Technical information: (202) 691-6378 USDL 04-2167 http://www.bls.gov/cps/ For release: 10:00 A.M. EDT Media contact: 691-5902 Wednesday, October 20, 2004 USUAL WEEKLY EARNINGS OF WAGE AND SALARY WORKERS: THIRD QUARTER 2004 Median weekly earnings of the nation's 102.3 million full-time wage and salary workers were $632 in the third 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 2.7 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 $571 per week, or 81.1 percent of the $704 median for men. The female-to-male earnings ratios were higher among Hispanics or Latinos (90.1 percent) and blacks (89.1 percent) than among whites (80.9 percent) or Asians (73.5 percent). (See table 1.) Median earnings for black men working at full-time jobs were $570 per week, 79.1 percent of the median for white men ($721). The difference was less among women, as black women's median earnings ($508) were 87.1 percent of those for their white counterparts ($583). Overall, median earnings of Hispanics or Latinos who worked full time ($458) were lower than those of blacks ($531), whites ($651), and Asians ($701). (See table 1.) Among men, those age 45 to 54 and age 55 to 64 had the highest median weekly earnings, $859 and $828, respectively. Among women, earnings also were highest for these two age groups--$629 for 45- to 54-year olds and $607 for 55- to 64-year olds. (See table 2.) Among the major occupational groups, persons employed full time in mana- gerial, professional, and related occupations had the highest median weekly earnings--$1,111 for men and $776 for women. Men and women in service jobs earned the least. (See table 3.) Full-time workers age 25 and over without a high school diploma had median weekly earnings of $399, compared with $574 for high school grad- uates (no college) and $984 for college graduates holding at least a bach- elor's degree. Among college graduates with advanced degrees (profession- al or master's degree and above), the highest-earning 10 percent of male workers made $2,881 or more per week, compared with $1,890 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 III III 2003 2004 III III III III 2003 2004 2003 2004 SEX AND AGE Total, 16 years and over.................................. 101,372 102,325 $618 $632 $323 $322 Men, 16 years and over................................. 57,175 57,898 689 704 360 358 16 to 24 years....................................... 6,746 6,865 396 400 207 204 25 years and over.................................... 50,429 51,033 742 759 388 386 Women, 16 years and over............................... 44,197 44,427 550 571 288 291 16 to 24 years....................................... 5,018 5,083 366 371 191 189 25 years and over.................................... 39,180 39,344 585 602 306 306 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White.................................................. 82,828 83,367 633 651 331 331 Men.................................................. 47,815 48,172 708 721 370 367 Women................................................ 35,012 35,195 569 583 297 297 Black or African American.............................. 11,984 12,136 509 531 266 270 Men.................................................. 5,654 5,757 568 570 297 290 Women................................................ 6,330 6,379 478 508 250 258 Asian.................................................. 4,382 4,408 692 701 362 357 Men.................................................. 2,500 2,581 762 801 399 408 Women................................................ 1,882 1,827 592 589 310 300 Hispanic or Latino..................................... 13,805 14,263 444 458 232 233 Men.................................................. 8,761 9,155 463 477 242 243 Women................................................ 5,044 5,108 414 430 216 219 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, third 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......................................... 102,325 $632 57,898 $704 44,427 $571 16 to 24 years.......................................... 11,948 387 6,865 400 5,083 371 16 to 19 years........................................ 2,159 300 1,336 310 823 279 20 to 24 years........................................ 9,789 410 5,529 431 4,260 390 25 years and over....................................... 90,377 681 51,033 759 39,344 602 25 to 54 years........................................ 76,721 680 43,519 753 33,203 603 25 to 34 years...................................... 25,016 610 14,584 643 10,432 575 35 to 44 years...................................... 26,780 708 15,387 802 11,393 607 45 to 54 years...................................... 24,925 740 13,547 859 11,377 629 55 years and over..................................... 13,656 689 7,515 800 6,141 596 55 to 64 years...................................... 11,874 711 6,478 828 5,395 607 65 years and over................................... 1,782 575 1,036 623 746 484 White 16 years and over......................................... 83,367 651 48,172 721 35,195 583 16 to 24 years.......................................... 9,843 389 5,811 403 4,032 371 25 years and over....................................... 73,524 701 42,361 781 31,163 613 25 to 54 years........................................ 61,864 699 35,867 774 25,997 613 55 years and over..................................... 11,660 714 6,494 832 5,166 612 Black or African American 16 years and over......................................... 12,136 531 5,757 570 6,379 508 16 to 24 years.......................................... 1,311 374 630 380 682 366 25 years and over....................................... 10,824 567 5,127 599 5,697 524 25 to 54 years........................................ 9,543 575 4,526 602 5,017 536 55 years and over..................................... 1,282 515 601 573 680 482 Asian 16 years and over......................................... 4,408 701 2,581 801 1,827 589 16 to 24 years.......................................... 420 414 201 501 219 392 25 years and over....................................... 3,987 743 2,379 848 1,608 615 25 to 54 years........................................ 3,511 753 2,094 855 1,417 627 55 years and over..................................... 476 696 286 798 190 524 Hispanic or Latino 16 years and over......................................... 14,263 458 9,155 477 5,108 430 16 to 24 years.......................................... 2,263 328 1,524 329 739 325 25 years and over....................................... 12,000 488 7,631 502 4,369 456 25 to 54 years........................................ 10,909 487 6,980 501 3,929 455 55 years and over..................................... 1,091 502 652 528 440 463 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 III III III III 2003 2004 2003 2004 TOTAL Managerial, professional, and related occupations........ 35,663 35,684 $883 $916 Management, business, and financial operations occupations........................................... 14,388 14,421 951 958 Professional and related occupations................... 21,276 21,263 840 886 Service occupations...................................... 13,996 14,188 400 411 Sales and office occupations............................. 25,199 25,399 544 566 Sales and related occupations.......................... 10,003 10,056 598 598 Office and administrative support occupations.......... 15,196 15,343 524 549 Natural resources, construction, and maintenance occupations............................................. 11,344 11,680 600 613 Farming, fishing, and forestry occupations............. 783 777 398 363 Construction and extraction occupations................ 6,378 6,635 586 602 Installation, maintenance, and repair occupations...... 4,182 4,268 679 693 Production, transportation, and material moving occupations............................................. 15,170 15,375 527 520 Production occupations................................. 8,790 8,561 526 519 Transportation and material moving occupations......... 6,380 6,814 529 521 Men Managerial, professional, and related occupations........ 17,799 17,719 1,056 1,111 Management, business, and financial operations occupations........................................... 8,070 7,926 1,112 1,169 Professional and related occupations................... 9,728 9,793 1,018 1,051 Service occupations...................................... 7,112 7,188 451 470 Sales and office occupations............................. 9,583 9,691 647 668 Sales and related occupations.......................... 5,653 5,701 728 733 Office and administrative support occupations.......... 3,930 3,990 571 606 Natural resources, construction, and maintenance occupations............................................. 10,870 11,247 604 618 Farming, fishing, and forestry occupations............. 648 655 408 366 Construction and extraction occupations................ 6,224 6,523 587 603 Installation, maintenance, and repair occupations...... 3,998 4,068 681 699 Production, transportation, and material moving occupations............................................. 11,811 12,054 579 575 Production occupations................................. 6,210 6,058 595 591 Transportation and material moving occupations......... 5,601 5,995 549 548 Women Managerial, professional, and related occupations........ 17,865 17,965 755 776 Management, business, and financial operations occupations........................................... 6,317 6,494 808 799 Professional and related occupations................... 11,547 11,470 731 767 Service occupations...................................... 6,883 7,001 361 382 Sales and office occupations............................. 15,616 15,708 501 516 Sales and related occupations.......................... 4,350 4,355 428 456 Office and administrative support occupations.......... 11,266 11,354 516 533 Natural resources, construction, and maintenance occupations............................................. 474 433 488 434 Farming, fishing, and forestry occupations............. 135 121 327 357 Construction and extraction occupations................ 154 112 510 569 Installation, maintenance, and repair occupations...... 185 199 639 506 Production, transportation, and material moving occupations............................................. 3,359 3,321 414 398 Production occupations................................. 2,579 2,502 400 394 Transportation and material moving occupations......... 780 819 477 406 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, third 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.................................. 102,325 $303 $419 $632 $970 $1,461 Men..................................................... 57,898 319 463 704 1,089 1,641 Women................................................... 44,427 287 388 571 831 1,183 White................................................... 83,367 307 429 651 990 1,489 Men................................................... 48,172 323 478 721 1,119 1,668 Women................................................. 35,195 290 393 583 845 1,208 Black or African American............................... 12,136 285 379 531 773 1,122 Men................................................... 5,757 297 393 570 832 1,214 Women................................................. 6,379 278 365 508 729 1,033 Asian................................................... 4,408 316 428 701 1,143 1,757 Men................................................... 2,581 338 495 801 1,356 1,908 Women................................................. 1,827 292 384 589 925 1,339 Hispanic or Latino...................................... 14,263 267 322 458 685 1,017 Men................................................... 9,155 277 332 477 695 1,055 Women................................................. 5,108 251 310 430 661 962 EDUCATIONAL ATTAINMENT Total, 25 years and over................................ 90,377 325 462 681 1,019 1,527 Less than a high school diploma....................... 8,484 249 305 399 540 771 High school graduates, no college(1).................. 27,171 307 409 574 792 1,097 Some college or associate degree...................... 25,322 344 478 661 935 1,283 Bachelor's degree and higher(2)....................... 29,400 492 689 984 1,469 2,018 Bachelor's degree only.............................. 19,437 462 636 908 1,344 1,889 Advanced degree..................................... 9,963 606 823 1,159 1,735 2,392 Men, 25 years and over................................ 51,033 357 506 759 1,153 1,735 Less than a high school diploma..................... 5,709 275 330 442 603 865 High school graduates, no college(1)................ 15,770 339 459 634 899 1,219 Some college or associate degree.................... 13,195 390 547 763 1,072 1,476 Bachelor's degree and higher(2)..................... 16,360 537 766 1,136 1,694 2,310 Bachelor's degree only............................ 10,791 500 715 1,024 1,538 2,078 Advanced degree................................... 5,568 649 934 1,380 1,904 2,881 Women, 25 years and over.............................. 39,344 301 412 602 873 1,232 Less than a high school diploma..................... 2,775 227 275 334 421 541 High school graduates, no college(1)................ 11,401 283 367 491 660 885 Some college or associate degree.................... 12,127 317 417 580 777 1,039 Bachelor's degree and higher(2)..................... 13,040 458 625 859 1,186 1,645 Bachelor's degree only............................ 8,646 429 588 790 1,100 1,495 Advanced degree................................... 4,394 575 735 983 1,378 1,890 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 III III III III 2003 2004 2003 2004 SEX AND AGE Total, 16 years and over.................................. 20,907 21,403 $199 $199 Men, 16 years and over................................. 6,428 6,774 189 190 16 to 24 years....................................... 3,295 3,407 153 159 25 years and over.................................... 3,134 3,367 241 232 Women, 16 years and over............................... 14,478 14,629 205 203 16 to 24 years....................................... 4,457 4,423 153 152 25 years and over.................................... 10,022 10,206 235 236 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White.................................................. 17,637 18,038 200 200 Men.................................................. 5,369 5,629 190 186 Women................................................ 12,268 12,408 205 206 Black or African American.............................. 1,954 2,026 187 189 Men.................................................. 651 702 178 191 Women................................................ 1,302 1,324 191 188 Asian.................................................. 807 842 227 217 Men.................................................. 219 275 173 231 Women................................................ 588 567 251 206 Hispanic or Latino..................................... 2,365 2,416 195 189 Men.................................................. 830 808 200 192 Women................................................ 1,535 1,607 193 187 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.