Technical information: (202) 691-6378 USDL 04-1328 http://www.bls.gov/cps/ For release: 10:00 A.M. EDT Media contact: 691-5902 Tuesday, July 20, 2004 USUAL WEEKLY EARNINGS OF WAGE AND SALARY WORKERS: SECOND QUARTER 2004 Median weekly earnings of the nation's 101.3 million full-time wage and salary workers were $639 in the second quarter of 2004, 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 2.8 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 $572 per week, or 80.1 percent of the $714 median for men. The female-to-male earnings ratios were higher among Hispanics or Latinos (86.8 percent) and blacks (84.3 percent) than among Asians (80.9 percent) or whites (80.0 percent). (See table 1.) --Median earnings for black men working at full-time jobs were $598 per week, 82.0 percent of the median for white men ($729). The difference was less among women, as black women's median earnings ($504) were 86.4 percent of those for their white counterparts ($583). Overall, median earnings of Hispanics or Latinos who worked full time ($451) were lower than those of blacks ($536), whites ($655), and Asians ($720). (See table 1.) --Among men, those age 55 to 64 and age 45 to 54 had the highest median weekly earnings, $854 and $849, respectively. Among women, earnings also were highest for these two age groups--$628 for both groups. (See table 2.) --Among the major occupational groups, persons employed full time in managerial, professional, and related occupations had the highest median weekly earnings--$1,073 for men and $782 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 $404, compared with $576 for high school graduates (no college) and $973 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 $2,891 or more per week, compared with $1,845 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. 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 2003 2004 II II II II 2003 2004 2003 2004 SEX AND AGE Total, 16 years and over.................................. 100,442 101,300 $616 $639 $323 $326 Men, 16 years and over................................. 56,111 57,034 692 714 363 364 16 to 24 years....................................... 6,206 6,272 391 397 205 203 25 years and over.................................... 49,905 50,763 743 763 390 389 Women, 16 years and over............................... 44,332 44,266 547 572 287 292 16 to 24 years....................................... 4,835 4,691 366 370 192 189 25 years and over.................................... 39,497 39,575 582 601 306 307 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White.................................................. 82,145 82,756 631 655 331 334 Men.................................................. 47,028 47,688 712 729 374 372 Women................................................ 35,117 35,067 561 583 295 298 Black or African American.............................. 11,879 12,014 509 536 267 274 Men.................................................. 5,471 5,669 540 598 284 305 Women................................................ 6,408 6,344 489 504 257 257 Asian.................................................. 4,242 4,328 678 720 356 368 Men.................................................. 2,414 2,404 759 807 399 412 Women................................................ 1,828 1,924 606 653 318 333 Hispanic or Latino..................................... 13,624 14,324 430 451 226 230 Men.................................................. 8,597 9,163 456 477 239 244 Women................................................ 5,027 5,160 399 414 210 211 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 2004, 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 2004 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......................................... 101,300 $639 57,034 $714 44,266 $572 16 to 24 years.......................................... 10,963 387 6,272 397 4,691 370 16 to 19 years........................................ 1,637 313 991 324 646 296 20 to 24 years........................................ 9,325 401 5,281 409 4,045 386 25 years and over....................................... 90,337 684 50,763 763 39,575 601 25 to 54 years........................................ 76,648 679 43,303 754 33,345 599 25 to 34 years...................................... 24,863 595 14,459 627 10,404 553 35 to 44 years...................................... 26,826 722 15,395 814 11,431 613 45 to 54 years...................................... 24,959 741 13,449 849 11,510 628 55 years and over..................................... 13,690 714 7,460 832 6,230 611 55 to 64 years...................................... 11,844 733 6,443 854 5,401 628 65 years and over................................... 1,846 592 1,017 664 828 473 White 16 years and over......................................... 82,756 655 47,688 729 35,067 583 16 to 24 years.......................................... 9,177 391 5,344 398 3,833 379 25 years and over....................................... 73,579 703 42,344 781 31,234 612 25 to 54 years........................................ 61,980 698 35,917 769 26,063 611 55 years and over..................................... 11,599 729 6,427 862 5,171 618 Black or African American 16 years and over......................................... 12,014 536 5,669 598 6,344 504 16 to 24 years.......................................... 1,202 346 606 381 596 328 25 years and over....................................... 10,812 577 5,063 626 5,748 520 25 to 54 years........................................ 9,494 576 4,468 627 5,026 521 55 years and over..................................... 1,318 585 596 618 722 514 Asian 16 years and over......................................... 4,328 720 2,404 807 1,924 653 16 to 24 years.......................................... 264 404 127 405 137 402 25 years and over....................................... 4,064 755 2,276 840 1,788 667 25 to 54 years........................................ 3,524 749 1,971 840 1,552 664 55 years and over..................................... 540 794 305 838 235 739 Hispanic or Latino 16 years and over......................................... 14,324 $451 9,163 477 5,160 414 16 to 24 years.......................................... 2,233 346 1,439 353 794 330 25 years and over....................................... 12,091 484 7,724 502 4,367 439 25 to 54 years........................................ 10,951 481 7,063 499 3,888 436 55 years and over..................................... 1,139 508 661 558 478 472 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 2004, 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 2003 2004 2003 2004 TOTAL Managerial, professional, and related occupations........ 35,730 36,217 $877 $912 Management, business, and financial operations occupations.......................................... 14,798 14,828 956 952 Professional and related occupations................... 20,932 21,389 837 882 Service occupations...................................... 13,184 13,847 398 409 Sales and office occupations............................. 25,396 24,846 545 557 Sales and related occupations.......................... 9,986 9,899 598 616 Office and administrative support occupations.......... 15,410 14,947 522 525 Natural resources, construction, and maintenance occupations............................................ 10,891 11,157 611 618 Farming, fishing, and forestry occupations............. 736 768 357 367 Construction and extraction occupations................ 5,889 6,090 598 595 Installation, maintenance, and repair occupations...... 4,265 4,299 668 707 Production, transportation, and material moving occupations............................................ 15,241 15,233 510 523 Production occupations................................. 8,600 8,496 504 520 Transportation and material moving occupations......... 6,641 6,737 517 528 Men Managerial, professional, and related occupations........ 17,666 17,976 1,048 1,073 Management, business, and financial operations occupations.......................................... 8,124 8,183 1,140 1,134 Professional and related occupations................... 9,542 9,793 988 1,046 Service occupations...................................... 6,568 7,012 451 474 Sales and office occupations............................. 9,619 9,435 662 664 Sales and related occupations.......................... 5,676 5,601 733 753 Office and administrative support occupations.......... 3,943 3,835 583 585 Natural resources, construction, and maintenance occupations............................................ 10,433 10,669 616 623 Farming, fishing, and forestry occupations............. 552 632 379 382 Construction and extraction occupations................ 5,770 5,963 600 596 Installation, maintenance, and repair occupations...... 4,111 4,073 669 711 Production, transportation, and material moving occupations............................................ 11,825 11,942 562 577 Production occupations................................. 6,041 6,072 573 590 Transportation and material moving occupations......... 5,784 5,871 547 561 Women Managerial, professional, and related occupations........ 18,065 18,241 753 782 Management, business, and financial operations occupations.......................................... 6,674 6,645 786 810 Professional and related occupations................... 11,391 11,596 734 768 Service occupations...................................... 6,616 6,835 365 369 Sales and office occupations............................. 15,777 15,411 502 509 Sales and related occupations.......................... 4,310 4,298 455 465 Office and administrative support occupations.......... 11,468 11,112 512 516 Natural resources, construction, and maintenance occupations............................................ 458 488 454 476 Farming, fishing, and forestry occupations............. 185 136 327 330 Construction and extraction occupations................ 119 127 535 509 Installation, maintenance, and repair occupations...... 154 225 656 588 Production, transportation, and material moving occupations............................................ 3,416 3,291 399 405 Production occupations................................. 2,560 2,424 399 407 Transportation and material moving occupations......... 857 867 396 402 NOTE: Beginning in January 2004, 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 2004 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.................................. 101,300 $304 $419 $639 $969 $1,445 Men..................................................... 57,034 323 467 714 1,087 1,631 Women................................................... 44,266 287 386 572 834 1,174 White................................................... 82,756 310 429 655 991 1,474 Men................................................... 47,688 328 478 729 1,121 1,660 Women................................................. 35,067 291 395 583 847 1,199 Black or African American............................... 12,014 282 366 536 788 1,101 Men................................................... 5,669 294 400 598 852 1,158 Women................................................. 6,344 272 343 504 732 1,026 Asian................................................... 4,328 321 465 720 1,157 1,730 Men................................................... 2,404 354 504 807 1,288 1,861 Women................................................. 1,924 297 422 653 1,044 1,439 Hispanic or Latino...................................... 14,324 266 320 451 678 992 Men................................................... 9,163 281 336 477 700 1,024 Women................................................. 5,160 240 302 414 621 932 EDUCATIONAL ATTAINMENT Total, 25 years and over................................ 90,337 323 462 684 1,015 1,500 Less than a high school diploma....................... 8,661 250 305 404 562 798 High school graduates, no college(1).................. 27,383 308 408 576 801 1,105 Some college or associate degree...................... 24,450 338 478 664 932 1,258 Bachelor's degree and higher(2)....................... 29,844 480 679 973 1,439 2,019 Bachelor's degree only.............................. 19,386 440 628 902 1,302 1,860 Advanced degree..................................... 10,457 596 806 1,142 1,679 2,423 Men, 25 years and over................................ 50,763 357 509 763 1,145 1,717 Less than a high school diploma..................... 5,893 279 331 455 618 884 High school graduates, no college(1)................ 15,542 345 476 657 906 1,215 Some college or associate degree.................... 12,844 384 546 760 1,043 1,422 Bachelor's degree and higher(2)..................... 16,485 508 759 1,123 1,669 2,402 Bachelor's degree only............................ 10,688 470 705 1,020 1,511 2,116 Advanced degree................................... 5,797 640 911 1,331 1,909 2,891 Women, 25 years and over.............................. 39,575 300 409 601 872 1,226 Less than a high school diploma..................... 2,768 224 270 326 425 559 High school graduates, no college(1)................ 11,841 284 362 489 653 889 Some college or associate degree.................... 11,606 310 417 580 779 1,054 Bachelor's degree and higher(2)..................... 13,359 451 621 850 1,170 1,573 Bachelor's degree only............................ 8,699 415 590 777 1,082 1,459 Advanced degree................................... 4,660 567 726 979 1,343 1,845 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 2004, 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 2003 2004 2003 2004 SEX AND AGE Total, 16 years and over.................................. 21,721 21,817 $193 $195 Men, 16 years and over................................. 6,975 6,860 188 178 16 to 24 years....................................... 3,490 3,558 148 150 25 years and over.................................... 3,484 3,302 241 226 Women, 16 years and over............................... 14,746 14,957 196 203 16 to 24 years....................................... 4,430 4,573 143 145 25 years and over.................................... 10,316 10,384 228 237 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White.................................................. 18,388 18,489 195 197 Men.................................................. 5,729 5,702 186 178 Women................................................ 12,659 12,787 199 205 Black or African American.............................. 2,068 1,953 185 192 Men.................................................. 768 663 194 183 Women................................................ 1,300 1,290 180 197 Asian.................................................. 724 781 206 193 Men.................................................. 242 291 206 183 Women................................................ 482 490 205 197 Hispanic or Latino..................................... 2,512 2,420 185 194 Men.................................................. 996 848 209 189 Women................................................ 1,516 1,571 170 197 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 2004, data reflect revised population controls used in the household survey.