Internet address: http://stats.bls.gov/newsrels.htm Technical information: (202) 606-6378 USDL 98-425 For release: 10:00 A.M. EDT Media contact: 606-5902 Wednesday, October 21, 1998 USUAL WEEKLY EARNINGS OF WAGE AND SALARY WORKERS: THIRD QUARTER 1998 Median weekly earnings of the nation's 97.4 million full-time wage and salary workers were $520 in the third quarter of 1998, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This was 4.2 percent higher than a year earlier, compared with a gain of 1.6 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. For further information, see the explanatory note. ---Women who usually worked full time had median earnings of $455 a week, or 76.7 percent of the $593 median for men. The female-to-male earnings ratios were higher among blacks (88.1 percent) and Hispanics (87.4 percent) than among whites (76.1 percent). (See table 1.) ---Median earnings for black men working at full-time jobs were $462 per week, 75.7 percent of the median for white men ($610). The difference was much less among women, as black women's median earnings ($407) were 87.7 percent of those for their white counterparts ($464). Overall, median earnings of Hispanics who worked full time ($382) were lower than those of blacks ($430) and whites ($540). (See table 1.) ---The highest median weekly earnings for full-time workers were $735 for men in the 45- to 54-year-age group; second highest was the median for 55- to 64- year-old men at $698. Among women, the highest-earning age group also was 45- to 54-year-olds, who had a median of $523, followed by 35- to 44-year-olds, with a median of $501. (See table 2.) ---Among the major occupational groups, persons employed full time in managerial and professional specialty occupations had the highest median weekly earnings--$910 for men and $664 for women--while men and women in service and farm jobs earned the least. (See table 3.) ---Full-time workers age 25 and over with less than a high school diploma had median weekly earnings of $341, compared with $486 for high school graduates (no college) and $822 for college graduates. Among college graduates, the highest 10 percent of male workers earned $1,891 or more, compared with $1,329 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 Bureau of the Census from a scientifically selected national sample of about 50,000 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: 202-606-STAT; TDD phone: 202-606-5897; TDD message referral phone number: 1-800-326-2577. 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 the February 1994 and subsequent issues 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). 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. - 2 - 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 origin. Refers to persons who are of Mexican, Puerto Rican, Cuban, Central or South American, or other Hispanic origin or descent. Persons of Hispanic origin may be of any race; hence, they are included in the numbers for the white and black populations. Table 1. Median usual weekly earnings of full-time wage and salary workers by selected characteristics, quarterly averages, not seasonally adjusted Number of workers Median weekly earnings (in thousands) Characteristic In current dollars In constant (1982) dollars III III 1997 1998 III III III III 1997 1998 1997 1998 SEX AND AGE Total, 16 years and over.................................. 95,837 97,437 $499 $520 $300 $307 Men, 16 years and over................................. 54,491 55,378 573 593 344 350 16 to 24 years....................................... 7,009 7,086 312 323 187 191 25 years and over.................................... 47,483 48,292 614 639 368 378 Women, 16 years and over............................... 41,346 42,059 429 455 258 269 16 to 24 years....................................... 5,129 5,346 291 299 174 177 25 years and over.................................... 36,217 36,713 463 489 278 289 RACE, HISPANIC ORIGIN, AND SEX White.................................................. 79,853 81,096 515 540 309 319 Men.................................................. 46,434 47,142 592 610 355 361 Women................................................ 33,419 33,954 441 464 265 274 Black.................................................. 11,691 11,880 397 430 238 254 Men.................................................. 5,640 5,727 420 462 252 273 Women................................................ 6,051 6,153 376 407 225 241 Hispanic origin........................................ 10,279 10,582 352 382 211 225 Men.................................................. 6,569 6,720 373 398 224 235 Women................................................ 3,710 3,863 319 348 191 205 NOTE: Detail for the above race and Hispanic-origin groups will not sum to totals because data for the "other races" group are not presented and Hispanics are included in both the white and black population groups. Beginning in January 1998, data reflect new composite estimation procedures and 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 origin, and sex, third quarter 1998 averages, not seasonally adjusted Total Men Women Age, race, and Hispanic origin 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......................................... 97,437 $520 55,378 $593 42,059 $455 16 to 24 years.......................................... 12,432 313 7,086 323 5,346 299 16 to 19 years........................................ 3,052 260 1,762 268 1,290 248 20 to 24 years........................................ 9,380 334 5,324 351 4,056 317 25 years and over....................................... 85,005 575 48,292 639 36,713 489 25 to 54 years........................................ 75,137 573 42,568 634 32,569 490 25 to 34 years...................................... 25,671 498 14,820 533 10,851 449 35 to 44 years...................................... 28,513 600 16,330 678 12,183 501 45 to 54 years...................................... 20,953 628 11,418 735 9,536 523 55 years and over..................................... 9,868 588 5,724 678 4,144 480 55 to 64 years...................................... 8,658 605 4,970 698 3,688 496 65 years and over................................... 1,210 393 754 433 456 350 White 16 years and over......................................... 81,096 540 47,142 610 33,954 464 16 to 24 years.......................................... 10,562 316 6,172 328 4,390 300 25 years and over....................................... 70,535 592 40,970 665 29,564 499 25 to 54 years........................................ 62,014 591 35,951 660 26,063 501 55 years and over..................................... 8,521 600 5,019 701 3,502 479 Black 16 years and over......................................... 11,880 430 5,727 462 6,153 407 16 to 24 years.......................................... 1,378 289 639 293 739 286 25 years and over....................................... 10,503 468 5,088 491 5,415 434 25 to 54 years........................................ 9,560 463 4,604 491 4,956 424 55 years and over..................................... 943 504 484 493 458 517 Hispanic origin 16 years and over......................................... 10,582 382 6,720 398 3,863 348 16 to 24 years.......................................... 1,895 297 1,234 301 661 291 25 years and over....................................... 8,687 408 5,486 424 3,201 375 25 to 54 years........................................ 7,947 410 5,009 430 2,938 375 55 years and over..................................... 740 393 477 397 263 384 NOTE: Detail for the above race and Hispanic-origin groups will not sum to totals because data for the "other races" group are not presented and Hispanics are included in both the white and black population groups. Beginning in January 1998, data reflect new composite estimation procedures and revised population controls used in the household survey. Table 3. Median usual weekly earnings of full-time wage and salary workers by occupation and sex, quarterly averages, not seasonally adjusted Number of workers Median weekly earnings (in thousands) Occupation and sex III III III III 1997 1998 1997 1998 TOTAL Managerial and professional specialty.................... 28,075 28,996 $732 $766 Executive, administrative, and managerial.............. 14,096 14,666 731 763 Professional specialty................................. 13,979 14,330 733 769 Technical, sales, and administrative support............. 27,477 28,258 455 477 Technicians and related support........................ 3,533 3,598 570 589 Sales occupations...................................... 9,773 9,941 474 498 Administrative support, including clerical............. 14,170 14,719 424 439 Service occupations...................................... 10,719 11,062 312 329 Private household...................................... 312 379 191 219 Protective service..................................... 2,168 2,210 539 576 Service, except private household and protective....... 8,238 8,472 295 309 Precision production, craft, and repair.................. 11,827 12,243 560 560 Mechanics and repairers................................ 4,061 4,322 590 590 Construction trades.................................... 4,045 4,228 529 528 Other precision production, craft, and repair.......... 3,721 3,693 551 546 Operators, fabricators, and laborers..................... 15,976 15,221 398 414 Machine operators, assemblers, and inspectors.......... 7,378 6,848 390 398 Transportation and material moving occupations......... 4,400 4,372 499 505 Handlers, equipment cleaners, helpers, and laborers.... 4,198 4,000 323 358 Farming, forestry, and fishing........................... 1,763 1,658 302 303 Men Managerial and professional specialty.................... 14,261 14,806 852 910 Executive, administrative, and managerial.............. 7,546 7,912 864 924 Professional specialty................................. 6,715 6,894 838 894 Technical, sales, and administrative support............. 10,390 10,781 578 602 Technicians and related support........................ 1,755 1,748 640 683 Sales occupations...................................... 5,299 5,533 590 614 Administrative support, including clerical............. 3,336 3,499 520 519 Service occupations...................................... 5,326 5,459 377 381 Private household...................................... 18 12 (1) (1) Protective service..................................... 1,849 1,889 $565 $603 Service, except private household and protective....... 3,459 3,557 317 331 Precision production, craft, and repair.................. 10,745 11,190 579 579 Mechanics and repairers................................ 3,860 4,164 593 592 Construction trades.................................... 3,956 4,136 530 533 Other precision production, craft, and repair.......... 2,928 2,890 602 607 Operators, fabricators, and laborers..................... 12,245 11,702 432 457 Machine operators, assemblers, and inspectors.......... 4,703 4,348 $446 $465 Transportation and material moving occupations......... 4,136 4,066 506 513 Handlers, equipment cleaners, helpers, and laborers.... 3,406 3,288 335 372 Farming, forestry, and fishing........................... 1,525 1,441 312 304 Women Managerial and professional specialty.................... 13,815 14,190 632 664 Executive, administrative, and managerial.............. 6,550 6,754 610 631 Professional specialty................................. 7,264 7,436 658 705 Technical, sales, and administrative support............. 17,087 17,477 409 419 Technicians and related support........................ 1,778 1,849 501 507 Sales occupations...................................... 4,474 4,408 354 362 Administrative support, including clerical............. 10,835 11,220 409 421 Service occupations...................................... 5,392 5,603 278 297 Private household...................................... 294 367 185 219 Protective service..................................... 319 321 417 445 Service, except private household and protective....... 4,780 4,915 279 296 Precision production, craft, and repair.................. 1,082 1,053 391 404 Mechanics and repairers................................ 201 158 542 510 Construction trades.................................... 89 92 (1) (1) Other precision production, craft, and repair.......... 792 803 $355 $393 Operators, fabricators, and laborers..................... 3,731 3,519 310 323 Machine operators, assemblers, and inspectors.......... 2,675 2,501 311 320 Transportation and material moving occupations......... 264 306 351 407 Handlers, equipment cleaners, helpers, and laborers.... 792 712 300 323 Farming, forestry, and fishing........................... 239 217 264 291 1 Data not shown where base is less than 100,000. Beginning in January 1998, data reflect new composite estimation procedures and revised population controls used in the household survey. Table 4. Quartiles and selected deciles of usual weekly earnings of full-time wage and salary workers by selected characteristics, third quarter 1998 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 ORIGIN Total, 16 years and over.................................. 97,437 $254 $345 $520 $785 $1,151 Men..................................................... 55,378 276 385 593 890 1,267 Women................................................... 42,059 236 311 455 665 945 White................................................... 81,096 258 357 540 812 1,171 Men................................................... 47,142 280 396 610 918 1,315 Women................................................. 33,954 237 317 464 673 958 Black................................................... 11,880 236 303 430 634 881 Men................................................... 5,727 244 316 462 667 905 Women................................................. 6,153 231 291 407 606 844 Hispanic................................................ 10,582 221 277 382 576 812 Men................................................... 6,720 231 288 398 605 889 Women................................................. 3,863 203 258 348 522 715 EDUCATIONAL ATTAINMENT Total, 25 years and over................................ 85,005 277 383 575 836 1,195 Less than a high school diploma....................... 8,760 207 260 341 479 655 High school graduates, no college..................... 27,207 261 345 486 679 921 Some college or associate degree...................... 23,572 291 392 555 767 1,024 College graduates, total.............................. 25,466 418 590 822 1,175 1,646 Bachelor's degree only.............................. 16,857 396 546 757 1,101 1,469 Advanced degree..................................... 8,609 507 683 954 1,363 1,907 Men, 25 years and over................................ 48,292 301 427 639 938 1,342 Less than a high school diploma..................... 5,809 225 287 389 517 725 High school graduates, no college................... 15,527 295 400 576 773 1,026 Some college or associate degree.................... 12,524 320 450 637 876 1,146 College graduates, total............................ 14,433 454 639 935 1,337 1,891 Bachelor's degree only............................ 9,547 425 600 863 1,233 1,672 Advanced degree................................... 4,886 538 747 1,108 1,553 2,204 Women, 25 years and over.............................. 36,713 251 335 489 703 977 Less than a high school diploma..................... 2,951 188 232 283 368 488 High school graduates, no college................... 11,681 236 300 400 537 697 Some college or associate degree.................... 11,048 271 349 481 653 845 College graduates, total............................ 11,033 394 539 721 978 1,329 Bachelor's degree only............................ 7,309 $377 $498 $661 $910 $1,211 Advanced degree................................... 3,724 477 626 840 1,138 1,545 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. Detail for the above race and Hispanic-origin groups will not sum to totals because data for the "other races" group are not presented and Hispanics are included in both the white and black population groups. Beginning in January 1998, data reflect new composite estimation procedures and 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) Age, race, and Hispanic origin III III III III 1997 1998 1997 1998 SEX AND AGE Total, 16 years and over.................................. 19,482 19,588 $156 $161 Men, 16 years and over................................. 5,976 6,101 148 153 16 to 24 years....................................... 3,248 3,352 127 130 25 years and over.................................... 2,728 2,749 188 203 Women, 16 years and over............................... 13,505 13,487 159 165 16 to 24 years....................................... 4,086 4,186 121 130 25 years and over.................................... 9,419 9,301 185 189 RACE, HISPANIC ORIGIN, AND SEX White.................................................. 16,749 16,774 157 162 Men.................................................. 4,933 5,055 149 154 Women................................................ 11,817 11,720 161 167 Black.................................................. 1,924 2,012 146 150 Men.................................................. 726 740 150 142 Women................................................ 1,198 1,271 144 155 Hispanic origin........................................ 1,794 1,756 141 154 Men.................................................. 651 626 145 164 Women................................................ 1,143 1,130 139 149 NOTE: Detail for the above race and Hispanic-origin groups will not sum to totals because data for the "other races" group are not presented and Hispanics are included in both the white and black population groups. Beginning in January 1998, data reflect new composite estimation procedures and revised population controls used in the household survey.