Technical information: (202) 691-6378 USDL 07-0560 http://www.bls.gov/cps/ For release: 10:00 A.M. EDT Media contact: 691-5902 Wednesday, April 18, 2007 USUAL WEEKLY EARNINGS OF WAGE AND SALARY WORKERS: FIRST QUARTER 2007 Median weekly earnings of the nation’s 105.9 million full-time wage and salary workers were $693 in the first quarter of 2007, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This was 3.7 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 Technical Note.) Highlights from the first-quarter data are: --Women who usually worked full time had median earnings of $615 per week, or 81.0 percent of the $759 median for men. The female-to-male earnings ratios were higher among blacks (92.3 percent), Hispanics or Latinos (90.6 percent), and Asians (86.0 percent) than among whites (79.8 percent). (See table 1.) --Median earnings for black men working at full-time jobs were $585 per week, 74.7 percent of the median for white men ($783). The difference was less among women, as black women’s median earnings ($540) were 86.4 percent of those for their white counterparts ($625). Overall, median earnings of Hispanics or Latinos who worked full time ($502) were lower than those of blacks ($561), whites ($714), and Asians ($798). (See table 1.) --Among men, those age 55 to 64 years old had the highest median weekly earnings ($933). Among women, earnings were highest for those age 55 to 64 ($685) and age 45 to 54 ($680). (See table 2.) --Among the major occupational groups, persons employed full time in managerial, professional, and related occupations had the highest median weekly earnings--$1,162 for men and $846 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 $429, compared with $602 for high school graduates (no college) and $1,030 for those holding at least a bache- lor's degree. Among college graduates with advanced degrees (profes- sional or master’s degree and above), the highest earning 10 percent of male workers made $2,924 or more per week, compared with $1,980 or more for their female counterparts. (See table 4.) - 2 - Technical 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. - 3 - 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. 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 I I 2006 2007 I I I I 2006 2007 2006 2007 SEX AND AGE Total, 16 years and over.................................. 103,469 105,888 $668 $693 $324 $328 Men, 16 years and over................................. 57,950 59,052 744 759 361 359 16 to 24 years....................................... 5,886 6,102 417 451 202 214 25 years and over.................................... 52,065 52,951 793 811 385 384 Women, 16 years and over............................... 45,519 46,836 600 615 291 291 16 to 24 years....................................... 4,492 4,632 388 414 188 196 25 years and over.................................... 41,027 42,203 624 646 303 306 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White.................................................. 83,710 85,359 688 714 334 338 Men.................................................. 48,039 48,802 763 783 370 371 Women................................................ 35,670 36,557 607 625 295 296 Black or African American.............................. 12,536 13,007 560 561 272 266 Men.................................................. 5,920 6,135 577 585 280 277 Women................................................ 6,616 6,872 542 540 263 256 Asian.................................................. 4,849 5,146 766 798 371 378 Men.................................................. 2,695 2,845 932 864 452 409 Women................................................ 2,154 2,301 663 743 322 352 Hispanic or Latino ethnicity........................... 15,285 16,037 487 502 237 238 Men.................................................. 9,701 10,092 506 520 246 246 Women................................................ 5,584 5,946 438 471 213 223 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 2007, 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, first quarter 2007 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......................................... 105,888 $693 59,052 $759 46,836 $615 16 to 24 years.......................................... 10,734 430 6,102 451 4,632 414 16 to 19 years........................................ 1,405 357 839 384 566 324 20 to 24 years........................................ 9,330 453 5,263 475 4,067 431 25 years and over....................................... 95,154 733 52,951 811 42,203 646 25 to 54 years........................................ 79,065 726 44,297 795 34,768 645 25 to 34 years...................................... 25,323 646 14,467 688 10,856 607 35 to 44 years...................................... 27,088 757 15,456 865 11,632 659 45 to 54 years...................................... 26,654 777 14,374 884 12,281 680 55 years and over..................................... 16,089 767 8,654 901 7,435 654 55 to 64 years...................................... 13,895 802 7,341 933 6,554 685 65 years and over................................... 2,194 575 1,312 655 882 503 White 16 years and over......................................... 85,359 714 48,802 783 36,557 625 16 to 24 years.......................................... 8,774 432 5,104 457 3,670 412 25 years and over....................................... 76,585 754 43,699 843 32,886 664 25 to 54 years........................................ 62,931 748 36,225 826 26,706 662 55 years and over..................................... 13,654 799 7,474 936 6,181 673 Black or African American 16 years and over......................................... 13,007 561 6,135 585 6,872 540 16 to 24 years.......................................... 1,336 402 680 404 656 398 25 years and over....................................... 11,672 587 5,455 614 6,216 563 25 to 54 years........................................ 10,136 586 4,766 613 5,370 560 55 years and over..................................... 1,536 591 689 624 847 575 Asian 16 years and over......................................... 5,146 798 2,845 864 2,301 743 16 to 24 years.......................................... 302 574 146 578 156 570 25 years and over....................................... 4,844 827 2,698 896 2,145 757 25 to 54 years........................................ 4,192 836 2,334 898 1,858 763 55 years and over..................................... 652 767 364 856 288 689 Hispanic or Latino ethnicity 16 years and over......................................... 16,037 502 10,092 520 5,946 471 16 to 24 years.......................................... 2,416 393 1,569 403 847 367 25 years and over....................................... 13,622 525 8,523 565 5,099 494 25 to 54 years........................................ 12,263 530 7,710 566 4,553 496 55 years and over..................................... 1,359 505 812 530 546 472 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 2007, 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 I I I I 2006 2007 2006 2007 TOTAL Management, professional, and related occupations.............. 37,912 39,139 $954 $976 Management, business, and financial operations occupations... 15,591 16,389 1,029 1,042 Professional and related occupations......................... 22,321 22,750 911 936 Service occupations............................................ 13,981 14,050 419 451 Sales and office occupations................................... 25,048 25,748 588 597 Sales and related occupations................................ 10,005 10,717 635 645 Office and administrative support occupations................ 15,043 15,031 565 577 Natural resources, construction, and maintenance occupations... 11,739 12,180 650 672 Farming, fishing, and forestry occupations................... 611 657 405 341 Construction and extraction occupations...................... 6,813 7,164 618 659 Installation, maintenance, and repair occupations............ 4,315 4,359 746 730 Production, transportation, and material moving occupations.... 14,790 14,772 552 563 Production occupations....................................... 8,252 7,933 545 568 Transportation and material moving occupations............... 6,538 6,839 562 558 Men Management, professional, and related occupations.............. 18,683 18,855 1,160 1,162 Management, business, and financial operations occupations... 8,591 8,829 1,242 1,244 Professional and related occupations......................... 10,092 10,026 1,119 1,135 Service occupations............................................ 6,963 7,054 500 516 Sales and office occupations................................... 9,379 9,946 696 715 Sales and related occupations................................ 5,631 6,025 758 769 Office and administrative support occupations................ 3,748 3,921 620 635 Natural resources, construction, and maintenance occupations... 11,287 11,741 656 677 Farming, fishing, and forestry occupations................... 515 548 422 340 Construction and extraction occupations...................... 6,641 7,028 618 662 Installation, maintenance, and repair occupations............ 4,131 4,165 750 732 Production, transportation, and material moving occupations.... 11,639 11,457 591 606 Production occupations....................................... 5,904 5,627 601 630 Transportation and material moving occupations............... 5,735 5,830 580 584 Women Management, professional, and related occupations.............. 19,229 20,284 816 846 Management, business, and financial operations occupations... 7,000 7,561 851 872 Professional and related occupations......................... 12,229 12,724 795 832 Service occupations............................................ 7,019 6,996 382 395 Sales and office occupations................................... 15,669 15,802 532 539 Sales and related occupations................................ 4,373 4,692 492 494 Office and administrative support occupations................ 11,296 11,110 546 557 Natural resources, construction, and maintenance occupations... 452 439 514 512 Farming, fishing, and forestry occupations................... 96 109 (1) 346 Construction and extraction occupations...................... 172 136 588 497 Installation, maintenance, and repair occupations............ 184 194 653 708 Production, transportation, and material moving occupations.... 3,151 3,315 426 431 Production occupations....................................... 2,348 2,306 423 434 Transportation and material moving occupations............... 803 1,009 436 423 1 Data not shown where base is less than 100,000. NOTE: Beginning in January 2007, 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, first quarter 2007 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.................................. 105,888 $327 $462 $693 $1,055 $1,585 Men..................................................... 59,052 358 500 759 1,176 1,832 Women................................................... 46,836 304 416 615 926 1,328 White................................................... 85,359 336 477 714 1,087 1,629 Men................................................... 48,802 371 515 783 1,214 1,869 Women................................................. 36,557 308 422 625 938 1,338 Black or African American............................... 13,007 297 392 561 828 1,210 Men................................................... 6,135 307 406 585 874 1,257 Women................................................. 6,872 290 377 540 782 1,175 Asian................................................... 5,146 349 501 798 1,325 1,896 Men................................................... 2,845 366 518 864 1,487 2,114 Women................................................. 2,301 335 484 743 1,111 1,591 Hispanic or Latino ethnicity............................ 16,037 285 359 502 756 1,134 Men................................................... 10,092 296 381 520 781 1,164 Women................................................. 5,946 266 322 471 707 1,052 EDUCATIONAL ATTAINMENT Total, 25 years and over................................ 95,154 346 491 733 1,123 1,651 Less than a high school diploma....................... 9,017 269 327 429 607 833 High school graduates, no college(1).................. 27,686 316 425 602 866 1,182 Some college or associate degree...................... 25,457 364 497 710 1,006 1,403 Bachelor's degree and higher (2)...................... 32,994 509 724 1,030 1,549 2,215 Bachelor's degree only.............................. 21,649 486 671 956 1,419 1,978 Advanced degree..................................... 11,344 613 843 1,206 1,831 2,521 Men, 25 years and over................................ 52,951 383 539 811 1,244 1,882 Less than a high school diploma..................... 6,082 289 363 480 659 890 High school graduates, no college(1)................ 15,898 362 491 684 972 1,305 Some college or associate degree.................... 13,384 408 583 806 1,157 1,547 Bachelor's degree and higher (2).................... 17,586 577 807 1,200 1,838 2,508 Bachelor's degree only............................ 11,548 523 750 1,108 1,647 2,296 Advanced degree................................... 6,039 663 941 1,429 2,078 2,924 Women, 25 years and over.............................. 42,203 315 440 646 958 1,370 Less than a high school diploma..................... 2,935 233 290 368 491 684 High school graduates, no college(1)................ 11,787 290 379 511 708 964 Some college or associate degree.................... 12,073 326 442 612 863 1,154 Bachelor's degree and higher (2).................... 15,407 481 652 908 1,263 1,753 Bachelor's degree only............................ 10,102 447 608 842 1,171 1,602 Advanced degree................................... 5,305 587 762 1,043 1,449 1,980 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 2007, 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 I I I I 2006 2007 2006 2007 SEX AND AGE Total, 16 years and over.................................. 22,375 22,369 $200 $211 Men, 16 years and over................................. 7,241 7,172 188 199 16 to 24 years....................................... 3,731 3,572 147 150 25 years and over.................................... 3,509 3,600 253 273 Women, 16 years and over............................... 15,134 15,197 208 216 16 to 24 years....................................... 4,572 4,637 136 152 25 years and over.................................... 10,562 10,560 250 259 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White.................................................. 19,044 18,896 204 211 Men.................................................. 6,099 5,987 191 198 Women................................................ 12,944 12,909 211 217 Black or African American.............................. 2,032 2,071 173 206 Men.................................................. 692 685 170 199 Women................................................ 1,340 1,386 175 209 Asian.................................................. 783 815 219 237 Men.................................................. 248 281 205 233 Women................................................ 535 534 225 240 Hispanic or Latino ethnicity........................... 2,590 2,581 197 203 Men.................................................. 1,042 954 195 221 Women................................................ 1,548 1,627 198 195 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 2007, data reflect revised population controls used in the household survey.