Full text of May 2002 : Text File, USDL 02-345
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TRANSMISSION OF MATERIAL
IN THIS RELEASE IS EMBARGOED
UNTIL 8:30 AM EDT, TUESDAY,
JUNE 18, 2002
REAL EARNINGS IN MAY 2002
Real average weekly earnings increased by 0.3 percent from April to May
after seasonal adjustment, according to preliminary data released today by the
Bureau of Labor Statistics of the U.S. Department of Labor. This was due to a
0.2 percent increase in average hourly earnings and a 0.1 percent decrease in
the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Average weekly hours were unchanged.
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 3.2 percent, seasonally adjusted, from May
2001 to May 2002. After deflation by the CPI-W, average weekly earnings rose
by 2.4 percent. Before adjustment for seasonal change and inflation, average
weekly earnings were $500.25 in May 2002, compared with $484.56 a year earlier.
_____________________________
Real Earnings for June 2002 will be released on Friday, July 19, 2002.
******************************************************************************
* The estimates of average weekly hours and average hourly and weekly *
* earnings have been revised with the release of May data to reflect new *
* employment benchmarks; the introduction of probability-based sample *
* estimates for transportation and public utilities, retail trade, and *
* finance, insurance, and real estate; and the updating of seasonal *
* adjustment factors. Unadjusted data have been revised from April 2000 *
* forward. In addition, seasonally adjusted hours and earnings series have *
* been revised from January 1997 forward in accordance with the usual *
* practice of revising 5 years of data. *
******************************************************************************
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
____________|___________________________________________________________
| | | | |
2001: | | | | |
May | 0.2 | 0.0 | 0.2 | 0.4 | -0.2
June | .4 | .0 | .4 | .2 | .2
July | .3 | .0 | .3 | -.3 | .6
Aug. | .3 | -.3 | .1 | .0 | .1
Sept. | .3 | .0 | .3 | .5 | -.2
Oct. | .2 | -.3 | -.1 | -.4 | .3
Nov. | .4 | .3 | .7 | -.1 | .8
Dec. | .3 | .0 | .3 | -.2 | .6
2002: | | | | |
Jan. | .2 | .0 | .2 | .2 | (2)
Feb. | .2 | .3 | .5 | .2 | .3
Mar. | .2 | .0 | .2 | .3 | -.1
Apr.p | .1 | .0 | .1 | .6 | -.4
Mayp | .2 | .0 | .2 | -.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).
2/ Less than 0.05 percent.
p = preliminary.
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/
_____________|______________|______________|______________|______________
| | | |
2001: | | | |
May | 4.2 | 0.5 | 3.6 | -0.1
June | 4.1 | .9 | 3.5 | .3
July | 4.1 | 1.4 | 3.5 | .9
Aug. | 4.1 | 1.4 | 3.2 | .5
Sept. | 4.1 | 1.6 | 3.2 | .7
Oct. | 3.8 | 1.9 | 2.6 | .6
Nov. | 3.9 | 2.3 | 3.0 | 1.4
Dec. | 3.8 | 2.5 | 3.5 | 2.3
2002: | | | |
Jan. | 3.8 | 2.9 | 2.9 | 2.1
Feb. | 3.5 | 2.6 | 3.5 | 2.7
Mar. | 3.4 | 2.1 | 3.4 | 2.2
Apr.p | 3.2 | 2.0 | 3.2 | 1.9
Mayp | 3.2 | 2.4 | 3.2 | 2.4
_____________|______________|______________|______________|______________
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/ Less than 0.05 percent.
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
| May | Apr. | May | change
| 2001 | 2002p| 2002p| May 2001 -
| | | | May 2002
__________________________|________|________|________|______________
| | | |
Total private:2/ | | | |
Current dollars..........| $14.21 | $14.69 | $14.67 | 3.2
Constant (1982) dollars..| 7.89 | 8.10 | 8.09 | 2.5
| | | |
Goods-producing: | | | |
Current dollars..........| 15.83 | 16.26 | 16.30 | 3.0
Constant (1982) dollars..| 8.79 | 8.96 | 8.99 | 2.3
| | | |
Mining: | | | |
Current dollars..........| 17.42 | 17.68 | 17.68 | 1.5
Constant (1982) dollars..| 9.68 | 9.75 | 9.75 | .7
| | | |
Construction: | | | |
Current dollars..........| 18.18 | 18.68 | 18.65 | 2.6
Constant (1982) dollars..| 10.10 | 10.30 | 10.28 | 1.8
| | | |
Manufacturing: | | | |
Current dollars..........| 14.75 | 15.20 | 15.23 | 3.3
Constant (1982) dollars..| 8.19 | 8.38 | 8.40 | 2.6
| | | |
Service-producing: | | | |
Current dollars..........| 13.72 | 14.25 | 14.21 | 3.6
Constant (1982) dollars..| 7.62 | 7.86 | 7.83 | 2.8
| | | |
Transportation and public | | | |
utilities: | | | |
Current dollars..........| 16.65 | 17.31 | 17.24 | 3.5
Constant (1982) dollars..| 9.25 | 9.54 | 9.50 | 2.7
| | | |
Wholesale trade: | | | |
Current dollars..........| 15.71 | 16.09 | 16.09 | 2.4
Constant (1982) dollars..| 8.73 | 8.87 | 8.87 | 1.6
| | | |
Retail trade: | | | |
Current dollars..........| 9.67 | 10.01 | 9.97 | 3.1
Constant (1982) dollars..| 5.37 | 5.52 | 5.50 | 2.4
| | | |
Finance, insurance, | | | |
and real estate: | | | |
Current dollars..........| 15.72 | 16.23 | 16.20 | 3.1
Constant (1982) dollars..| 8.73 | 8.95 | 8.93 | 2.3
| | | |
Services: | | | |
Current dollars..........| 14.52 | 15.15 | 15.13 | 4.2
Constant (1982) dollars..| 8.07 | 8.35 | 8.34 | 3.3
__________________________|________|________|________|______________
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
| May | Apr. | May | change
| 2001 | 2002p| 2002p| May 2001 -
| | | | May 2002
__________________________|________|________|________|______________
| | | |
Total private:2/ | | | |
Current dollars..........|$484.56 |$499.46 |$500.25 | 3.2
Constant (1982) dollars..| 269.20 | 275.34 | 275.77 | 2.4
| | | |
Goods-producing: | | | |
Current dollars..........| 642.70 | 653.65 | 658.52 | 2.5
Constant (1982) dollars..| 357.06 | 360.34 | 363.02 | 1.7
| | | |
Mining: | | | |
Current dollars..........| 768.22 | 747.86 | 758.47 | -1.3
Constant (1982) dollars..| 426.79 | 412.27 | 418.12 | -2.0
| | | |
Construction: | | | |
Current dollars..........| 730.84 | 724.78 | 727.35 | -.5
Constant (1982) dollars..| 406.02 | 399.55 | 400.96 | -1.2
| | | |
Manufacturing: | | | |
Current dollars..........| 600.33 | 620.16 | 622.91 | 3.8
Constant (1982) dollars..| 333.52 | 341.87 | 343.39 | 3.0
| | | |
Service-producing: | | | |
Current dollars..........| 447.27 | 463.13 | 463.25 | 3.6
Constant (1982) dollars..| 248.48 | 255.31 | 255.37 | 2.8
| | | |
Transportation and public | | | |
utilities: | | | |
Current dollars..........| 634.37 | 657.78 | 660.29 | 4.1
Constant (1982) dollars..| 352.43 | 362.61 | 364.00 | 3.3
| | | |
Wholesale trade: | | | |
Current dollars..........| 600.12 | 614.64 | 616.25 | 2.7
Constant (1982) dollars..| 333.40 | 338.83 | 339.72 | 1.9
| | | |
Retail trade: | | | |
Current dollars..........| 277.53 | 288.29 | 290.13 | 4.5
Constant (1982) dollars..| 154.18 | 158.93 | 159.94 | 3.7
| | | |
Finance, insurance, | | | |
and real estate: | | | |
Current dollars..........| 559.63 | 581.03 | 579.96 | 3.6
Constant (1982) dollars..| 310.91 | 320.30 | 319.71 | 2.8
| | | |
Services: | | | |
Current dollars..........| 471.90 | 490.86 | 490.21 | 3.9
Constant (1982) dollars..| 262.17 | 270.60 | 270.24 | 3.1
__________________________|________|________|________|______________
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/
| | | |
_____________|______________|______________|______________|______________
| | | |
2001: | | | |
May | $14.24 | $7.93 | $487.01 | $271.16
June | 14.29 | 7.94 | 488.72 | 271.66
July | 14.33 | 7.99 | 490.09 | 273.34
Aug. | 14.38 | 8.02 | 490.36 | 273.49
Sept. | 14.43 | 8.01 | 492.06 | 273.06
Oct. | 14.46 | 8.06 | 491.64 | 273.89
Nov. | 14.52 | 8.10 | 495.13 | 276.15
Dec. | 14.56 | 8.14 | 496.50 | 277.68
2002: | | | |
Jan. | 14.59 | 8.14 | 497.52 | 277.63
Feb. | 14.62 | 8.14 | 500.00 | 278.40
Mar. | 14.65 | 8.13 | 501.03 | 278.04
Apr. p | 14.67 | 8.10 | 501.71 | 276.88
May p | 14.70 | 8.12 | 502.74 | 277.60
_____________|______________|______________|______________|______________
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.
Table 3. Revised seasonally adjusted average hourly and weekly earnings of
production or nonsupervisory workers on private nonfarm payrolls1/ in
constant (1982) dollars
___________________________________________________________________________
|
| Average hourly earnings
|___________________________________________________________
Year | | | | | |
| | | | | |
| Jan. | Feb. | Mar. | Apr. | May | June
_______________|_________|_________|_________|_________|_________|_________
| | | | | |
1997...........| $7.46 | $7.47 | $7.50 | $7.51 | $7.53 | $7.54
1998...........| 7.65 | 7.69 | 7.72 | 7.74 | 7.74 | 7.76
1999...........| 7.83 | 7.84 | 7.86 | 7.84 | 7.87 | 7.89
2000...........| 7.89 | 7.87 | 7.85 | 7.88 | 7.89 | 7.87
2001...........| 7.91 | 7.93 | 7.96 | 7.94 | 7.93 | 7.94
|___________________________________________________________
| | | | | |
| | | | | |
| July | Aug. | Sept. | Oct. | Nov. | Dec.
|_________|_________|_________|_________|_________|_________
| | | | | |
1997...........| 7.55 | 7.57 | 7.58 | 7.60 | 7.62 | 7.64
1998...........| 7.76 | 7.78 | 7.80 | 7.80 | 7.81 | 7.82
1999...........| 7.89 | 7.87 | 7.86 | 7.86 | 7.86 | 7.86
2000...........| 7.88 | 7.91 | 7.88 | 7.91 | 7.92 | 7.94
2001...........| 7.99 | 8.02 | 8.01 | 8.06 | 8.10 | 8.14
_______________|_________|_________|_________|_________|_________|_________
See footnotes at end of table.
Table 3. Revised seasonally adjusted average hourly and weekly earnings of
production or nonsupervisory workers on private nonfarm payrolls1/ in
constant (1982) dollars--Continued
___________________________________________________________________________
|
| Average weekly earnings
|___________________________________________________________
| | | | | |
| | | | | |
| Jan. | Feb. | Mar. | Apr. | May | June
_______________|_________|_________|_________|_________|_________|_________
| | | | | |
1997...........| $256.72 | $258.38 | $259.44 | $259.72 | $260.57 | $260.18
1998...........| 266.25 | 266.92 | 267.00 | 267.73 | 268.69 | 267.66
1999...........| 270.82 | 270.61 | 270.49 | 270.53 | 271.35 | 272.22
2000...........| 272.10 | 271.63 | 270.70 | 271.70 | 271.35 | 270.82
2001...........| 271.99 | 271.14 | 272.10 | 271.65 | 271.16 | 271.66
|___________________________________________________________
| | | | | |
| | | | | |
| July | Aug. | Sept. | Oct. | Nov. | Dec.
|_________|_________|_________|_________|_________|_________
| | | | | |
1997...........| 261.21 | 262.81 | 262.09 | 263.80 | 263.78 | 265.18
1998...........| 268.53 | 269.30 | 268.98 | 269.95 | 270.25 | 270.43
1999...........| 272.07 | 271.67 | 270.46 | 271.22 | 271.30 | 271.32
2000...........| 270.94 | 272.08 | 271.21 | 272.27 | 272.43 | 271.55
2001...........| 273.34 | 273.49 | 273.06 | 273.89 | 276.15 | 277.68
_______________|_________|_________|_________|_________|_________|_________
1/ Data relate to production and related workers in mining and
manufacturing; construction workers in construction; and nonsupervisory
workers in transportation and public utilities; wholesale and retail trade;
finance, insurance, and real estate; and services.
NOTE: These data have been revised to reflect the March 2001 benchmark
and updated seasonal adjustment factors.
p = preliminary.
Explanatory Note
The earnings series presented in this release
are derived from the Bureau of Labor Statistics�
Current Employment Statistics (CES) survey, a
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).
For the purpose of the Real Earnings series,
the CPI-W is converted from the base of 1982-84 that
is used in the official, published series to a base of
1982. Thus, the constant dollar average hourly and
weekly earnings series are in 1982 dollars. To avoid
confusion for users, the CPI data presented in Table A
are the official, published CPI-W series. These data
may differ slightly from those used in the real earnings
calculations.
Seasonally adjusted data are used for
estimates of percent change from the same month a
year ago for current and constant average hourly and
weekly earnings that are presented in Table B of this
release. Special techniques are applied to the CES
hours and earnings data in the seasonal adjustment
process to mitigate the effect of certain calendar-
related fluctuations. Thus, over-the-year changes of
these hours and earnings are best measured using
seasonally adjusted series. A discussion of the
calendar-related fluctuations in the hours and earnings
data and the special techniques to remove them is
available in the June 1998 issue of Employment and
Earnings or on the Internet
(http://www.bls.gov/ces/).
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: 202-691-5200; TDD Message Referral
Phone Number: 1-800-877-8339.