Technical information: (202) 691-6378 USDL 06-1819 http://www.bls.gov/cps/ For release: 10:00 A.M. EDT Media contact: 691-5902 Thursday, October 19, 2006 USUAL WEEKLY EARNINGS OF WAGE AND SALARY WORKERS: THIRD QUARTER 2006 Median weekly earnings of the nation’s 108.2 million full-time wage and salary workers were $675 in the third quarter of 2006, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This was 4.0 percent higher than a year earlier, compared with a gain of 3.3 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 third-quarter data are: --Women who usually worked full time had median earnings of $599 per week, or 80.0 percent of the $749 median for men. The female-to- male earnings ratios were higher among Hispanics or Latinos (87.3 percent), Asians (84.9 percent), and blacks (83.8 percent) than among whites (79.6 percent). (See table 1.) --Median earnings for black men working at full-time jobs were $610 per week, 79.8 percent of the median for white men ($764). The difference was less among women, as black women’s median earnings ($511) were 84.0 percent of those for their white counterparts ($608). Overall, median earnings of Hispanics or Latinos who worked full time ($485) were lower than those of blacks ($555), whites ($692), and Asians ($798). (See table 1.) --For both men and women, median weekly earnings were highest for those age 45 to 54 ($894 and $662, respectively) and age 55 to 64 ($886 and $661, respectively). (See table 2.) --Among the major occupational groups, persons employed full time in man- agerial, professional, and related occupations had the highest median weekly earnings--$1,147 for men and $856 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 $602 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 master’s degree and above), the highest earning 10 percent of male workers made $2,882 or more per week compared with $2,089 or more for their female counterparts. (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 III III 2005 2006 III III III III 2005 2006 2005 2006 SEX AND AGE Total, 16 years and over.................................. 105,428 108,169 $649 $675 $318 $320 Men, 16 years and over................................. 59,778 60,996 716 749 351 355 16 to 24 years....................................... 7,017 7,313 407 409 200 194 25 years and over.................................... 52,761 53,683 768 808 377 383 Women, 16 years and over............................... 45,649 47,173 585 599 287 284 16 to 24 years....................................... 5,022 5,273 379 393 186 187 25 years and over.................................... 40,627 41,901 615 629 301 299 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White.................................................. 85,558 87,956 667 692 327 328 Men.................................................. 49,557 50,852 737 764 361 362 Women................................................ 36,001 37,103 594 608 291 289 Black or African American.............................. 12,714 12,857 520 555 255 263 Men.................................................. 6,159 6,070 533 610 261 289 Women................................................ 6,555 6,787 509 511 250 243 Asian.................................................. 4,674 4,873 761 798 373 378 Men.................................................. 2,665 2,703 834 857 409 407 Women................................................ 2,009 2,170 659 728 323 345 Hispanic or Latino ethnicity........................... 14,913 15,886 462 485 226 230 Men.................................................. 9,581 10,096 483 504 237 239 Women................................................ 5,332 5,790 418 440 205 209 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, third 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......................................... 108,169 $675 60,996 $749 47,173 $599 16 to 24 years.......................................... 12,586 403 7,313 409 5,273 393 16 to 19 years........................................ 2,393 323 1,403 340 990 308 20 to 24 years........................................ 10,193 419 5,910 422 4,283 414 25 years and over....................................... 95,584 726 53,683 808 41,901 629 25 to 54 years........................................ 79,768 724 45,119 800 34,649 627 25 to 34 years...................................... 25,849 630 14,916 683 10,934 585 35 to 44 years...................................... 27,379 758 15,717 854 11,662 651 45 to 54 years...................................... 26,540 782 14,487 894 12,053 662 55 years and over..................................... 15,816 741 8,564 867 7,252 641 55 to 64 years...................................... 13,644 765 7,323 886 6,320 661 65 years and over................................... 2,172 581 1,241 649 931 516 White 16 years and over......................................... 87,956 692 50,852 764 37,103 608 16 to 24 years.......................................... 10,389 404 6,189 411 4,201 391 25 years and over....................................... 77,566 743 44,664 830 32,903 643 25 to 54 years........................................ 64,216 739 37,282 820 26,934 640 55 years and over..................................... 13,350 760 7,382 889 5,969 656 Black or African American 16 years and over......................................... 12,857 555 6,070 610 6,787 511 16 to 24 years.......................................... 1,466 380 712 373 754 386 25 years and over....................................... 11,391 588 5,358 647 6,033 528 25 to 54 years........................................ 9,831 588 4,664 645 5,167 523 55 years and over..................................... 1,560 592 694 678 866 576 Asian 16 years and over......................................... 4,873 798 2,703 857 2,170 728 16 to 24 years.......................................... 336 480 177 438 159 513 25 years and over....................................... 4,536 839 2,526 893 2,010 761 25 to 54 years........................................ 3,892 855 2,167 905 1,725 787 55 years and over..................................... 644 727 359 831 285 590 Hispanic or Latino ethnicity 16 years and over......................................... 15,886 485 10,096 504 5,790 440 16 to 24 years.......................................... 2,482 374 1,658 384 823 350 25 years and over....................................... 13,405 507 8,438 534 4,967 462 25 to 54 years........................................ 12,115 506 7,707 533 4,408 462 55 years and over..................................... 1,290 515 731 536 559 464 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 III III III III 2005 2006 2005 2006 TOTAL Management, professional, and related occupations.............. 37,060 37,876 $935 $974 Management, business, and financial operations occupations... 14,891 15,319 992 1,046 Professional and related occupations......................... 22,168 22,557 897 935 Service occupations............................................ 14,648 15,413 410 423 Sales and office occupations................................... 25,936 26,206 570 592 Sales and related occupations................................ 10,352 10,657 606 627 Office and administrative support occupations................ 15,584 15,549 550 580 Natural resources, construction, and maintenance occupations... 12,288 13,104 618 663 Farming, fishing, and forestry occupations................... 903 881 352 371 Construction and extraction occupations...................... 7,031 7,331 604 637 Installation, maintenance, and repair occupations............ 4,354 4,892 705 743 Production, transportation, and material moving occupations.... 15,496 15,571 524 569 Production occupations....................................... 8,453 8,491 516 578 Transportation and material moving occupations............... 7,043 7,079 541 558 Men Management, professional, and related occupations.............. 18,305 18,612 1,103 1,147 Management, business, and financial operations occupations... 8,186 8,270 1,147 1,209 Professional and related occupations......................... 10,120 10,342 1,057 1,104 Service occupations............................................ 7,262 7,566 464 494 Sales and office occupations................................... 10,153 10,117 682 718 Sales and related occupations................................ 5,792 5,924 748 770 Office and administrative support occupations................ 4,361 4,193 616 635 Natural resources, construction, and maintenance occupations... 11,734 12,516 622 672 Farming, fishing, and forestry occupations................... 719 713 361 384 Construction and extraction occupations...................... 6,867 7,157 605 642 Installation, maintenance, and repair occupations............ 4,148 4,647 704 745 Production, transportation, and material moving occupations.... 12,324 12,185 577 615 Production occupations....................................... 6,090 5,994 594 659 Transportation and material moving occupations............... 6,234 6,191 556 587 Women Management, professional, and related occupations.............. 18,754 19,264 812 856 Management, business, and financial operations occupations... 6,706 7,049 860 905 Professional and related occupations......................... 12,049 12,215 785 827 Service occupations............................................ 7,385 7,847 383 391 Sales and office occupations................................... 15,783 16,089 514 541 Sales and related occupations................................ 4,559 4,733 457 484 Office and administrative support occupations................ 11,223 11,355 530 563 Natural resources, construction, and maintenance occupations... 554 588 471 518 Farming, fishing, and forestry occupations................... 184 169 324 319 Construction and extraction occupations...................... 164 174 459 527 Installation, maintenance, and repair occupations............ 207 245 720 725 Production, transportation, and material moving occupations.... 3,173 3,386 418 432 Production occupations....................................... 2,363 2,498 416 441 Transportation and material moving occupations............... 810 888 429 414 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, third 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.................................. 108,169 $317 $441 $675 $1,023 $1,536 Men..................................................... 60,996 344 487 749 1,144 1,731 Women................................................... 47,173 296 404 599 893 1,300 White................................................... 87,956 321 454 692 1,048 1,555 Men................................................... 50,852 350 496 764 1,162 1,743 Women................................................. 37,103 297 409 608 898 1,316 Black or African American............................... 12,857 295 390 555 847 1,178 Men................................................... 6,070 313 413 610 904 1,269 Women................................................. 6,787 286 372 511 768 1,134 Asian................................................... 4,873 371 514 798 1,304 1,888 Men................................................... 2,703 381 554 857 1,406 1,919 Women................................................. 2,170 352 492 728 1,154 1,737 Hispanic or Latino ethnicity............................ 15,886 280 348 485 709 1,060 Men................................................... 10,096 290 371 504 746 1,123 Women................................................. 5,790 262 315 440 635 961 EDUCATIONAL ATTAINMENT Total, 25 years and over................................ 95,584 344 485 726 1,087 1,603 Less than a high school diploma....................... 9,295 262 320 420 588 805 High school graduates, no college (1)................. 27,792 323 423 602 856 1,150 Some college or associate degree...................... 26,256 363 493 701 971 1,330 Bachelor's degree and higher (2)...................... 32,240 511 728 1,047 1,557 2,209 Bachelor's degree only.............................. 20,772 483 673 979 1,455 1,935 Advanced degree..................................... 11,469 605 838 1,171 1,783 2,509 Men, 25 years and over................................ 53,683 382 534 808 1,201 1,780 Less than a high school diploma..................... 6,185 284 354 468 655 873 High school graduates, no college (1)............... 16,334 368 492 694 957 1,246 Some college or associate degree.................... 13,541 417 577 808 1,102 1,467 Bachelor's degree and higher (2).................... 17,623 575 801 1,191 1,765 2,406 Bachelor's degree only............................ 11,377 528 747 1,126 1,629 2,198 Advanced degree................................... 6,245 642 923 1,403 1,922 2,882 Women, 25 years and over.............................. 41,901 310 427 629 935 1,362 Less than a high school diploma..................... 3,110 236 287 363 472 599 High school graduates, no college (1)............... 11,459 290 377 501 676 920 Some college or associate degree.................... 12,715 320 430 603 833 1,104 Bachelor's degree and higher (2).................... 14,618 477 658 920 1,301 1,877 Bachelor's degree only............................ 9,394 441 616 851 1,223 1,738 Advanced degree................................... 5,223 578 765 1,022 1,412 2,089 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 III III III III 2005 2006 2005 2006 SEX AND AGE Total, 16 years and over.................................. 21,465 20,659 $206 $211 Men, 16 years and over................................. 6,641 6,579 196 198 16 to 24 years....................................... 3,348 3,352 163 161 25 years and over.................................... 3,293 3,228 257 259 Women, 16 years and over............................... 14,824 14,079 210 218 16 to 24 years....................................... 4,800 4,365 159 160 25 years and over.................................... 10,024 9,715 246 256 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White.................................................. 18,076 17,318 207 213 Men.................................................. 5,546 5,337 199 199 Women................................................ 12,530 11,981 212 221 Black or African American.............................. 2,001 2,032 193 202 Men.................................................. 651 767 185 200 Women................................................ 1,350 1,266 197 203 Asian.................................................. 845 796 209 216 Men.................................................. 275 287 183 192 Women................................................ 571 509 223 228 Hispanic or Latino ethnicity........................... 2,497 2,220 198 200 Men.................................................. 833 733 211 202 Women................................................ 1,664 1,487 191 200 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.