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1 Technical information: Media contact: (202) 691-6378 http://www.bls.gov/cps/ 691-5902 USDL 05-1977 For release: 10:00 A.M. EDT 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.) 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 scientifically 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 selfemployment 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 nonsampling 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 bynonsampling 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. 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. This refers to persons who identified themselves 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 (in thousands) Characteristic Median weekly earnings In current dollars III 2004 III 2005 Total, 16 years and over ........................................................................... 102,325 Men, 16 years and over ......................................................................... 16 to 24 years ...................................................................................... 25 years and over ................................................................................ Women, 16 years and over ................................................................... 16 to 24 years ...................................................................................... 25 years and over ................................................................................ In constant (1982) dollars III 2004 III 2005 III 2004 III 2005 105,428 $632 $649 $322 $318 57,898 6,865 51,033 59,778 7,017 52,761 704 400 759 716 407 768 358 204 386 351 200 377 44,427 5,083 39,344 45,649 5,022 40,627 571 371 602 585 379 615 291 189 306 287 186 301 White ..................................................................................................... Men ...................................................................................................... Women ................................................................................................ 83,367 48,172 35,195 85,558 49,557 36,001 651 721 583 667 737 594 331 367 297 327 361 291 Black or African American ..................................................................... Men ...................................................................................................... Women ................................................................................................ 12,136 5,757 6,379 12,714 6,159 6,555 531 570 508 520 533 509 270 290 258 255 261 250 Asian ...................................................................................................... Men ...................................................................................................... Women ................................................................................................ 4,408 2,581 1,827 4,674 2,665 2,009 701 801 589 761 834 659 357 408 300 373 409 323 Hispanic or Latino .................................................................................. Men ...................................................................................................... Women ................................................................................................ 14,263 9,155 5,108 14,913 9,581 5,332 458 477 430 462 483 418 233 243 219 226 237 205 SEX AND AGE RACE, HISPANIC OR LATINO ETHNICITY, AND SEX 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 Age, race, and Hispanic or Latino ethnicity Number of workers (in thousands) Men Median weekly earnings Number of workers (in thousands) Women Median weekly earnings Number of workers (in thousands) Median weekly earnings TOTAL 16 years and over ..................................................................................... 16 to 24 years ......................................................................................... 16 to 19 years ....................................................................................... 20 to 24 years ....................................................................................... 25 years and over ................................................................................... 25 to 54 years ....................................................................................... 25 to 34 years ..................................................................................... 35 to 44 years ..................................................................................... 45 to 54 years ..................................................................................... 55 years and over ................................................................................. 55 to 64 years ..................................................................................... 65 years and over ............................................................................... 105,428 12,039 2,283 9,756 93,388 78,744 25,289 27,582 25,872 14,645 12,731 1,914 $649 395 310 415 697 691 615 730 745 726 741 582 59,778 7,017 1,362 5,655 52,761 44,605 14,931 15,697 13,977 8,156 6,988 1,167 $716 407 322 427 768 760 643 822 848 837 858 650 45,649 5,022 921 4,101 40,627 34,138 10,357 11,886 11,895 6,489 5,743 746 $585 379 293 401 615 613 584 622 640 621 639 500 85,558 9,920 75,638 63,356 12,282 667 398 717 712 743 49,557 5,906 43,652 36,706 6,946 737 411 792 782 871 36,001 4,015 31,986 26,650 5,336 594 379 625 623 636 12,714 1,316 11,398 9,911 1,487 520 367 551 550 555 6,159 669 5,490 4,773 717 533 366 571 567 603 6,555 647 5,908 5,138 770 509 368 531 534 509 4,674 349 4,325 3,722 603 761 408 790 795 770 2,665 194 2,471 2,125 345 834 405 872 871 877 2,009 155 1,855 1,597 257 659 412 690 692 684 14,913 2,176 12,738 11,606 1,131 462 375 484 484 488 9,581 1,455 8,126 7,447 679 483 380 502 502 499 5,332 721 4,611 4,160 452 418 355 434 433 455 White 16 years and over ..................................................................................... 16 to 24 years ......................................................................................... 25 years and over ................................................................................... 25 to 54 years ....................................................................................... 55 years and over ................................................................................. Black or African American 16 years and over ..................................................................................... 16 to 24 years ......................................................................................... 25 years and over ................................................................................... 25 to 54 years ....................................................................................... 55 years and over ................................................................................. Asian 16 years and over ..................................................................................... 16 to 24 years ......................................................................................... 25 years and over ................................................................................... 25 to 54 years ....................................................................................... 55 years and over ................................................................................. Hispanic or Latino 16 years and over ..................................................................................... 16 to 24 years ......................................................................................... 25 years and over ................................................................................... 25 to 54 years ....................................................................................... 55 years and over ................................................................................. 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 (in thousands) Median weekly earnings Occupation and sex III 2004 III 2005 III 2004 III 2005 35,684 14,421 21,263 14,188 25,399 10,056 15,343 11,680 777 6,635 4,268 15,375 8,561 6,814 37,060 14,891 22,168 14,648 25,936 10,352 15,584 12,288 903 7,031 4,354 15,496 8,453 7,043 $916 958 886 411 566 598 549 613 363 602 693 520 519 521 $935 992 897 410 570 606 550 618 352 604 705 524 516 541 17,719 7,926 9,793 7,188 9,691 5,701 3,990 11,247 655 6,523 4,068 12,054 6,058 5,995 18,305 8,186 10,120 7,262 10,153 5,792 4,361 11,734 719 6,867 4,148 12,324 6,090 6,234 1,111 1,169 1,051 470 668 733 606 618 366 603 699 575 591 548 1,103 1,147 1,057 464 682 748 616 622 361 605 704 577 594 556 17,965 6,494 11,470 7,001 15,708 4,355 11,354 433 121 112 199 3,321 2,502 819 18,754 6,706 12,049 7,385 15,783 4,559 11,223 554 184 164 207 3,173 2,363 810 776 799 767 382 516 456 533 434 357 569 506 398 394 406 812 860 785 383 514 457 530 471 324 459 720 418 416 429 TOTAL Management, professional, and related occupations .............................. Management, business, and financial operations occupations ............. Professional and related occupations .................................................... Service occupations ................................................................................ Sales and office occupations ................................................................... Sales and related occupations .............................................................. Office and administrative support occupations ...................................... Natural resources, construction, and maintenance occupations ............. Farming, fishing, and forestry occupations ............................................ Construction and extraction occupations ............................................... Installation, maintenance, and repair occupations ................................ Production, transportation, and material moving occupations ................. Production occupations ......................................................................... Transportation and material moving occupations .................................. Men Management, professional, and related occupations .............................. Management, business, and financial operations occupations ............. Professional and related occupations .................................................... Service occupations ................................................................................ Sales and office occupations ................................................................... Sales and related occupations .............................................................. Office and administrative support occupations ...................................... Natural resources, construction, and maintenance occupations ............. Farming, fishing, and forestry occupations ............................................ Construction and extraction occupations ............................................... Installation, maintenance, and repair occupations ................................ Production, transportation, and material moving occupations ................. Production occupations ......................................................................... Transportation and material moving occupations .................................. Women Management, professional, and related occupations .............................. Management, business, and financial operations occupations ............. Professional and related occupations .................................................... Service occupations ................................................................................ Sales and office occupations ................................................................... Sales and related occupations .............................................................. Office and administrative support occupations ...................................... Natural resources, construction, and maintenance occupations ............. Farming, fishing, and forestry occupations ............................................ Construction and extraction occupations ............................................... Installation, maintenance, and repair occupations ................................ Production, transportation, and material moving occupations ................. Production occupations ......................................................................... Transportation and material moving occupations .................................. 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 Characteristic Number of workers (in thousands) Upper limit of: First decile First quartile Second quartile (median) Third quartile Ninth decile SEX, RACE, AND HISPANIC OR LATINO ETHNICITY Total, 16 years and over ........................................................................... Men ......................................................................................................... Women ................................................................................................... 105,428 59,778 45,649 $306 323 289 $422 465 392 $649 716 585 $994 1,098 862 $1,484 1,667 1,246 White ...................................................................................................... Men ....................................................................................................... Women ................................................................................................. 85,558 49,557 36,001 311 331 290 435 480 398 667 737 594 1,016 1,131 873 1,524 1,732 1,264 Black or African American ...................................................................... Men ....................................................................................................... Women ................................................................................................. 12,714 6,159 6,555 281 283 279 368 379 359 520 533 509 783 815 760 1,129 1,136 1,123 Asian ....................................................................................................... Men ....................................................................................................... Women ................................................................................................. 4,674 2,665 2,009 335 373 304 488 527 433 761 834 659 1,172 1,333 993 1,762 1,917 1,440 Hispanic or Latino ................................................................................... Men ....................................................................................................... Women ................................................................................................. 14,913 9,581 5,332 269 283 244 329 347 307 462 483 418 674 700 628 1,016 1,067 919 Total, 25 years and over ......................................................................... Less than a high school diploma .......................................................... High school graduates, no college1 ...................................................... Some college or associate degree ....................................................... Bachelor’s degree and higher2 ............................................................. Bachelor’s degree only ....................................................................... Advanced degree ............................................................................... 93,388 9,302 27,640 25,655 30,791 19,875 10,916 327 257 308 345 490 457 597 464 311 408 476 705 650 809 697 413 583 678 1,014 941 1,157 1,046 565 815 950 1,504 1,384 1,694 1,547 782 1,117 1,290 2,092 1,918 2,320 Men, 25 years and over ........................................................................ Less than a high school diploma ........................................................ High school graduates, no college1 .................................................... Some college or associate degree ..................................................... Bachelor’s degree and higher2 ........................................................... Bachelor’s degree only ..................................................................... Advanced degree ............................................................................. 52,761 6,381 16,126 13,390 16,865 10,982 5,883 355 281 341 387 524 496 625 505 336 465 541 786 734 923 768 461 650 764 1,168 1,081 1,382 1,158 621 908 1,052 1,759 1,587 1,912 1,760 851 1,210 1,424 2,401 2,264 2,729 Women, 25 years and over .................................................................. Less than a high school diploma ........................................................ High school graduates, no college1 .................................................... Some college or associate degree ..................................................... Bachelor’s degree and higher2 ........................................................... Bachelor’s degree only ..................................................................... Advanced degree ............................................................................. 40,627 2,922 11,514 12,265 13,927 8,893 5,033 304 227 281 319 458 427 580 415 281 366 420 637 596 744 615 343 491 594 874 812 992 905 446 669 815 1,223 1,143 1,359 1,290 577 919 1,109 1,641 1,554 1,858 EDUCATIONAL ATTAINMENT 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 (in thousands) Median weekly earnings Characteristic III 2004 III 2005 III 2004 III 2005 Total, 16 years and over ........................................................................... 21,403 21,465 $199 $206 Men, 16 years and over ......................................................................... 16 to 24 years ...................................................................................... 25 years and over ................................................................................ 6,774 3,407 3,367 6,641 3,348 3,293 190 159 232 196 163 257 Women, 16 years and over ................................................................... 16 to 24 years ...................................................................................... 25 years and over ................................................................................ 14,629 4,423 10,206 14,824 4,800 10,024 203 152 236 210 159 246 White ..................................................................................................... Men ...................................................................................................... Women ................................................................................................ 18,038 5,629 12,408 18,076 5,546 12,530 200 186 206 207 199 212 Black or African American ..................................................................... Men ...................................................................................................... Women ................................................................................................ 2,026 702 1,324 2,001 651 1,350 189 191 188 193 185 197 Asian ...................................................................................................... Men ...................................................................................................... Women ................................................................................................ 842 275 567 845 275 571 217 231 206 209 183 223 Hispanic or Latino .................................................................................. Men ...................................................................................................... Women ................................................................................................ 2,416 808 1,607 2,497 833 1,664 189 192 187 198 211 191 SEX AND AGE RACE, HISPANIC OR LATINO ETHNICITY, AND SEX 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.