55 years and over..................................... 958 468 449 520 509 403 Hispanic origin 16 years and over......................................... 10,835 375 6,734 399 4,101 343 16 to 24 years.......................................... 1,809 293 1,148 293 661 293 25 years and over....................................... 9,026 405 5,586 433 3,440 363 25 to 54 years........................................ 8,222 410 5,092 438 3,130 366 55 years and over..................................... 804 360 494 370 310 344 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 II II II II 1998 1999 1998 1999 TOTAL Managerial and professional specialty.................... 29,076 30,475 $746 $790 Executive, administrative, and managerial.............. 14,079 14,986 748 793 Professional specialty................................. 14,997 15,489 745 788 Technical, sales, and administrative support............. 27,404 27,691 473 488 Technicians and related support........................ 3,666 3,466 602 620 Sales occupations...................................... 9,586 9,877 494 524 Administrative support, including clerical............. 14,151 14,348 436 446 Service occupations...................................... 10,421 10,817 330 333 Private household...................................... 352 345 229 204 Protective service..................................... 2,082 2,139 603 589 Service, except private household and protective....... 7,987 8,334 312 312 Precision production, craft, and repair.................. 11,740 12,011 572 583 Mechanics and repairers................................ 4,070 4,289 596 611 Construction trades.................................... 4,150 4,163 543 559 Other precision production, craft, and repair.......... 3,520 3,559 562 562 Operators, fabricators, and laborers..................... 15,194 15,003 412 422 Machine operators, assemblers, and inspectors.......... 7,056 6,724 401 416 Transportation and material moving occupations......... 4,338 4,168 511 514 Handlers, equipment cleaners, helpers, and laborers.... 3,800 4,111 348 365 Farming, forestry, and fishing........................... 1,714 1,588 302 328 Men Managerial and professional specialty.................... 14,863 15,513 888 943 Executive, administrative, and managerial.............. 7,577 8,051 903 954 Professional specialty................................. 7,286 7,462 876 929 Technical, sales, and administrative support............. 10,405 10,697 603 631 Technicians and related support........................ 1,893 1,859 686 751 Sales occupations...................................... 5,245 5,550 625 666 Administrative support, including clerical............. 3,266 3,288 507 546 Service occupations...................................... 5,222 5,101 392 400 Private household...................................... 19 20 (1) (1) Protective service..................................... 1,784 1,800 $623 $611 Service, except private household and protective....... 3,419 3,280 336 328 Precision production, craft, and repair.................. 10,894 10,901 586 598 Mechanics and repairers................................ 3,918 4,065 601 614 Construction trades.................................... 4,116 4,068 543 562 Other precision production, craft, and repair.......... 2,860 2,768 609 613 Operators, fabricators, and laborers..................... 11,744 11,606 450 473 Machine operators, assemblers, and inspectors.......... 4,499 4,343 460 484 Transportation and material moving occupations......... 4,000 3,895 519 526 Handlers, equipment cleaners, helpers, and laborers.... 3,245 3,368 359 382 Farming, forestry, and fishing........................... 1,498 1,367 306 335 Women Managerial and professional specialty.................... 14,212 14,962 640 675 Executive, administrative, and managerial.............. 6,501 6,935 613 659 Professional specialty................................. 7,711 8,027 660 690 Technical, sales, and administrative support............. 16,999 16,994 417 430 Technicians and related support........................ 1,773 1,607 506 516 Sales occupations...................................... 4,341 4,327 365 403 Administrative support, including clerical............. 10,885 11,060 418 426 Service occupations...................................... 5,199 5,716 300 305 Private household...................................... 333 324 225 199 Protective service..................................... 298 339 416 490 Service, except private household and protective....... 4,569 5,053 299 304 Precision production, craft, and repair.................. 847 1,110 389 410 Mechanics and repairers................................ 152 224 473 526 Construction trades.................................... 34 95 (1) (1) Other precision production, craft, and repair.......... 660 791 $371 $385 Operators, fabricators, and laborers..................... 3,450 3,397 324 332 Machine operators, assemblers, and inspectors.......... 2,558 2,381 327 338 Transportation and material moving occupations......... 339 273 393 352 Handlers, equipment cleaners, helpers, and laborers.... 554 743 294 318 Farming, forestry, and fishing........................... 215 221 266 300 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, second 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.................................. 97,585 $266 $359 $543 $821 $1,200 Men..................................................... 55,185 288 402 617 929 1,368 Women................................................... 42,400 245 319 467 685 971 White................................................... 80,928 272 371 569 846 1,245 Men................................................... 46,858 293 414 638 953 1,412 Women................................................. 34,070 248 326 480 700 985 Black................................................... 12,116 239 306 432 650 934 Men................................................... 5,822 256 325 481 725 993 Women................................................. 6,295 228 291 402 599 875 Hispanic................................................ 10,835 227 277 375 589 861 Men................................................... 6,734 237 289 399 608 939 Women................................................. 4,101 205 258 343 536 758 EDUCATIONAL ATTAINMENT Total, 25 years and over................................ 86,356 284 390 590 867 1,255 Less than a high school diploma....................... 8,643 216 265 345 496 690 High school graduates, no college..................... 27,897 270 347 489 690 937 Some college or associate degree...................... 23,323 299 403 581 797 1,069 College graduates, total.............................. 26,493 425 605 851 1,242 1,772 Bachelor's degree only.............................. 17,740 401 576 781 1,145 1,590 Advanced degree..................................... 8,753 508 707 978 1,433 1,946 Men, 25 years and over................................ 48,858 312 446 665 974 1,429 Less than a high school diploma..................... 5,570 235 290 392 551 767 High school graduates, no college................... 15,738 303 405 576 779 1,019 Some college or associate degree.................... 12,561 335 470 663 915 1,200 College graduates, total............................ 14,989 486 682 968 1,435 1,980 Bachelor's degree only............................ 9,988 456 637 898 1,327 1,881 Advanced degree................................... 5,001 580 793 1,142 1,662 2,499 Women, 25 years and over.............................. 37,498 257 339 494 721 1,008 Less than a high school diploma..................... 3,073 191 238 292 383 509 High school graduates, no college................... 12,159 240 303 402 551 740 Some college or associate degree.................... 10,761 277 358 485 660 870 College graduates, total............................ 11,505 389 537 733 1,003 1,359 Bachelor's degree only............................ 7,752 364 499 677 942 1,253 Advanced degree................................... 3,752 462 624 855 1,140 1,522 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 II II II II 1998 1999 1998 1999 SEX AND AGE Total, 16 years and over.................................. 20,832 20,964 $156 $161 Men, 16 years and over................................. 6,367 6,716 146 151 16 to 24 years....................................... 3,607 3,807 122 121 25 years and over.................................... 2,759 2,909 192 210 Women, 16 years and over............................... 14,466 14,248 160 166 16 to 24 years....................................... 4,355 4,648 115 122 25 years and over.................................... 10,111 9,600 190 199 RACE, HISPANIC ORIGIN, AND SEX White.................................................. 17,813 17,832 156 162 Men.................................................. 5,386 5,633 145 150 Women................................................ 12,427 12,199 162 167 Black.................................................. 2,035 2,231 152 156 Men.................................................. 618 782 153 151 Women................................................ 1,417 1,449 151 159 Hispanic origin........................................ 1,936 1,874 145 158 Men.................................................. 637 679 148 158 Women................................................ 1,299 1,194 144 158 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.