Technical information: (202) 691-6378 USDL 03-379 http://www.bls.gov/cps/ For release: 10:00 A.M. EDT Media contact: 691-5902 Thursday, July 17, 2003 USUAL WEEKLY EARNINGS OF WAGE AND SALARY WORKERS: SECOND QUARTER 2003 Median weekly earnings of the nation's 100.4 million full-time wage and salary workers were $616 in the second quarter of 2003, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This was 1.8 percent higher than a year earlier, compared with a gain of 2.2 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 $547 per week, or 79.0 percent of the $692 median for men. The female-to-male earnings ratios were higher among blacks (90.6 percent) and Hispanics (87.5 percent) than among whites (78.8 percent) or Asians (79.8 percent). (See table 1.) --Median earnings for black men working at full-time jobs were $540 per week, 75.8 percent of the median for white men ($712). The difference was much less among women, as black women's median earnings ($489) were 87.2 per- cent of those for their white counterparts ($561). Overall, median earnings of Hispanics who worked full time ($430) were lower than those of blacks ($509), whites ($631), and Asians ($678). (See table 1.) --Among men, the highest median weekly earnings were for those age 45 to 54 ($854). Among women, the age groups with the highest earnings were 45 to 54 years ($603) and 55 to 64 years ($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--$1,048 for men and $753 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 $394, compared with $547 for high school graduates (no college) and $969 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 $2,698 or more per week, compared with $1,794 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. 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 II II 2002 2003 II II II II 2002 2003 2002 2003 SEX AND AGE Total, 16 years and over.................................. 100,482 100,442 $605 $616 $325 $323 Men, 16 years and over................................. 56,730 56,111 677 692 364 363 16 to 24 years....................................... 6,403 6,206 398 391 214 205 25 years and over.................................... 50,327 49,905 732 743 393 390 Women, 16 years and over............................... 43,752 44,332 520 547 279 287 16 to 24 years....................................... 4,955 4,835 355 366 191 192 25 years and over.................................... 38,797 39,497 559 582 300 306 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White(1)............................................... 82,529 82,145 622 631 334 331 Men.................................................. 47,794 47,028 703 712 377 374 Women................................................ 34,735 35,117 534 561 287 295 Black or African American(1)........................... 12,172 11,879 500 509 269 267 Men.................................................. 5,819 5,471 532 540 285 284 Women................................................ 6,353 6,408 469 489 252 257 Asian(1)............................................... 4,657 4,242 648 678 348 356 Men.................................................. 2,501 2,414 756 759 406 399 Women................................................ 2,155 1,828 552 606 296 318 Hispanic or Latino..................................... 13,202 13,624 420 430 226 226 Men.................................................. 8,341 8,597 450 456 242 239 Women................................................ 4,861 5,027 391 399 210 210 1 Beginning in 2003, persons who selected this race group only; persons who selected more than one race group only 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. Beginning in January 2003, 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, second 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......................................... 100,442 $616 56,111 $692 44,332 $547 16 to 24 years.......................................... 11,041 380 6,206 391 4,835 366 16 to 19 years........................................ 1,724 307 980 317 744 292 20 to 24 years........................................ 9,317 396 5,225 406 4,091 384 25 years and over....................................... 89,401 659 49,905 743 39,497 582 25 to 54 years........................................ 76,297 656 42,841 735 33,457 581 25 to 34 years...................................... 24,810 588 14,267 616 10,543 542 35 to 44 years...................................... 27,101 687 15,376 775 11,726 589 45 to 54 years...................................... 24,386 726 13,198 854 11,188 603 55 years and over..................................... 13,104 685 7,064 798 6,040 591 55 to 64 years...................................... 11,300 710 6,072 833 5,228 606 65 years and over................................... 1,804 537 992 622 812 427 White(1) 16 years and over......................................... 82,145 631 47,028 712 35,117 561 16 to 24 years.......................................... 9,125 383 5,244 394 3,881 368 25 years and over....................................... 73,020 679 41,784 766 31,236 591 25 to 54 years........................................ 61,844 676 35,695 759 26,149 590 55 years and over..................................... 11,176 698 6,089 821 5,087 597 Black or African American(1) 16 years and over......................................... 11,879 509 5,471 540 6,408 489 16 to 24 years.......................................... 1,249 363 593 368 656 354 25 years and over....................................... 10,630 534 4,879 584 5,752 507 25 to 54 years........................................ 9,397 527 4,309 580 5,087 503 55 years and over..................................... 1,234 582 569 602 664 553 Asian(1) 16 years and over......................................... 4,242 678 2,414 759 1,828 606 16 to 24 years.......................................... 324 404 191 391 133 435 25 years and over....................................... 3,918 725 2,223 804 1,695 622 25 to 54 years........................................ 3,421 727 1,924 796 1,497 638 55 years and over..................................... 497 672 299 848 198 521 Hispanic or Latino 16 years and over......................................... 13,624 $430 8,597 456 5,027 399 16 to 24 years.......................................... 2,152 341 1,367 350 785 328 25 years and over....................................... 11,472 464 7,230 488 4,242 417 25 to 54 years........................................ 10,519 458 6,643 482 3,875 416 55 years and over..................................... 953 514 587 567 367 447 1 Beginning in 2003, persons who selected this race group only; persons who selected more than one race group only 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. Beginning in January 2003, 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 2002 2003 2002 2003 TOTAL Managerial, professional, and related occupations........ 35,573 35,730 $853 $877 Management, business, and financial operations occupations........................................... 14,868 14,798 912 956 Professional and related occupations................... 20,705 20,932 816 837 Service occupations...................................... 13,008 13,184 397 398 Sales and office occupations............................. 24,965 25,396 521 545 Sales and related occupations.......................... 9,886 9,986 582 598 Office and administrative support occupations.......... 15,080 15,410 510 522 Natural resources, construction, and maintenance occupations............................................. 10,775 10,891 592 611 Farming, fishing, and forestry occupations............. 851 736 346 357 Construction and extraction occupations................ 6,063 5,889 590 598 Installation, maintenance, and repair occupations...... 3,861 4,265 655 668 Production, transportation, and material moving occupations............................................. 16,161 15,241 510 510 Production occupations................................. 9,359 8,600 502 504 Transportation and material moving occupations......... 6,802 6,641 520 517 Men Managerial, professional, and related occupations........ 18,103 17,666 1,001 1,048 Management, business, and financial operations occupations........................................... 8,456 8,124 1,077 1,140 Professional and related occupations................... 9,648 9,542 952 988 Service occupations...................................... 6,582 6,568 450 451 Sales and office occupations............................. 9,367 9,619 661 662 Sales and related occupations.......................... 5,501 5,676 740 733 Office and administrative support occupations.......... 3,867 3,943 594 583 Natural resources, construction, and maintenance occupations............................................. 10,239 10,433 599 616 Farming, fishing, and forestry occupations............. 661 552 366 379 Construction and extraction occupations................ 5,901 5,770 591 600 Installation, maintenance, and repair occupations...... 3,677 4,111 659 669 Production, transportation, and material moving occupations............................................. 12,437 11,825 562 562 Production occupations................................. 6,503 6,041 572 573 Transportation and material moving occupations......... 5,935 5,784 548 547 Women Managerial, professional, and related occupations........ 17,469 18,065 729 753 Management, business, and financial operations occupations........................................... 6,412 6,674 746 786 Professional and related occupations................... 11,057 11,391 717 734 Service occupations...................................... 6,425 6,616 357 365 Sales and office occupations............................. 15,598 15,777 482 502 Sales and related occupations.......................... 4,385 4,310 420 455 Office and administrative support occupations.......... 11,213 11,468 495 512 Natural resources, construction, and maintenance occupations............................................. 535 458 413 454 Farming, fishing, and forestry occupations............. 189 185 282 327 Construction and extraction occupations................ 162 119 518 535 Installation, maintenance, and repair occupations...... 184 154 529 656 Production, transportation, and material moving occupations............................................. 3,724 3,416 395 399 Production occupations................................. 2,857 2,560 388 399 Transportation and material moving occupations......... 868 857 420 396 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. Beginning in January 2003, 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 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.................................. 100,442 $301 $411 $616 $940 $1,413 Men..................................................... 56,111 321 452 692 1,057 1,582 Women................................................... 44,332 284 378 547 803 1,151 White(1)................................................ 82,145 304 419 631 964 1,447 Men................................................... 47,028 325 467 712 1,096 1,622 Women................................................. 35,117 286 384 561 814 1,163 Black or African American(1)............................ 11,879 283 369 509 759 1,043 Men................................................... 5,471 298 395 540 785 1,055 Women................................................. 6,408 273 345 489 732 1,037 Asian(1)................................................ 4,242 313 434 678 1,096 1,610 Men................................................... 2,414 334 472 759 1,223 1,829 Women................................................. 1,828 297 402 606 949 1,310 Hispanic or Latino...................................... 13,624 255 315 430 644 930 Men................................................... 8,597 273 330 456 676 972 Women................................................. 5,027 237 297 399 601 862 EDUCATIONAL ATTAINMENT Total, 25 years and over................................ 89,401 318 445 659 988 1,463 Less than a high school diploma....................... 8,788 246 301 394 547 753 High school graduates, no college..................... 27,157 303 399 547 768 1,029 Some college or associate degree...................... 24,256 338 457 638 894 1,219 Bachelor's degree and higher.......................... 29,201 483 671 969 1,431 2,023 Bachelor's degree only.............................. 19,253 461 630 902 1,329 1,884 Advanced degree..................................... 9,948 573 776 1,137 1,646 2,308 Men, 25 years and over................................ 49,905 356 495 743 1,128 1,656 Less than a high school diploma..................... 5,880 271 326 437 604 837 High school graduates, no college................... 15,122 344 449 621 880 1,166 Some college or associate degree.................... 12,658 391 524 740 999 1,384 Bachelor's degree and higher........................ 16,244 517 753 1,134 1,635 2,310 Bachelor's degree only............................ 10,705 496 712 1,045 1,486 2,090 Advanced degree................................... 5,539 597 878 1,346 1,912 2,698 Women, 25 years and over.............................. 39,497 295 399 582 840 1,196 Less than a high school diploma..................... 2,908 223 274 322 416 566 High school graduates, no college................... 12,034 280 355 474 626 834 Some college or associate degree.................... 11,598 308 404 555 755 1,004 Bachelor's degree and higher........................ 12,957 454 610 841 1,166 1,617 Bachelor's degree only............................ 8,548 427 581 774 1,079 1,512 Advanced degree................................... 4,409 525 718 968 1,318 1,794 1 Beginning in 2003, persons who selected this race group only; persons who selected more than one race group only 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. Beginning in January 2003, 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 2002 2003 2002 2003 SEX AND AGE Total, 16 years and over.................................. 21,356 21,721 $189 $193 Men, 16 years and over................................. 6,797 6,975 181 188 16 to 24 years....................................... 3,508 3,490 149 148 25 years and over.................................... 3,288 3,484 227 241 Women, 16 years and over............................... 14,559 14,746 193 196 16 to 24 years....................................... 4,438 4,430 138 143 25 years and over.................................... 10,121 10,316 228 228 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White(1)............................................... 18,395 18,388 190 195 Men.................................................. 5,665 5,729 177 186 Women................................................ 12,729 12,659 196 199 Black or African American(1)........................... 1,932 2,068 188 185 Men.................................................. 703 768 205 194 Women................................................ 1,229 1,300 178 180 Asian(1)............................................... 817 724 193 206 Men.................................................. 337 242 203 206 Women................................................ 481 482 186 205 Hispanic or Latino..................................... 2,363 2,512 182 185 Men.................................................. 818 996 192 209 Women................................................ 1,544 1,516 178 170 1 Beginning in 2003, persons who selected this race group only; persons who selected more than one race group only 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. Beginning in January 2003, data reflect revised population controls used in the household survey.