Full text of June 1999 : Text File, USDL 99-195
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WIRE EMBARGO UNTIL
10:00 A.M. (EDT) THURSDAY,
JULY 15, 1999
REAL EARNINGS IN JUNE 1999
Real average weekly earnings increased by 0.7 percent from May to June
after seasonal adjustment, according to preliminary data released today by the
Bureau of Labor Statistics of the U.S. Department of Labor. This rise stemmed
from a 0.3 percent increase in average weekly hours coupled with a 0.4 percent
gain in average hourly earnings. The Consumer Price Index for Urban Wage
Earners and Clerical Workers (CPI-W) was flat.
Data on average weekly earnings are collected from the payroll reports of
private nonfarm establishments. Earnings of both full-time and part-time
workers holding production or nonsupervisory jobs are included. Real average
weekly earnings are calculated by adjusting earnings in current dollars for
changes in the CPI-W.
Average weekly earnings rose by 3.4 percent, seasonally adjusted, between
June of 1998 and 1999. After adjustment for inflation, average weekly earnings
grew by 1.3 percent. Before adjustment for seasonal change and deflation by
the CPI-W, average weekly earnings were $454.64 in June 1999, compared with
$440.00 a year earlier.
_____________________________
Real Earnings for July 1999 will be released on Tuesday, August 17,
1999.
Table A. Composition of change in real earnings of production or
nonsupervisory workers on private nonfarm payrolls
________________________________________________________________________
| | | | |
| Average | Average | Average | The | Real
| hourly | weekly | weekly | Consumer | average
Year | earnings | hours | earnings | Price | weekly
and | | | | Index1/ | earnings
month |___________|___________|___________|___________|___________
|
| Percent change from preceding month, seasonally adjusted
____________|___________________________________________________________
| | | | |
1998: | | | | |
June | 0.2 | -0.3 | -0.1 | 0.1 | -0.1
July | .3 | .0 | .3 | .2 | .1
Aug. | .4 | .0 | .4 | .1 | .3
Sept. | .2 | -.3 | -.1 | .1 | -.1
Oct. | .2 | .3 | .5 | .2 | .3
Nov. | .2 | .0 | .2 | .2 | .1
Dec. | .3 | .0 | .3 | .2 | .1
1999: | | | | |
Jan. | .5 | .0 | .5 | .2 | .2
Feb. | .2 | .0 | .2 | .0 | .2
Mar. | .4 | -.3 | .1 | .1 | (2)
Apr. | .2 | -.3 | -.1 | .7 | -.8
Mayp | .3 | .0 | .3 | .0 | .3
Junep | .4 | .3 | .7 | .0 | .7
____________|___________|___________|___________|___________|___________
1/ The deflator for the constant-dollar series presented in this
release is the Consumer Price Index for Urban Wage Earners and Clerical
Workers (CPI-W).
p = preliminary.
2 Less than 0.05 percent.
Table B. Percent change in earnings from the same month a year ago for
production or nonsupervisory workers on private nonfarm payrolls,
seasonally adjusted
_________________________________________________________________________
| |
| Average hourly | Average weekly
| earnings | earnings
Year |_____________________________|_____________________________
and | | | |
month | Current | Constant | Current | Constant
| dollars | (1982) | dollars | (1982)
| | dollars1/ | | dollars1/
_____________|______________|______________|______________|______________
| | | |
1998: | | | |
June | 4.2 | 2.8 | 4.6 | 3.1
July | 4.3 | 2.8 | 4.6 | 3.1
Aug. | 4.2 | 2.8 | 3.9 | 2.5
Sept. | 4.1 | 2.9 | 3.8 | 2.6
Oct. | 3.9 | 2.6 | 3.9 | 2.6
Nov. | 3.8 | 2.4 | 3.5 | 2.1
Dec. | 3.8 | 2.2 | 3.8 | 2.3
1999: | | | |
Jan. | 4.0 | 2.2 | 3.4 | 1.7
Feb. | 3.7 | 2.0 | 3.4 | 1.7
Mar. | 3.7 | 1.8 | 3.4 | 1.6
Apr. | 3.5 | 1.3 | 2.9 | .7
Mayp | 3.5 | 1.4 | 2.6 | .6
Junep | 3.7 | 1.7 | 3.4 | 1.3
_____________|______________|______________|______________|______________
1/ The deflator for the constant-dollar series presented in this release
is the Consumer Price Index for Urban Wage Earners and Clerical Workers
(CPI-W).
p = preliminary.
Table 1. Earnings of production or nonsupervisory workers on private
nonfarm payrolls in current and constant dollars1/ by industry, not
seasonally adjusted
____________________________________________________________________
|
| Average hourly earnings
|_________________________________________
| | | |
Industry | | | | Percent
| June | May | June | change
| 1998 | 1999p| 1999p| June 1998 -
| | | | June 1999
__________________________|________|________|________|______________
| | | |
Total private:2/ | | | |
Current dollars..........| $12.68 | $13.19 | $13.14 | 3.6
Constant (1982) dollars..| 7.69 | 7.85 | 7.82 | 1.7
| | | |
Goods-producing: | | | |
Current dollars..........| 14.28 | 14.75 | 14.83 | 3.9
Constant (1982) dollars..| 8.67 | 8.78 | 8.83 | 1.8
| | | |
Mining: | | | |
Current dollars..........| 16.68 | 16.99 | 17.01 | 2.0
Constant (1982) dollars..| 10.12 | 10.11 | 10.13 | .1
| | | |
Construction: | | | |
Current dollars..........| 16.47 | 17.02 | 17.11 | 3.9
Constant (1982) dollars..| 9.99 | 10.13 | 10.18 | 1.9
| | | |
Manufacturing: | | | |
Current dollars..........| 13.44 | 13.85 | 13.90 | 3.4
Constant (1982) dollars..| 8.16 | 8.24 | 8.27 | 1.3
| | | |
Service-producing: | | | |
Current dollars..........| 12.14 | 12.69 | 12.60 | 3.8
Constant (1982) dollars..| 7.37 | 7.55 | 7.50 | 1.8
| | | |
Transportation and public | | | |
utilities: | | | |
Current dollars..........| 15.19 | 15.55 | 15.56 | 2.4
Constant (1982) dollars..| 9.22 | 9.26 | 9.26 | .4
| | | |
Wholesale trade: | | | |
Current dollars..........| 13.94 | 14.52 | 14.39 | 3.2
Constant (1982) dollars..| 8.46 | 8.64 | 8.57 | 1.3
| | | |
Retail trade: | | | |
Current dollars..........| 8.68 | 9.03 | 9.03 | 4.0
Constant (1982) dollars..| 5.27 | 5.38 | 5.38 | 2.1
| | | |
Finance, insurance, | | | |
and real estate: | | | |
Current dollars..........| 13.94 | 14.72 | 14.52 | 4.2
Constant (1982) dollars..| 8.46 | 8.76 | 8.64 | 2.1
| | | |
Services: | | | |
Current dollars..........| 12.71 | 13.33 | 13.21 | 3.9
Constant (1982) dollars..| 7.71 | 7.93 | 7.86 | 1.9
__________________________|________|________|________|______________
See footnotes at end of table.
Table 1. Earnings of production or nonsupervisory workers on private
nonfarm payrolls in current and constant dollars1/ by industry, not
seasonally adjusted - Continued
____________________________________________________________________
|
| Average weekly earnings
|_________________________________________
| | | |
Industry | | | | Percent
| June | May | June | change
| 1998 | 1999p| 1999p| June 1998 -
| | | | June 1999
__________________________|________|________|________|______________
| | | |
Total private:2/ | | | |
Current dollars..........|$440.00 |$456.37 |$454.64 | 3.3
Constant (1982) dollars..| 266.99 | 271.65 | 270.62 | 1.4
| | | |
Goods-producing: | | | |
Current dollars..........| 588.34 | 606.23 | 611.00 | 3.9
Constant (1982) dollars..| 357.00 | 360.85 | 363.69 | 1.9
| | | |
Mining: | | | |
Current dollars..........| 733.92 | 750.96 | 746.74 | 1.7
Constant (1982) dollars..| 445.34 | 447.00 | 444.49 | -.2
| | | |
Construction: | | | |
Current dollars..........| 645.62 | 668.89 | 680.98 | 5.5
Constant (1982) dollars..| 391.76 | 398.15 | 405.35 | 3.5
| | | |
Manufacturing: | | | |
Current dollars..........| 561.79 | 577.55 | 579.63 | 3.2
Constant (1982) dollars..| 340.89 | 343.78 | 345.02 | 1.2
| | | |
Service-producing: | | | |
Current dollars..........| 400.62 | 417.50 | 414.54 | 3.5
Constant (1982) dollars..| 243.09 | 248.51 | 246.75 | 1.5
| | | |
Transportation and public | | | |
utilities: | | | |
Current dollars..........| 601.52 | 603.34 | 605.28 | .6
Constant (1982) dollars..| 365.00 | 359.13 | 360.29 | -1.3
| | | |
Wholesale trade: | | | |
Current dollars..........| 535.30 | 560.47 | 554.02 | 3.5
Constant (1982) dollars..| 324.82 | 333.61 | 329.77 | 1.5
| | | |
Retail trade: | | | |
Current dollars..........| 254.32 | 262.77 | 265.48 | 4.4
Constant (1982) dollars..| 154.32 | 156.41 | 158.02 | 2.4
| | | |
Finance, insurance, | | | |
and real estate: | | | |
Current dollars..........| 501.84 | 535.81 | 519.82 | 3.6
Constant (1982) dollars..| 304.51 | 318.93 | 309.42 | 1.6
| | | |
Services: | | | |
Current dollars..........| 415.62 | 435.89 | 430.65 | 3.6
Constant (1982) dollars..| 252.20 | 259.46 | 256.34 | 1.6
__________________________|________|________|________|______________
1/ The deflator for the constant-dollar series presented in this
release is the Consumer Price Index for Urban Wage Earners and
Clerical Workers (CPI-W).
2/ Data relate to production and related workers in mining and
manufacturing; construction workers in construction; and
nonsupervisory workers in transportation and public utilities,
trade, finance, insurance, and real estate, and services. Included
in this group are approximately four-fifths of all jobs on private
industry payrolls.
p = preliminary.
Table 2. Earnings of production or nonsupervisory workers on private
nonfarm payrolls1/, seasonally adjusted
_________________________________________________________________________
| |
| |
| Average hourly | Average weekly
| earnings | earnings
| |
Year |_____________________________|_____________________________
and | | | |
month | | | |
| Current | Constant | Current | Constant
| dollars | (1982) | dollars | (1982)
| | dollars2/ | | dollars2/
| | | |
_____________|______________|______________|______________|______________
| | | |
1998: | | | |
June | $12.76 | $7.75 | $441.50 | $268.23
July | 12.80 | 7.76 | 442.88 | 268.57
Aug. | 12.85 | 7.78 | 444.61 | 269.30
Sept. | 12.88 | 7.80 | 444.36 | 268.98
Oct. | 12.91 | 7.80 | 446.69 | 269.90
Nov. | 12.94 | 7.80 | 447.72 | 270.04
Dec. | 12.98 | 7.81 | 449.11 | 270.39
1999: | | | |
Jan. | 13.04 | 7.83 | 451.18 | 270.98
Feb. | 13.06 | 7.84 | 451.88 | 271.40
Mar. | 13.11 | 7.86 | 452.30 | 271.33
Apr. | 13.14 | 7.83 | 452.02 | 269.22
May p | 13.18 | 7.85 | 453.39 | 270.04
June p | 13.23 | 7.88 | 456.44 | 271.85
_____________|______________|______________|______________|______________
1/ See footnote 2, table 1.
2/ The deflator for the constant-dollar series presented in this release
is the Consumer Price Index for Urban Wage Earners and Clerical Workers
(CPI-W).
p = preliminary.
Explanatory Note
The earnings series presented in this release are derived from the
Bureau of Labor Statistics monthly establishment survey of employment,
payroll, and hours. The deflator used for constant-dollar earnings
series presented in this release is derived from the Consumer Price
Index for Urban Wage Earners and Clerical Workers (CPI-W).
Earnings series from the monthly establishment series are estimated
arithmetic averages (means) of the hourly and weekly earnings of all
production or nonsupervisory jobs in the private nonfarm sector of the
economy. Average hourly earnings estimates are derived by dividing the
estimated industry payroll--for all production or nonsupervisory jobs--
by the corresponding paid hours. Average weekly hours estimates are
similarly derived by dividing estimated aggregate hours by the
corresponding number of production or nonsupervisory jobs. Average
weekly earnings estimates are derived by multiplying the average hourly
earnings and the average weekly hours estimates. This is equivalent to
dividing the estimated payroll by the number of production or
nonsupervisory jobs. The weekly and hourly earnings estimates for
aggregate industries, such as the major industry division and the total
private sector averages printed in this release, are derived by summing
the corresponding payroll, hours, and employment estimates of the
component industries. As a result, each industry receives a "weight" in
the published averages that corresponds to its current level of activity
(employment or total hours). This further implies that fluctuations and
varying trends in employment in high-wage versus low-wage industries as
well as wage rate changes influence the earnings averages.
There are several characteristics of the series presented in this
release that limit their suitability for some types of economic
analyses.
(1) The denominator for the weekly earnings series is the number of
private nonfarm production or nonsupervisory worker jobs. This number
includes full-time and part-time jobs as well as the jobs held by
multiple jobholders in the private nonfarm sector. These factors tend
to result in weekly earnings averages significantly lower than the
corresponding numbers for full-time jobs. (2) Annual earnings averages
can differ significantly from the result obtained by multiplying average
weekly earnings times 52 weeks. The difference may be due to factors
such as turnovers and layoffs. (3) The series are the average earnings
of all production or nonsupervisory jobs, not the earnings average of
"typical" jobs or jobs held by "typical" workers. Specifically, there
are no adjustments for occupational, age, or schooling variations or for
household type or location. Many studies have established the
significance of these factors and that their impact varies over time.
Seasonally adjusted data (table 2) are preferred by some users for
analyzing general earnings trends in the economy since they eliminate
the effect of changes that normally occur at the same time and in about
the same magnitude each year and, therefore, reveal the underlying
trends and cyclical movements. Changes in average earnings may be due
to seasonal changes in the proportion of workers in high-wage and low-
wage industries or occupations or to seasonal changes in the amount of
overtime work, and so on.
For more information, see Thomas Gavett, "Measures of Change in Real
Wages and Earnings," Monthly Labor Review, February 1972.
Information in this release will be made available to sensory impaired
individuals upon request. Voice phone: 202-606-STAT; TDD phone: 202-
606-5897; TDD Message Referral Phone Number: 1-800-326-2577.