Technical information: (202) 691-6378 USDL 05-1977 http://www.bls.gov/cps/ For release: 10:00 A.M. EDT Media contact: 691-5902 Thursday, October 20, 2005 USUAL WEEKLY EARNINGS OF WAGE AND SALARY WORKERS: THIRD QUARTER 2005 Median weekly earnings of the nation's 105.4 million full-time wage and salary workers were $649 in the third quarter of 2005, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This was 2.7 percent higher than a year earlier, compared with a gain of 3.8 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 third-quarter data are: --Women who usually worked full time had median earnings of $585 per week, or 81.7 percent of the $716 median for men. The female-to-male earnings ratios were higher among blacks (95.5 percent) and Hispanics or Latinos (86.5 percent) than among whites (80.6 percent) or Asians (79.0 percent). (See table 1.) --Median earnings for black men working at full-time jobs were $533 per week, 72.3 percent of the median for white men ($737). The difference was less among women, as black women's median earnings ($509) were 85.7 percent of those for their white counterparts ($594). Overall, median earnings of Hispanics or Latinos who worked full time ($462) were lower than those of blacks ($520), whites ($667), and Asians ($761). (See table 1.) --Among men, those age 55 to 64 and age 45 to 54 had the highest median weekly earnings, $858 and $848, respectively. Among women, earnings were highest for 45- to 54-year-olds and 55- to 64-year-olds, $640 and $639, respectively. (See table 2.) --Among the major occupational groups, persons employed full time in management, professional, and related occupations had the highest median weekly earnings--$1,103 for men and $812 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 $413, compared with $583 for high school graduates (no college) and $1,014 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 $2,729 or more per week, compared with $1,858 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 2004 2005 III III III III 2004 2005 2004 2005 SEX AND AGE Total, 16 years and over.................................. 102,325 105,428 $632 $649 $322 $318 Men, 16 years and over................................. 57,898 59,778 704 716 358 351 16 to 24 years....................................... 6,865 7,017 400 407 204 200 25 years and over.................................... 51,033 52,761 759 768 386 377 Women, 16 years and over............................... 44,427 45,649 571 585 291 287 16 to 24 years....................................... 5,083 5,022 371 379 189 186 25 years and over.................................... 39,344 40,627 602 615 306 301 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White.................................................. 83,367 85,558 651 667 331 327 Men.................................................. 48,172 49,557 721 737 367 361 Women................................................ 35,195 36,001 583 594 297 291 Black or African American.............................. 12,136 12,714 531 520 270 255 Men.................................................. 5,757 6,159 570 533 290 261 Women................................................ 6,379 6,555 508 509 258 250 Asian.................................................. 4,408 4,674 701 761 357 373 Men.................................................. 2,581 2,665 801 834 408 409 Women................................................ 1,827 2,009 589 659 300 323 Hispanic or Latino..................................... 14,263 14,913 458 462 233 226 Men.................................................. 9,155 9,581 477 483 243 237 Women................................................ 5,108 5,332 430 418 219 205 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 2005, 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 2005 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......................................... 105,428 $649 59,778 $716 45,649 $585 16 to 24 years.......................................... 12,039 395 7,017 407 5,022 379 16 to 19 years........................................ 2,283 310 1,362 322 921 293 20 to 24 years........................................ 9,756 415 5,655 427 4,101 401 25 years and over....................................... 93,388 697 52,761 768 40,627 615 25 to 54 years........................................ 78,744 691 44,605 760 34,138 613 25 to 34 years...................................... 25,289 615 14,931 643 10,357 584 35 to 44 years...................................... 27,582 730 15,697 822 11,886 622 45 to 54 years...................................... 25,872 745 13,977 848 11,895 640 55 years and over..................................... 14,645 726 8,156 837 6,489 621 55 to 64 years...................................... 12,731 741 6,988 858 5,743 639 65 years and over................................... 1,914 582 1,167 650 746 500 White 16 years and over......................................... 85,558 667 49,557 737 36,001 594 16 to 24 years.......................................... 9,920 398 5,906 411 4,015 379 25 years and over....................................... 75,638 717 43,652 792 31,986 625 25 to 54 years........................................ 63,356 712 36,706 782 26,650 623 55 years and over..................................... 12,282 743 6,946 871 5,336 636 Black or African American 16 years and over......................................... 12,714 520 6,159 533 6,555 509 16 to 24 years.......................................... 1,316 367 669 366 647 368 25 years and over....................................... 11,398 551 5,490 571 5,908 531 25 to 54 years........................................ 9,911 550 4,773 567 5,138 534 55 years and over..................................... 1,487 555 717 603 770 509 Asian 16 years and over......................................... 4,674 761 2,665 834 2,009 659 16 to 24 years.......................................... 349 408 194 405 155 412 25 years and over....................................... 4,325 790 2,471 872 1,855 690 25 to 54 years........................................ 3,722 795 2,125 871 1,597 692 55 years and over..................................... 603 770 345 877 257 684 Hispanic or Latino 16 years and over......................................... 14,913 462 9,581 483 5,332 418 16 to 24 years.......................................... 2,176 375 1,455 380 721 355 25 years and over....................................... 12,738 484 8,126 502 4,611 434 25 to 54 years........................................ 11,606 484 7,447 502 4,160 433 55 years and over..................................... 1,131 488 679 499 452 455 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 2005, 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 2004 2005 2004 2005 TOTAL Management, professional, and related occupations.............. 35,684 37,060 $916 $935 Management, business, and financial operations occupations... 14,421 14,891 958 992 Professional and related occupations......................... 21,263 22,168 886 897 Service occupations............................................ 14,188 14,648 411 410 Sales and office occupations................................... 25,399 25,936 566 570 Sales and related occupations................................ 10,056 10,352 598 606 Office and administrative support occupations................ 15,343 15,584 549 550 Natural resources, construction, and maintenance occupations... 11,680 12,288 613 618 Farming, fishing, and forestry occupations................... 777 903 363 352 Construction and extraction occupations...................... 6,635 7,031 602 604 Installation, maintenance, and repair occupations............ 4,268 4,354 693 705 Production, transportation, and material moving occupations.... 15,375 15,496 520 524 Production occupations....................................... 8,561 8,453 519 516 Transportation and material moving occupations............... 6,814 7,043 521 541 Men Management, professional, and related occupations.............. 17,719 18,305 1,111 1,103 Management, business, and financial operations occupations... 7,926 8,186 1,169 1,147 Professional and related occupations......................... 9,793 10,120 1,051 1,057 Service occupations............................................ 7,188 7,262 470 464 Sales and office occupations................................... 9,691 10,153 668 682 Sales and related occupations................................ 5,701 5,792 733 748 Office and administrative support occupations................ 3,990 4,361 606 616 Natural resources, construction, and maintenance occupations... 11,247 11,734 618 622 Farming, fishing, and forestry occupations................... 655 719 366 361 Construction and extraction occupations...................... 6,523 6,867 603 605 Installation, maintenance, and repair occupations............ 4,068 4,148 699 704 Production, transportation, and material moving occupations.... 12,054 12,324 575 577 Production occupations....................................... 6,058 6,090 591 594 Transportation and material moving occupations............... 5,995 6,234 548 556 Women Management, professional, and related occupations.............. 17,965 18,754 776 812 Management, business, and financial operations occupations... 6,494 6,706 799 860 Professional and related occupations......................... 11,470 12,049 767 785 Service occupations............................................ 7,001 7,385 382 383 Sales and office occupations................................... 15,708 15,783 516 514 Sales and related occupations................................ 4,355 4,559 456 457 Office and administrative support occupations................ 11,354 11,223 533 530 Natural resources, construction, and maintenance occupations... 433 554 434 471 Farming, fishing, and forestry occupations................... 121 184 357 324 Construction and extraction occupations...................... 112 164 569 459 Installation, maintenance, and repair occupations............ 199 207 506 720 Production, transportation, and material moving occupations.... 3,321 3,173 398 418 Production occupations....................................... 2,502 2,363 394 416 Transportation and material moving occupations............... 819 810 406 429 NOTE: Beginning in January 2005, 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 2005 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.................................. 105,428 $306 $422 $649 $994 $1,484 Men..................................................... 59,778 323 465 716 1,098 1,667 Women................................................... 45,649 289 392 585 862 1,246 White................................................... 85,558 311 435 667 1,016 1,524 Men................................................... 49,557 331 480 737 1,131 1,732 Women................................................. 36,001 290 398 594 873 1,264 Black or African American............................... 12,714 281 368 520 783 1,129 Men................................................... 6,159 283 379 533 815 1,136 Women................................................. 6,555 279 359 509 760 1,123 Asian................................................... 4,674 335 488 761 1,172 1,762 Men................................................... 2,665 373 527 834 1,333 1,917 Women................................................. 2,009 304 433 659 993 1,440 Hispanic or Latino...................................... 14,913 269 329 462 674 1,016 Men................................................... 9,581 283 347 483 700 1,067 Women................................................. 5,332 244 307 418 628 919 EDUCATIONAL ATTAINMENT Total, 25 years and over................................ 93,388 327 464 697 1,046 1,547 Less than a high school diploma....................... 9,302 257 311 413 565 782 High school graduates, no college(1).................. 27,640 308 408 583 815 1,117 Some college or associate degree...................... 25,655 345 476 678 950 1,290 Bachelor's degree and higher(2)....................... 30,791 490 705 1,014 1,504 2,092 Bachelor's degree only.............................. 19,875 457 650 941 1,384 1,918 Advanced degree..................................... 10,916 597 809 1,157 1,694 2,320 Men, 25 years and over................................ 52,761 355 505 768 1,158 1,760 Less than a high school diploma..................... 6,381 281 336 461 621 851 High school graduates, no college(1)................ 16,126 341 465 650 908 1,210 Some college or associate degree.................... 13,390 387 541 764 1,052 1,424 Bachelor's degree and higher(2)..................... 16,865 524 786 1,168 1,759 2,401 Bachelor's degree only............................ 10,982 496 734 1,081 1,587 2,264 Advanced degree................................... 5,883 625 923 1,382 1,912 2,729 Women, 25 years and over.............................. 40,627 304 415 615 905 1,290 Less than a high school diploma..................... 2,922 227 281 343 446 577 High school graduates, no college(1)................ 11,514 281 366 491 669 919 Some college or associate degree.................... 12,265 319 420 594 815 1,109 Bachelor's degree and higher(2)..................... 13,927 458 637 874 1,223 1,641 Bachelor's degree only............................ 8,893 427 596 812 1,143 1,554 Advanced degree................................... 5,033 580 744 992 1,359 1,858 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 2005, 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 2004 2005 2004 2005 SEX AND AGE Total, 16 years and over.................................. 21,403 21,465 $199 $206 Men, 16 years and over................................. 6,774 6,641 190 196 16 to 24 years....................................... 3,407 3,348 159 163 25 years and over.................................... 3,367 3,293 232 257 Women, 16 years and over............................... 14,629 14,824 203 210 16 to 24 years....................................... 4,423 4,800 152 159 25 years and over.................................... 10,206 10,024 236 246 RACE, HISPANIC OR LATINO ETHNICITY, AND SEX White.................................................. 18,038 18,076 200 207 Men.................................................. 5,629 5,546 186 199 Women................................................ 12,408 12,530 206 212 Black or African American.............................. 2,026 2,001 189 193 Men.................................................. 702 651 191 185 Women................................................ 1,324 1,350 188 197 Asian.................................................. 842 845 217 209 Men.................................................. 275 275 231 183 Women................................................ 567 571 206 223 Hispanic or Latino..................................... 2,416 2,497 189 198 Men.................................................. 808 833 192 211 Women................................................ 1,607 1,664 187 191 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 2005, data reflect revised population controls used in the household survey.