Technical information: (202) 691-6378 USDL 06-1236 http://www.bls.gov/cps/ For release: 10:00 A.M. EDT Media contact: 691-5902 Thursday, July 20, 2006 USUAL WEEKLY EARNINGS OF WAGE AND SALARY WORKERS: SECOND QUARTER 2006 Median weekly earnings of the nation's 105.9 million full-time wage and salary workers were $659 in the second quarter of 2006, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This was 2.5 percent higher than a year earlier, compared with a gain of 4.0 percent in the Consumer Price Index for All Urban Consumers (CPI-U) over the same pe- riod. 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 $593 per week, or 81.1 percent of the $731 median for men. The female-to-male earnings ratios were higher among blacks (89.2 percent) and Hispanics or Latinos (86.1 percent) than among Asians (81.6 percent) or whites (79.9 percent). (See table 1.) --Median earnings for black men working at full-time jobs were $573 per week, 76.1 percent of the median for white men ($753). The difference was less among women, as black women's median earnings ($511) were 84.9 percent of those for their white counterparts ($602). Overall, median earnings of Hispanics or Latinos who worked full time ($485) were lower than those of blacks ($534), whites ($678), and Asians ($765). (See table 1.) --Among men, those age 55 to 64 and age 45 to 54 had the highest median weekly earnings, $900 and $897, respectively. Among women, earnings were highest for those age 45 to 54 ($646). (See table 2.) --Among the major occupational groups, persons employed full time in managerial, professional, and related occupations had the highest median weekly earnings--$1,159 for men and $829 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 $420, compared with $591 for high school graduates (no college) and $1,047 for college graduates holding at least a bachelor's degree. Among college graduates with advanced degrees (professional or mas- ter's degree and above), the highest-earning 10 percent of male workers made $2,888 or more per week, compared with $1,994 or more for their female coun- terparts. (See table 4.) - 2 - 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. - 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 II II 2005 2006 II II II II 2005 2006 2005 2006 SEX AND AGE Total, 16 years and over.................................. 103,332 105,881 $643 $659 $319 $315 Men, 16 years and over................................. 58,242 59,983 713 731 354 349 16 to 24 years....................................... 6,511 6,684 407 421 202 201 25 years and over.................................... 51,730 53,299 762 783 378 374 Women, 16 years and over............................... 45,090 45,897 580 593 288 283 16 to 24 years....................................... 4,708 4,710 374 395 186 188 25 years and over.................................... 40,382 41,188 608 619 301 295 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White.................................................. 83,903 85,831 663 678 329 323 Men.................................................. 48,487 49,804 732 753 363 359 Women................................................ 35,416 36,026 590 602 293 287 Black or African American.............................. 12,293 12,748 518 534 257 255 Men.................................................. 5,882 6,084 565 573 280 274 Women................................................ 6,411 6,664 487 511 241 244 Asian.................................................. 4,697 4,858 743 765 369 365 Men.................................................. 2,580 2,780 810 843 402 402 Women................................................ 2,118 2,078 664 688 329 328 Hispanic or Latino ethnicity........................... 14,817 15,715 473 485 235 231 Men.................................................. 9,575 10,044 487 504 242 241 Women................................................ 5,242 5,671 437 434 217 207 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 2006, 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 2006 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......................................... 105,881 $659 59,983 $731 45,897 $593 16 to 24 years.......................................... 11,394 410 6,684 421 4,710 395 16 to 19 years........................................ 1,804 330 1,055 355 749 307 20 to 24 years........................................ 9,590 427 5,629 438 3,961 416 25 years and over....................................... 94,487 705 53,299 783 41,188 619 25 to 54 years........................................ 78,777 700 44,689 772 34,088 619 25 to 34 years...................................... 25,350 617 14,703 647 10,647 583 35 to 44 years...................................... 27,273 735 15,639 815 11,634 638 45 to 54 years...................................... 26,153 766 14,347 897 11,807 646 55 years and over..................................... 15,710 728 8,611 858 7,100 619 55 to 64 years...................................... 13,617 749 7,341 900 6,276 633 65 years and over................................... 2,093 559 1,270 614 823 510 White 16 years and over......................................... 85,831 678 49,804 753 36,026 602 16 to 24 years.......................................... 9,273 414 5,591 427 3,682 396 25 years and over....................................... 76,558 727 44,213 814 32,345 630 25 to 54 years........................................ 63,423 723 36,883 800 26,540 630 55 years and over..................................... 13,134 746 7,330 889 5,804 628 Black or African American 16 years and over......................................... 12,748 534 6,084 573 6,664 511 16 to 24 years.......................................... 1,388 386 679 394 709 375 25 years and over....................................... 11,360 570 5,405 595 5,955 530 25 to 54 years........................................ 9,768 575 4,640 596 5,128 535 55 years and over..................................... 1,592 546 765 592 826 517 Asian 16 years and over......................................... 4,858 765 2,780 843 2,078 688 16 to 24 years.......................................... 304 487 174 483 130 496 25 years and over....................................... 4,553 803 2,605 897 1,948 714 25 to 54 years........................................ 3,840 810 2,246 893 1,594 724 55 years and over..................................... 713 761 359 912 354 664 Hispanic or Latino ethnicity 16 years and over......................................... 15,715 485 10,044 504 5,671 434 16 to 24 years.......................................... 2,266 378 1,517 384 749 362 25 years and over....................................... 13,449 507 8,526 533 4,922 454 25 to 54 years........................................ 12,065 507 7,671 535 4,394 450 55 years and over..................................... 1,383 506 855 522 528 485 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 2006, 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 2005 2006 2005 2006 TOTAL Management, professional, and related occupations.............. 36,148 37,095 $926 $967 Management, business, and financial operations occupations... 14,664 15,267 979 1,091 Professional and related occupations......................... 21,484 21,827 894 911 Service occupations............................................ 14,217 14,933 406 421 Sales and office occupations................................... 25,379 25,860 577 581 Sales and related occupations................................ 10,460 10,682 624 615 Office and administrative support occupations................ 14,918 15,177 550 561 Natural resources, construction, and maintenance occupations... 12,337 12,430 616 643 Farming, fishing, and forestry occupations................... 735 739 374 388 Construction and extraction occupations...................... 7,061 7,204 595 610 Installation, maintenance, and repair occupations............ 4,542 4,487 692 736 Production, transportation, and material moving occupations.... 15,250 15,564 546 554 Production occupations....................................... 8,373 8,576 552 549 Transportation and material moving occupations............... 6,878 6,988 536 565 Men Management, professional, and related occupations.............. 17,936 18,713 1,089 1,159 Management, business, and financial operations occupations... 8,131 8,669 1,144 1,254 Professional and related occupations......................... 9,805 10,044 1,054 1,090 Service occupations............................................ 6,937 7,237 473 492 Sales and office occupations................................... 9,623 9,827 684 669 Sales and related occupations................................ 5,806 5,952 744 735 Office and administrative support occupations................ 3,817 3,875 608 600 Natural resources, construction, and maintenance occupations... 11,793 11,947 621 648 Farming, fishing, and forestry occupations................... 575 542 402 411 Construction and extraction occupations...................... 6,873 7,071 599 611 Installation, maintenance, and repair occupations............ 4,344 4,334 693 734 Production, transportation, and material moving occupations.... 11,952 12,259 593 598 Production occupations....................................... 6,026 6,153 607 615 Transportation and material moving occupations............... 5,926 6,105 580 587 Women Management, professional, and related occupations.............. 18,211 18,381 805 829 Management, business, and financial operations occupations... 6,533 6,598 838 899 Professional and related occupations......................... 11,679 11,783 785 781 Service occupations............................................ 7,281 7,696 371 389 Sales and office occupations................................... 15,755 16,032 523 534 Sales and related occupations................................ 4,655 4,730 495 491 Office and administrative support occupations................ 11,101 11,302 531 551 Natural resources, construction, and maintenance occupations... 545 483 438 504 Farming, fishing, and forestry occupations................... 160 197 333 305 Construction and extraction occupations...................... 188 133 406 542 Installation, maintenance, and repair occupations............ 197 153 659 837 Production, transportation, and material moving occupations.... 3,298 3,305 409 424 Production occupations....................................... 2,347 2,423 417 427 Transportation and material moving occupations............... 951 883 391 415 NOTE: Beginning in January 2006, 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 2006 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.................................. 105,881 $316 $441 $659 $1,017 $1,542 Men..................................................... 59,983 339 486 731 1,148 1,750 Women................................................... 45,897 296 403 593 874 1,266 White................................................... 85,831 323 456 678 1,042 1,573 Men................................................... 49,804 349 497 753 1,165 1,772 Women................................................. 36,026 300 409 602 887 1,277 Black or African American............................... 12,748 287 384 534 783 1,171 Men................................................... 6,084 296 396 573 852 1,259 Women................................................. 6,664 280 372 511 755 1,093 Asian................................................... 4,858 341 502 765 1,273 1,900 Men................................................... 2,780 375 533 843 1,400 2,008 Women................................................. 2,078 316 475 688 1,112 1,555 Hispanic or Latino ethnicity............................ 15,715 277 349 485 696 1,032 Men................................................... 10,044 293 372 504 732 1,119 Women................................................. 5,671 244 315 434 639 920 EDUCATIONAL ATTAINMENT Total, 25 years and over................................ 94,487 338 480 705 1,078 1,604 Less than a high school diploma....................... 9,339 258 319 420 592 791 High school graduates, no college(1).................. 28,256 314 416 591 836 1,160 Some college or associate degree...................... 25,905 359 488 676 957 1,312 Bachelor's degree and higher (2)...................... 30,987 506 721 1,047 1,563 2,205 Bachelor's degree only.............................. 20,163 480 660 968 1,441 1,925 Advanced degree..................................... 10,824 613 841 1,217 1,835 2,513 Men, 25 years and over................................ 53,299 376 520 783 1,206 1,842 Less than a high school diploma..................... 6,328 287 360 475 637 853 High school graduates, no college(1)................ 16,372 354 488 669 952 1,283 Some college or associate degree.................... 13,463 403 554 779 1,108 1,467 Bachelor's degree and higher (2).................... 17,136 545 792 1,200 1,839 2,482 Bachelor's degree only............................ 11,048 501 736 1,112 1,641 2,253 Advanced degree................................... 6,088 663 954 1,440 2,005 2,888 Women, 25 years and over.............................. 41,188 311 423 619 914 1,338 Less than a high school diploma..................... 3,011 224 278 356 466 642 High school graduates, no college(1)................ 11,883 289 373 496 675 895 Some college or associate degree.................... 12,442 329 433 597 808 1,084 Bachelor's degree and higher (2).................... 13,851 484 648 923 1,287 1,770 Bachelor's degree only............................ 9,115 451 612 856 1,198 1,658 Advanced degree................................... 4,736 582 749 1,026 1,465 1,994 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 2006, 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 2005 2006 2005 2006 SEX AND AGE Total, 16 years and over.................................. 21,891 21,862 $204 $204 Men, 16 years and over................................. 6,962 6,660 194 190 16 to 24 years....................................... 3,339 3,433 152 152 25 years and over.................................... 3,623 3,227 245 248 Women, 16 years and over............................... 14,929 15,202 209 210 16 to 24 years....................................... 4,633 4,746 151 148 25 years and over.................................... 10,296 10,456 245 249 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White.................................................. 18,479 18,382 205 206 Men.................................................. 5,839 5,508 192 190 Women................................................ 12,640 12,874 211 212 Black or African American.............................. 2,120 2,125 201 193 Men.................................................. 697 710 206 187 Women................................................ 1,423 1,415 197 195 Asian.................................................. 792 876 197 213 Men.................................................. 256 267 189 193 Women................................................ 536 609 201 228 Hispanic or Latino ethnicity........................... 2,506 2,384 201 203 Men.................................................. 868 755 209 219 Women................................................ 1,637 1,629 196 198 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 2006, data reflect revised population controls used in the household survey.