• Overview
• Concepts
  • Unit of observation
  • Classification systems
  • Ownership
  • Area definitions
  • Key concepts and definitions
  • Scope and exclusions
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Handbook of Methods Occupational Employment and Wage Statistics Concepts

Occupational Employment and Wage Statistics: Concepts

The Occupational Employment and Wage Statistics (OEWS) program is the only comprehensive source of regularly produced occupational employment and wage rate information for the U.S. economy. The scope includes the 50 states, the District of Columbia, Guam, Puerto Rico, the U.S. Virgin Islands, and metropolitan and nonmetropolitan areas covering the entire United States.

The following are definitions of the key concepts used in the OEWS program.

Unit of observation

The OEWS survey measures occupational employment and wage rates for wage and salary workers in nonfarm establishments in the United States. An establishment is generally a single physical location at which economic activity occurs (e.g., store, factory, restaurant). When a single physical location encompasses two or more distinct economic activities, it is treated as two or more separate establishments if separate payroll records are available and certain other criteria are met.

Classification systems

The OEWS survey uses the Office of Management and Budget’s Standard Occupational Classification (SOC) system to classify jobs into occupational categories and the North American Industry Classification System (NAICS) to classify establishments into industries.

The occupational coding system

The SOC system is used by federal statistical agencies to classify workers and jobs into occupational categories for the purpose of collecting, calculating, analyzing, or disseminating data. Jobs are assigned to an occupation based on the work the employee performs and not on their education or training. For example, an employee trained as an engineer but working as a drafter is reported as a drafter. Employees who perform the duties of two or more occupations are reported in the occupation that requires the highest level of skill or in the occupation where the most time is spent if there is no measurable difference in skill requirements. Working supervisors (those spending 20 percent or more of their time doing work similar to that of the workers they supervise) are classified with the workers they supervise. Workers receiving on-the-job training, apprentices, and trainees are classified with the occupations for which they are being trained. For more information about the SOC system, please see the BLS SOC webpage.

Since May 2021, OEWS data are based on the 2018 SOC. OEWS publishes data for most 2018 SOC detailed occupations. For a few occupations, OEWS publishes data only to the SOC broad occupation level or OEWS-specific combinations of detailed occupations. Occupations are aggregated to improve data quality in cases where it is difficult to collect the information needed to code jobs accurately to the individual detailed occupations within the aggregation.

The industry coding system

The NAICS is used throughout the federal government to group business establishments into industries based on the primary goods or services they produce. The NAICS has a hierarchical structure with several levels of industry detail: by broad industrial sectors (2-digit NAICS levels), subsectors (3-digit NAICS levels), industry groups (4-digit NAICS levels), and NAICS industries (5- and 6-digit NAICS levels). For more information about NAICS, see the BLS NAICS webpage.

Since May 2022, OEWS data are based on the 2022 NAICS. OEWS publishes national industry-specific data to the 4-digit NAICS level of detail for most industries. For some industries, OEWS publishes data only to the 3-digit subsector level or for OEWS-specific combinations of 4-digit industry groups. Data at the 5- and 6-digit NAICS level are available for selected industries only.

Ownership

OEWS classifies most government-owned establishments differently from the standard NAICS system. The standard NAICS classifies government establishments based on their primary activity, not ownership. Under the standard NAICS, government establishments that oversee programs and activities not generally performed by private-sector establishments are classified in NAICS sector 92, the code for the public administration sector. Government establishments producing goods and services that can also be provided by private-sector establishments are classified in the same industry as private-sector establishments engaged in similar activities.

The OEWS program classifies most government establishments based on ownership rather than primary activity and therefore does not use NAICS sector 92. Instead, the OEWS survey produces occupational employment and wage estimates at the federal, state, and local government levels and denotes them with industry codes 9991, 9992, and 9993, respectively.

The OEWS industry-specific data for state and local government (NAICS 9992 and 9993) consist of all state and local government establishments, except schools, hospitals, and local government gambling establishments and casino hotels. State and local government schools and hospitals and local government gambling establishments and casino hotels are classified in their respective NAICS industries, along with similar private-sector establishments. Estimates for schools and hospitals are available for private, state, and local government ownerships combined, as well as by individual ownership types. State and local government data that include schools, hospitals, and local government gambling establishments and casino hotels are also available as part of the OEWS cross-industry ownership estimates.

Within federal government, the OEWS survey covers the federal executive branch, U.S. Postal Service (USPS), and the Tennessee Valley Authority (TVA) only. The military, the federal legislative, and judicial branches are not included. OEWS industry-specific data for federal government (NAICS 9991) consist of the federal executive branch and TVA; in the industry-specific estimates, USPS is classified in NAICS 491100 - Postal Service. Data for the federal executive branch, TVA, and USPS combined are also available in the cross-industry ownership estimates.

Area definitions

The OEWS program uses the metropolitan statistical area (MSA) definitions provided by the Office of Management and Budget (OMB). The May 2024 OEWS estimates use the metropolitan area definitions delineated in OMB Bulletin 23-01. Nonmetropolitan areas are specific to the OEWS program and are set with guidance from our state program offices. The nonmetropolitan areas cover all counties that are not part of an OMB-defined metropolitan area. For detailed information on the current OEWS metropolitan and nonmetropolitan area definitions, see the downloadable XLSX file of OEWS area definitions.

Key concepts and definitions

Employment represents the estimated number of full- and part-time jobs in an occupation. The OEWS survey covers full- and part-time wage and salary employees in nonfarm industries, including employees on paid vacations or other types of paid leave; salaried officers, executives, and staff members of incorporated firms; employees temporarily assigned to other units; and noncontract employees for whom the reporting unit is their permanent duty station, regardless of whether that unit prepares their paychecks.

Self-employed workers, owners and partners in unincorporated firms, employees of private households, and unpaid family workers are not covered by the OEWS survey.

Wages are money that is paid or received for work or services performed in a specified period. Wages for the OEWS survey are straight-time, gross pay, excluding premium pay, such as overtime. Base rate pay; cost-of-living allowances; guaranteed pay; hazardous-duty pay; incentive pay, including commissions and production bonuses; and tips are included. Excluded are back pay, jury duty pay, overtime pay, severance pay, shift differentials, nonproduction bonuses, employer cost for supplementary benefits, and tuition reimbursements.

OEWS obtains two types of wage data. OEWS receives exact wage rates for federal government, USPS, TVA, and most employees in state government, local government, and private-sector establishments. For a small percentage of records for which exact wage rates are not available, the wage data are processed in 12 wage intervals. The intervals are defined both as hourly rates and the corresponding annual rates, where the annual rate for an occupation is calculated by multiplying the hourly wage rate by a typical work year of 2,080 hours. Wage intervals are updated periodically based on the wages in the labor market. The current OEWS wage intervals are shown in table 1.

Responding establishments are instructed to report the hourly rate for part-time workers and to report either hourly rates or annual salaries for full-time workers, depending on how that worker is paid.

For most occupations, the OEWS program publishes both hourly and annual wage estimates, using a standard work year of 2,080 hours to convert between hourly and annual wage data. Workers in some occupations, such as teachers, pilots, and flight attendants, are typically paid at an annual rate but do not work 2,080 hours per year. For these occupations, OEWS collects and publishes only annual wages. Other occupations, such as actors or musicians and singers, are paid hourly rates but generally do not work 40 hours per week, year-round. For these occupations, OEWS collects and publishes only hourly wages.

Scope and exclusions

The OEWS survey measures employment and wages by occupation for wage and salary employees in nonfarm establishments. The survey excludes most of the agricultural sector, private household employers, and the self-employed.

Scope of the survey

The OEWS program annually publishes employment and wage estimates by occupation for wage and salary jobs in nonfarm establishments in the United States. The OEWS data available from the U.S. Bureau of Labor Statistics (BLS) include cross-industry occupational employment and wage estimates for the nation; states, the District of Columbia, and Guam, Puerto Rico, and the Virgin Islands; and approximately 530 metropolitan statistical areas (MSAs) and nonmetropolitan areas. BLS also publishes national industry-specific estimates at the NAICS sector, 3-digit, most 4-digit, and selected 5- and 6-digit industry levels; and national estimates by ownership across all industries and for schools and hospitals.

Occupation exclusions

OEWS produces data for approximately 830 occupational categories based on the Office of Management and Budget's 2018 Standard Occupational Classification (SOC) system. These occupational categories make up 22 of the 23 SOC major occupational groups. Major group 55, which refers to Military Specific Occupations, is not included.

Industry coverage and exclusions

The OEWS survey excludes the majority of the agricultural sector, with the exception of logging (NAICS 113310), support activities for crop production (NAICS 1151), and support activities for animal production (NAICS 1152). Private households (NAICS 814) also are excluded. OEWS federal government data include the federal executive branch, U.S. Postal Service, and TVA only. All other industries, including state and local government, are covered by the survey. Industries that fall within the OEWS scope are shown in exhibit 1.