Technical information: (202) 691-6378 USDL 01-368 http://www.bls.gov/cps/ For release: 10:00 A.M. EDT Media contact: 691-5902 Wednesday, October 24, 2001 USUAL WEEKLY EARNINGS OF WAGE AND SALARY WORKERS: THIRD QUARTER 2001 Median weekly earnings of the nation's 100.9 million full-time wage and salary workers were $595 in the third quarter of 2001, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This was 3.5 percent higher than a year earlier, compared with a gain of 2.7 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 $507 per week, or 75.2 percent of the $674 median for men. The female-to-male earnings ratios were higher among blacks (88.6 percent) and Hispanics (85.1 percent) than among whites (74.2 percent). (See table 1.) --Median earnings for black men working at full-time jobs were $516 per week, 74.4 percent of the median for white men ($694). The difference was much less among women, as black women's median earnings ($457) were 88.7 percent of those for their white counterparts ($515). Overall, median earnings of Hispanics who worked full time ($418) were lower than those of blacks ($489) and whites ($610). (See table 1.) --Among men, the $794 median weekly earnings level of 45- to 54-year- olds was the highest of any age group. Among women, earnings also were highest for those 45-to-54 years old ($593). (See table 2.) --Among the major occupational groups, persons employed full time in managerial and professional specialty occupations had the highest median weekly earnings--$1,053 for men and $727 for women. Men and women in service and farm jobs earned the least. (See table 3.) --Full-time workers age 25 and over without a high school diploma had median weekly earnings of $381, compared with $522 for high school graduates (no college) and $931 for college graduates. Among college graduates with advanced degrees (professional or master's degree and above), the highest- earning 10 percent of male workers made $2,432 or more per week, compared with $1,672 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 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). - 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 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 2000 2001 III III III III 2000 2001 2000 2001 SEX AND AGE Total, 16 years and over.................................. 101,462 100,851 $575 $595 $321 $323 Men, 16 years and over................................. 57,430 56,865 640 674 356 366 16 to 24 years....................................... 7,719 7,303 378 389 211 211 25 years and over.................................... 49,711 49,562 700 725 390 394 Women, 16 years and over............................... 44,031 43,987 491 507 273 275 16 to 24 years....................................... 5,872 5,555 335 350 187 190 25 years and over.................................... 38,160 38,432 519 542 289 294 RACE, HISPANIC ORIGIN, AND SEX White.................................................. 83,623 83,196 590 610 329 331 Men.................................................. 48,505 48,118 664 694 370 377 Women................................................ 35,117 35,078 497 515 277 279 Black.................................................. 12,776 12,642 463 489 258 266 Men.................................................. 6,143 5,953 492 516 274 280 Women................................................ 6,633 6,689 434 457 242 248 Hispanic origin........................................ 11,767 11,712 402 418 224 227 Men.................................................. 7,271 7,159 416 450 232 244 Women................................................ 4,496 4,552 377 383 210 208 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. Table 2. Median usual weekly earnings of full-time wage and salary workers by age, race, Hispanic origin, and sex, third quarter 2001 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......................................... 100,851 $595 56,865 $674 43,987 $507 16 to 24 years.......................................... 12,858 373 7,303 389 5,555 350 16 to 19 years........................................ 2,852 306 1,628 321 1,224 291 20 to 24 years........................................ 10,006 393 5,675 408 4,331 375 25 years and over....................................... 87,994 636 49,562 725 38,432 542 25 to 54 years........................................ 76,715 638 43,252 722 33,463 548 25 to 34 years...................................... 24,579 582 14,054 633 10,525 512 35 to 44 years...................................... 28,402 662 16,222 759 12,180 546 45 to 54 years...................................... 23,734 691 12,976 794 10,758 593 55 years and over..................................... 11,279 620 6,310 751 4,969 511 55 to 64 years...................................... 9,756 643 5,398 769 4,358 524 65 years and over................................... 1,523 467 912 555 611 360 White 16 years and over......................................... 83,196 610 48,118 694 35,078 515 16 to 24 years.......................................... 10,876 378 6,353 395 4,523 353 25 years and over....................................... 72,320 659 41,765 748 30,555 558 25 to 54 years........................................ 62,689 661 36,260 744 26,429 565 55 years and over..................................... 9,631 649 5,505 778 4,126 519 Black 16 years and over......................................... 12,642 489 5,953 516 6,689 457 16 to 24 years.......................................... 1,494 333 677 336 817 330 25 years and over....................................... 11,148 510 5,276 553 5,872 484 25 to 54 years........................................ 9,949 511 4,707 557 5,242 486 55 years and over..................................... 1,198 485 569 520 630 443 Hispanic origin 16 years and over......................................... 11,712 418 7,159 450 4,552 383 16 to 24 years.......................................... 1,999 327 1,300 341 698 311 25 years and over....................................... 9,713 448 5,859 488 3,854 402 25 to 54 years........................................ 8,837 453 5,353 490 3,484 404 55 years and over..................................... 876 406 506 462 370 394 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. 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 2000 2001 2000 2001 TOTAL Managerial and professional specialty.................... 31,849 32,298 $833 $867 Executive, administrative, and managerial.............. 15,482 16,149 850 884 Professional specialty................................. 16,367 16,149 817 854 Technical, sales, and administrative support............. 28,620 28,546 504 516 Technicians and related support........................ 3,780 3,837 654 683 Sales occupations...................................... 10,237 10,323 557 568 Administrative support, including clerical............. 14,603 14,386 463 479 Service occupations...................................... 11,035 11,608 352 368 Private household...................................... 351 354 252 248 Protective service..................................... 2,147 2,163 638 609 Service, except private household and protective....... 8,537 9,091 324 345 Precision production, craft, and repair.................. 12,336 12,236 612 627 Mechanics and repairers................................ 4,287 4,160 648 670 Construction trades.................................... 4,553 4,649 592 611 Other precision production, craft, and repair.......... 3,495 3,427 599 614 Operators, fabricators, and laborers..................... 15,740 14,504 433 475 Machine operators, assemblers, and inspectors.......... 6,631 5,957 423 462 Transportation and material moving occupations......... 4,724 4,686 532 587 Handlers, equipment cleaners, helpers, and laborers.... 4,386 3,862 380 390 Farming, forestry, and fishing........................... 1,881 1,658 345 347 Men Managerial and professional specialty.................... 16,144 16,476 994 1,053 Executive, administrative, and managerial.............. 8,319 8,631 1,026 1,077 Professional specialty................................. 7,824 7,845 962 1,026 Technical, sales, and administrative support............. 11,072 11,054 651 664 Technicians and related support........................ 1,941 1,933 766 786 Sales occupations...................................... 5,564 5,657 691 683 Administrative support, including clerical............. 3,567 3,464 545 552 Service occupations...................................... 5,230 5,424 411 420 Private household...................................... 6 12 (1) (1) Protective service..................................... 1,796 1,781 678 624 Service, except private household and protective....... 3,427 3,631 347 366 Precision production, craft, and repair.................. 11,285 11,149 621 645 Mechanics and repairers................................ 4,082 3,927 645 672 Construction trades.................................... 4,461 4,558 595 613 Other precision production, craft, and repair.......... 2,741 2,664 639 669 Operators, fabricators, and laborers..................... 12,130 11,346 475 508 Machine operators, assemblers, and inspectors.......... 4,205 3,888 480 513 Transportation and material moving occupations......... 4,341 4,304 552 603 Handlers, equipment cleaners, helpers, and laborers.... 3,584 3,153 394 402 Farming, forestry, and fishing........................... 1,570 1,416 362 361 Women Managerial and professional specialty.................... 15,705 15,823 706 727 Executive, administrative, and managerial.............. 7,163 7,518 682 709 Professional specialty................................. 8,543 8,304 725 738 Technical, sales, and administrative support............. 17,548 17,492 449 465 Technicians and related support........................ 1,839 1,905 539 583 Sales occupations...................................... 4,673 4,665 413 421 Administrative support, including clerical............. 11,036 10,922 443 461 Service occupations...................................... 5,805 6,184 316 334 Private household...................................... 345 342 251 241 Protective service..................................... 351 382 502 501 Service, except private household and protective....... 5,110 5,461 316 331 Precision production, craft, and repair.................. 1,051 1,087 466 489 Mechanics and repairers................................ 205 233 695 620 Construction trades.................................... 92 90 (1) (1) Other precision production, craft, and repair.......... 754 764 423 465 Operators, fabricators, and laborers..................... 3,611 3,159 355 377 Machine operators, assemblers, and inspectors.......... 2,426 2,069 363 379 Transportation and material moving occupations......... 383 381 382 440 Handlers, equipment cleaners, helpers, and laborers.... 802 708 321 347 Farming, forestry, and fishing........................... 311 242 291 299 1 Data not shown where base is less than 100,000. Table 4. Quartiles and selected deciles of usual weekly earnings of full-time wage and salary workers by selected characteristics, third quarter 2001 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.................................. 100,851 $288 $392 $595 $897 $1,355 Men..................................................... 56,865 309 435 674 1,014 1,520 Women................................................... 43,987 267 351 507 745 1,090 White................................................... 83,196 292 402 610 921 1,386 Men................................................... 48,118 314 451 694 1,043 1,547 Women................................................. 35,078 272 358 515 755 1,114 Black................................................... 12,642 262 338 489 708 1,014 Men................................................... 5,953 284 369 516 758 1,127 Women................................................. 6,689 247 319 457 654 929 Hispanic................................................ 11,712 244 305 418 631 941 Men................................................... 7,159 259 319 450 683 1,012 Women................................................. 4,552 230 285 383 557 809 EDUCATIONAL ATTAINMENT Total, 25 years and over................................ 87,994 305 424 636 951 1,419 Less than a high school diploma....................... 8,399 236 290 381 515 716 High school graduates, no college..................... 26,694 290 379 522 741 1,007 Some college or associate degree...................... 25,108 322 442 621 869 1,208 College graduates, total.............................. 27,792 465 650 931 1,382 1,905 Bachelor's degree only.............................. 18,598 430 613 870 1,278 1,809 Advanced degree..................................... 9,194 561 743 1,078 1,549 2,124 Men, 25 years and over................................ 49,562 340 488 725 1,096 1,578 Less than a high school diploma..................... 5,484 255 311 416 584 788 High school graduates, no college................... 14,856 329 441 620 845 1,144 Some college or associate degree.................... 13,488 380 515 724 988 1,340 College graduates, total............................ 15,735 505 727 1,098 1,562 2,204 Bachelor's degree only............................ 10,535 479 678 1,006 1,469 2,001 Advanced degree................................... 5,199 599 860 1,261 1,768 2,432 Women, 25 years and over.............................. 38,432 280 375 542 778 1,142 Less than a high school diploma..................... 2,915 212 258 317 414 523 High school graduates, no college................... 11,838 261 330 440 593 778 Some college or associate degree.................... 11,621 292 385 521 714 962 College graduates, total............................ 12,058 426 596 788 1,128 1,498 Bachelor's degree only............................ 8,063 392 559 750 1,035 1,383 Advanced degree................................... 3,995 518 674 886 1,251 1,672 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. 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 2000 2001 2000 2001 SEX AND AGE Total, 16 years and over.................................. 19,103 19,747 $174 $189 Men, 16 years and over................................. 5,721 6,253 159 180 16 to 24 years....................................... 3,169 3,321 137 157 25 years and over.................................... 2,552 2,933 211 217 Women, 16 years and over............................... 13,382 13,494 183 192 16 to 24 years....................................... 4,168 4,214 140 150 25 years and over.................................... 9,214 9,280 210 218 RACE, HISPANIC ORIGIN, AND SEX White.................................................. 16,578 16,987 176 190 Men.................................................. 4,871 5,223 159 182 Women................................................ 11,707 11,764 185 194 Black.................................................. 1,747 1,859 160 172 Men.................................................. 576 711 158 162 Women................................................ 1,171 1,148 161 177 Hispanic origin........................................ 1,634 1,926 159 190 Men.................................................. 483 685 161 194 Women................................................ 1,151 1,241 159 188 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.