Technical information: (202) 691-6378 USDL 03-177 http://www.bls.gov/cps/ For release: 10:00 A.M. EDT Media contact: 691-5902 Thursday, April 17, 2003 USUAL WEEKLY EARNINGS OF WAGE AND SALARY WORKERS: FIRST QUARTER 2003 Median weekly earnings of the nation's 99.0 million full-time wage and salary workers were $620 in the first quarter of 2003, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This was 1.5 percent higher than a year earlier, compared with a gain of 2.8 percent in the Consumer Price Index for All Urban Consumers (CPI-U) over the same period. Data on usual earnings are collected as part of the Current Population Survey, a nationwide sample survey of households in which respondents are asked, among other things, how much each wage and salary worker usually earns. (See the Explanatory Note.) Highlights from the first-quarter data are: --Women who usually worked full time had median earnings of $551 per week, or 79.3 percent of the $695 median for men. The female-to-male earnings ratios were higher among blacks or African Americans (89.3 percent) and Hispanics or Latinos (88.3 percent) than among whites (79.0 percent) and Asians (78.2 percent). (See table 1.) --Median earnings for black men working at full-time jobs were $552 per week, 77.4 percent of the median for white men ($713). The difference was much less among women, as black women's median earnings ($493) were 87.6 per- cent of those for their white counterparts ($563). Overall, median earnings of Hispanics who worked full time ($447) were lower than those of blacks ($516), whites ($636), and Asians ($718). (See table 1.) --Among men, the highest median weekly earnings were for those age 45 to 54 and age 55 to 64 ($822 for each age group). Among women, earnings were highest for those 45 to 54 years old ($606). (See table 2.) --Among the major occupational groups, persons employed full time in managerial, professional, and related occupations had the highest median weekly earnings--$1,058 for men and $756 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 $397, compared with $549 for high school graduates (no college) and $961 for college graduates holding at least a bachelor's degree. Among college graduates with advanced degrees (professional or master's degree and above), the highest-earning 10 percent of male workers made $2,498 or more per week, compared with $1,856 or more for their female counterparts. (See table 4.) - 2 - ------------------------------------------------------------------- | Changes in Usual Weekly Earnings Data | | | | Several major changes introduced into the Current Population | | Survey in 2003 affect the usual weekly earnings data that are | | presented in this release. These include the use of new popu- | | lation controls that reflect Census 2000 results, the use of | | new questions about race and Hispanic ethnicity, the presentation | | of data for Asians, and the use of a new occupational classifica- | | tion system. Additionally, the first quarter 2003 data also | | reflect an additional upward adjustment to population controls | | and other changes to the survey. The first quarter 2002 data | | shown in this release have been revised to reflect the new | | population controls and the new occupational classification | | system introduced into the survey. (Data by race and Hispanic | | or Latino ethnicity prior to the first quarter of 2003 continue | | to be based on the old race/ethnicity questions.) For a detailed | | discussion of the changes, see "Revisions to the Current Popula- | | tion Survey Effective in January 2003" in the February 2003 issue | | of Employment and Earnings and available on the Internet at | | http://www.bls.gov/cps/rvcps03.pdf. | ------------------------------------------------------------------- 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. This refers to persons who identified themselves in the enumeration process as being Spanish, Hispanic, or Latino. Persons whose ethnicity is identified as Hispanic or Latino may be of any race and, therefore, are classified by ethnicity as well as by race. Table 1. Median usual weekly earnings of full-time wage and salary workers by selected characteristics, quarterly averages, not seasonally adjusted Number of workers Median weekly earnings (in thousands) Characteristic In current dollars In constant (1982) dollars I I 2002 2003 I I I I 2002 2003 2002 2003 SEX AND AGE Total, 16 years and over.................................. 98,809 98,988 $611 $620 $332 $327 Men, 16 years and over................................. 55,217 55,162 682 695 370 366 16 to 24 years....................................... 5,725 5,829 406 396 220 209 25 years and over.................................... 49,491 49,333 729 741 395 391 Women, 16 years and over............................... 43,592 43,826 533 551 289 291 16 to 24 years....................................... 4,509 4,266 375 384 203 202 25 years and over.................................... 39,083 39,560 570 581 309 306 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White(1)............................................... 81,543 80,878 625 636 339 336 Men.................................................. 46,549 46,184 701 713 380 376 Women................................................ 34,994 34,694 547 563 297 297 Black or African American(1)........................... 11,899 11,706 510 516 276 272 Men.................................................. 5,669 5,443 533 552 289 291 Women................................................ 6,230 6,263 492 493 267 260 Asian(1)............................................... 4,354 4,230 651 718 353 379 Men.................................................. 2,414 2,365 752 793 408 418 Women................................................ 1,939 1,865 558 620 303 327 Hispanic or Latino..................................... 12,861 13,653 420 447 228 236 Men.................................................. 8,047 8,611 452 471 245 249 Women................................................ 4,815 5,042 387 416 210 219 1 Beginning in 2003, persons who selected this race group only; persons who selected more than one race group are not included. Prior to 2003, persons who reported more than one race group were included in the group they indentified as the main race. 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. All data have been revised back to January 2000 to reflect the introduction of Census 2000-based population controls into the household survey. Beginning in January 2003, data also reflect an additional upward adjustment to population controls and other changes to the survey. Table 2. Median usual weekly earnings of full-time wage and salary workers by age, race, Hispanic or Latino ethnicity, and sex, first quarter 2003 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......................................... 98,988 $620 55,162 $695 43,826 $551 16 to 24 years.......................................... 10,095 391 5,829 396 4,266 384 16 to 19 years........................................ 1,236 312 743 321 494 298 20 to 24 years........................................ 8,858 402 5,086 409 3,773 393 25 years and over....................................... 88,893 659 49,333 741 39,560 581 25 to 54 years........................................ 75,888 657 42,308 734 33,580 583 25 to 34 years...................................... 24,512 599 14,046 641 10,466 549 35 to 44 years...................................... 27,172 677 15,369 766 11,803 590 45 to 54 years...................................... 24,204 718 12,893 822 11,312 606 55 years and over..................................... 13,005 672 7,025 791 5,980 567 55 to 64 years...................................... 11,237 697 5,988 822 5,249 586 65 years and over................................... 1,768 493 1,037 592 731 424 White(1) 16 years and over......................................... 80,878 636 46,184 713 34,694 563 16 to 24 years.......................................... 8,343 393 4,936 398 3,407 385 25 years and over....................................... 72,535 679 41,248 761 31,287 590 25 to 54 years........................................ 61,514 676 35,227 752 26,287 592 55 years and over..................................... 11,021 696 6,021 831 5,000 579 Black or African American(1) 16 years and over......................................... 11,706 516 5,443 552 6,263 493 16 to 24 years.......................................... 1,122 372 550 364 571 379 25 years and over....................................... 10,584 543 4,892 582 5,692 512 25 to 54 years........................................ 9,261 540 4,254 575 5,007 510 55 years and over..................................... 1,323 565 638 609 685 523 Asian(1) 16 years and over......................................... 4,230 718 2,365 793 1,865 620 16 to 24 years.......................................... 359 413 200 428 159 396 25 years and over....................................... 3,871 739 2,165 828 1,705 652 25 to 54 years........................................ 3,376 755 1,875 859 1,501 665 55 years and over..................................... 495 670 291 728 204 558 Hispanic or Latino 16 years and over......................................... 13,653 447 8,611 471 5,042 416 16 to 24 years.......................................... 2,205 339 1,489 337 716 344 25 years and over....................................... 11,448 481 7,122 501 4,326 430 25 to 54 years........................................ 10,501 482 6,539 500 3,962 436 55 years and over..................................... 947 473 583 516 364 401 1 Beginning in 2003, persons who selected this race group only; persons who selected more than one race group are not included. Prior to 2003, persons who reported more than one race group were included in the group they indentified as the main race. 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. All data have been revised back to January 2000 to reflect the introduction of Census 2000-based population controls into the household survey. Beginning in January 2003, data also reflect an additional upward adjustment to population controls and other changes to the survey. Table 3. Median usual weekly earnings of full-time wage and salary workers by occupation and sex, quarterly averages, not seasonally adjusted Number of workers Median weekly earnings (in thousands) Occupation and sex I I I I 2002 2003 2002 2003 TOTAL Managerial, professional, and related occupations........ 35,193 35,451 $856 $893 Management, business, and financial operations occupations........................................... 14,497 14,374 919 954 Professional and related occupations................... 20,696 21,077 820 854 Service occupations...................................... 12,749 13,327 389 407 Sales and office occupations............................. 24,872 24,625 527 541 Sales and related occupations.......................... 9,483 9,853 596 594 Office and administrative support occupations.......... 15,389 14,772 510 522 Natural resources, construction, and maintenance occupations............................................. 10,440 10,581 608 610 Farming, fishing, and forestry occupations............. 700 678 344 365 Construction and extraction occupations................ 5,650 5,561 592 601 Installation, maintenance, and repair occupations...... 4,090 4,342 670 668 Production, transportation, and material moving occupations............................................. 15,555 15,005 513 519 Production occupations................................. 9,079 8,493 514 524 Transportation and material moving occupations......... 6,476 6,511 512 513 Men Managerial, professional, and related occupations........ 17,559 17,569 1,017 1,058 Management, business, and financial operations occupations........................................... 8,085 7,936 1,090 1,140 Professional and related occupations................... 9,474 9,633 981 1,018 Service occupations...................................... 6,533 6,620 442 477 Sales and office occupations............................. 9,118 9,192 642 645 Sales and related occupations.......................... 5,279 5,416 716 703 Office and administrative support occupations.......... 3,839 3,776 573 583 Natural resources, construction, and maintenance occupations............................................. 9,972 10,116 613 615 Farming, fishing, and forestry occupations............. 512 541 355 376 Construction and extraction occupations................ 5,548 5,408 590 605 Installation, maintenance, and repair occupations...... 3,912 4,167 670 669 Production, transportation, and material moving occupations............................................. 12,035 11,665 560 563 Production occupations................................. 6,452 6,014 574 581 Transportation and material moving occupations......... 5,582 5,651 540 534 Women Managerial, professional, and related occupations........ 17,634 17,882 736 756 Management, business, and financial operations occupations........................................... 6,411 6,437 760 793 Professional and related occupations................... 11,222 11,444 721 740 Service occupations...................................... 6,216 6,707 344 366 Sales and office occupations............................. 15,754 15,432 486 503 Sales and related occupations.......................... 4,204 4,437 441 461 Office and administrative support occupations.......... 11,550 10,996 496 512 Natural resources, construction, and maintenance occupations............................................. 468 466 488 483 Farming, fishing, and forestry occupations............. 188 137 315 323 Construction and extraction occupations................ 102 153 620 480 Installation, maintenance, and repair occupations...... 178 175 639 631 Production, transportation, and material moving occupations............................................. 3,520 3,339 403 407 Production occupations................................. 2,627 2,479 409 411 Transportation and material moving occupations......... 894 860 383 397 NOTE: Occupations reflect the introduction of the 2002 Census occupational classification system derived from the 2000 Standard Occupational Classification system into the Current Population Survey. Data are based on Census 2000-based population controls. Beginning in January 2003, data also reflect an additional upward adjustment to population controls and other changes to the survey. Table 4. Quartiles and selected deciles of usual weekly earnings of full-time wage and salary workers by selected characteristics, first quarter 2003 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.................................. 98,988 $300 $414 $620 $945 $1,413 Men..................................................... 55,162 320 460 695 1,062 1,586 Women................................................... 43,826 283 381 551 803 1,139 White(1)................................................ 80,878 305 423 636 967 1,447 Men................................................... 46,184 324 475 713 1,089 1,637 Women................................................. 34,694 286 386 563 814 1,150 Black or African American(1)............................ 11,706 281 373 516 762 1,076 Men................................................... 5,443 296 393 552 809 1,156 Women................................................. 6,263 268 353 493 726 1,000 Asian(1)................................................ 4,230 299 423 718 1,121 1,694 Men................................................... 2,365 319 475 793 1,263 1,894 Women................................................. 1,865 285 396 620 918 1,344 Hispanic or Latino...................................... 13,653 258 318 447 675 991 Men................................................... 8,611 270 325 471 701 1,057 Women................................................. 5,042 245 307 416 615 902 EDUCATIONAL ATTAINMENT Total, 25 years and over................................ 88,893 316 445 659 988 1,464 Less than a high school diploma....................... 8,483 238 300 397 539 766 High school graduates, no college..................... 26,930 297 394 549 766 1,047 Some college or associate degree...................... 24,859 339 462 635 909 1,210 Bachelor's degree and higher.......................... 28,621 477 672 961 1,426 1,961 Bachelor's degree only.............................. 18,732 438 623 903 1,324 1,885 Advanced degree..................................... 9,889 580 774 1,104 1,614 2,226 Men, 25 years and over................................ 49,333 350 497 741 1,123 1,665 Less than a high school diploma..................... 5,617 263 320 431 597 815 High school graduates, no college................... 15,040 337 461 627 870 1,158 Some college or associate degree.................... 12,982 384 514 731 1,019 1,380 Bachelor's degree and higher........................ 15,694 522 767 1,129 1,654 2,301 Bachelor's degree only............................ 10,315 494 718 1,047 1,544 2,113 Advanced degree................................... 5,380 618 896 1,283 1,875 2,498 Women, 25 years and over.............................. 39,560 293 396 581 840 1,168 Less than a high school diploma..................... 2,866 208 270 338 444 593 High school graduates, no college................... 11,890 270 345 464 628 856 Some college or associate degree.................... 11,877 312 410 561 761 1,022 Bachelor's degree and higher........................ 12,927 427 607 819 1,134 1,562 Bachelor's degree only............................ 8,417 400 569 758 1,044 1,430 Advanced degree................................... 4,510 545 709 927 1,278 1,856 1 Beginning in 2003, persons who selected this race group only; persons who selected more than one race group are not included. Prior to 2003, persons who reported more than one race group were included in the group they indentified as the main race. 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. All data have been revised back to January 2000 to reflect the introduction of Census 2000-based population controls into the household survey. Beginning in January 2003, data also reflect an additional upward adjustment to population controls and other changes to the survey. Table 5. Median usual weekly earnings of part-time wage and salary workers by selected characteristics, quarterly averages, not seasonally adjusted Number of workers Median weekly earnings (in thousands) Characteristic I I I I 2002 2003 2002 2003 SEX AND AGE Total, 16 years and over.................................. 21,817 22,154 $179 $184 Men, 16 years and over................................. 6,971 6,988 171 172 16 to 24 years....................................... 3,681 3,557 143 137 25 years and over.................................... 3,289 3,431 219 225 Women, 16 years and over............................... 14,847 15,165 184 191 16 to 24 years....................................... 4,628 4,696 133 129 25 years and over.................................... 10,218 10,469 214 224 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White(1)............................................... 18,607 18,761 181 185 Men.................................................. 5,771 5,754 170 167 Women................................................ 12,837 13,007 186 193 Black or African American(1)........................... 2,032 2,050 168 178 Men.................................................. 735 762 168 192 Women................................................ 1,296 1,287 168 169 Asian(1)............................................... 960 804 186 202 Men.................................................. 372 298 170 206 Women................................................ 588 506 192 198 Hispanic or Latino..................................... 2,359 2,183 184 181 Men.................................................. 812 775 191 200 Women................................................ 1,547 1,408 180 171 1 Beginning in 2003, persons who selected this race group only; persons who selected more than one race group are not included. Prior to 2003, persons who reported more than one race group were included in the group they indentified as the main race. 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. All data have been revised back to January 2000 to reflect the introduction of Census 2000-based population controls into the household survey. Beginning in January 2003, data also reflect an additional upward adjustment to population controls and other changes to the survey.