REAL EARNINGS IN AUGUST 2000
Real average weekly earnings increased by 0.1 percent between July and August 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 0.3 percent rise in average hourly earnings and a 0.1
percent decline in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
These movements were partially offset by a 0.3 percent decline in average weekly hours.
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 August 1999 to August
2000. After deflation by the CPI-W, average weekly earnings fell by 0.2 percent. Before adjustment
for seasonal change and inflation, average weekly earnings were $474.70 in August 2000, compared with
$463.32 a year earlier.
_____________________________
Real Earnings for September 2000 will be released on Wednesday, October 18, 2000.
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
____________|___________________________________________________________
| | | | |
1999: | | | | |
Aug. | 0.2 | 0.0 | 0.2 | 0.2 | (2)
Sept. | .4 | .0 | .4 | .5 | -.2
Oct. | .2 | .0 | .2 | .2 | (2)
Nov. | .2 | .0 | .2 | .2 | (2)
Dec. | .2 | .0 | .2 | .2 | (2)
2000: | | | | |
Jan. | .4 | .0 | .4 | .2 | .2
Feb. | .4 | .3 | .7 | .5 | .1
Mar. | .3 | -.3 | (2) | .7 | -.7
Apr. | .4 | .3 | .7 | .0 | .7
May | .1 | -.6 | -.4 | .1 | -.5
June | .3 | .3 | .6 | .6 | (2)
Julyp | .4 | -.3 | .1 | .2 | (2)
Aug.p | .3 | -.3 | .0 | -.1 | .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).
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/
_____________|______________|______________|______________|______________
| | | |
1999: | | | |
Aug. | 3.5 | 1.2 | 3.2 | 0.9
Sept. | 3.7 | .9 | 3.7 | .9
Oct. | 3.6 | .9 | 3.3 | .5
Nov. | 3.6 | .8 | 3.3 | .5
Dec. | 3.5 | .6 | 3.2 | .3
2000: | | | |
Jan. | 3.5 | .6 | 3.5 | .7
Feb. | 3.7 | .4 | 3.7 | .4
Mar. | 3.7 | -.3 | 3.7 | -.3
Apr. | 3.8 | .5 | 4.1 | .9
May | 3.6 | .3 | 3.3 | (2)
June | 3.6 | -.3 | 3.6 | -.3
Julyp | 3.7 | .0 | 3.4 | -.3
Aug.p | 3.8 | .5 | 3.2 | -.2
_____________|______________|______________|______________|______________
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 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
| Aug. | July | Aug. | change
| 1999 | 2000p| 2000p| Aug. 1999 -
| | | | Aug. 2000
__________________________|________|________|________|______________
| | | |
Total private:2/ | | | |
Current dollars..........| $13.20 | $13.69 | $13.68 | 3.6
Constant (1982) dollars..| 7.81 | 7.84 | 7.84 | .4
| | | |
Goods-producing: | | | |
Current dollars..........| 14.95 | 15.49 | 15.51 | 3.7
Constant (1982) dollars..| 8.85 | 8.87 | 8.88 | .3
| | | |
Mining: | | | |
Current dollars..........| 17.05 | 17.14 | 17.04 | -.1
Constant (1982) dollars..| 10.09 | 9.81 | 9.76 | -3.3
| | | |
Construction: | | | |
Current dollars..........| 17.31 | 17.96 | 18.06 | 4.3
Constant (1982) dollars..| 10.24 | 10.28 | 10.34 | 1.0
| | | |
Manufacturing: | | | |
Current dollars..........| 13.95 | 14.37 | 14.38 | 3.1
Constant (1982) dollars..| 8.25 | 8.23 | 8.24 | -.1
| | | |
Service-producing: | | | |
Current dollars..........| 12.65 | 13.13 | 13.10 | 3.6
Constant (1982) dollars..| 7.49 | 7.52 | 7.50 | .1
| | | |
Transportation and public | | | |
utilities: | | | |
Current dollars..........| 15.69 | 16.21 | 16.24 | 3.5
Constant (1982) dollars..| 9.28 | 9.28 | 9.30 | .2
| | | |
Wholesale trade: | | | |
Current dollars..........| 14.65 | 15.26 | 15.21 | 3.8
Constant (1982) dollars..| 8.67 | 8.73 | 8.71 | .5
| | | |
Retail trade: | | | |
Current dollars..........| 9.05 | 9.38 | 9.39 | 3.8
Constant (1982) dollars..| 5.36 | 5.37 | 5.38 | .4
| | | |
Finance, insurance, | | | |
and real estate: | | | |
Current dollars..........| 14.62 | 15.02 | 14.98 | 2.5
Constant (1982) dollars..| 8.65 | 8.60 | 8.58 | -.8
| | | |
Services: | | | |
Current dollars..........| 13.23 | 13.75 | 13.72 | 3.7
Constant (1982) dollars..| 7.83 | 7.87 | 7.86 | .4
__________________________|________|________|________|______________
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
| Aug. | July | Aug. | change
| 1999 | 2000p| 2000p| Aug. 1999 -
| | | | Aug. 2000
__________________________|________|________|________|______________
| | | |
Total private:2/ | | | |
Current dollars..........|$463.32 |$477.78 |$474.70 | 2.5
Constant (1982) dollars..| 274.15 | 273.49 | 271.88 | -.8
| | | |
Goods-producing: | | | |
Current dollars..........| 618.93 | 633.54 | 637.46 | 3.0
Constant (1982) dollars..| 366.23 | 362.64 | 365.10 | -.3
| | | |
Mining: | | | |
Current dollars..........| 758.73 | 774.73 | 766.80 | 1.1
Constant (1982) dollars..| 448.95 | 443.46 | 439.18 | -2.2
| | | |
Construction: | | | |
Current dollars..........| 692.40 | 723.79 | 726.01 | 4.9
Constant (1982) dollars..| 409.70 | 414.30 | 415.81 | 1.5
| | | |
Manufacturing: | | | |
Current dollars..........| 583.11 | 590.61 | 595.33 | 2.1
Constant (1982) dollars..| 345.04 | 338.07 | 340.97 | -1.2
| | | |
Service-producing: | | | |
Current dollars..........| 423.78 | 437.23 | 433.61 | 2.3
Constant (1982) dollars..| 250.76 | 250.27 | 248.34 | -1.0
| | | |
Transportation and public | | | |
utilities: | | | |
Current dollars..........| 618.19 | 635.43 | 628.49 | 1.7
Constant (1982) dollars..| 365.79 | 363.73 | 359.96 | -1.6
| | | |
Wholesale trade: | | | |
Current dollars..........| 565.49 | 592.09 | 581.02 | 2.7
Constant (1982) dollars..| 334.61 | 338.92 | 332.77 | -.5
| | | |
Retail trade: | | | |
Current dollars..........| 270.60 | 279.52 | 277.94 | 2.7
Constant (1982) dollars..| 160.12 | 160.00 | 159.19 | -.6
| | | |
Finance, insurance, | | | |
and real estate: | | | |
Current dollars..........| 540.94 | 551.23 | 539.28 | -.3
Constant (1982) dollars..| 320.08 | 315.53 | 308.87 | -3.5
| | | |
Services: | | | |
Current dollars..........| 439.24 | 453.75 | 451.39 | 2.8
Constant (1982) dollars..| 259.91 | 259.73 | 258.53 | -.5
__________________________|________|________|________|______________
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/
| | | |
_____________|______________|______________|______________|______________
| | | |
1999: | | | |
Aug. | $13.30 | $7.87 | $458.85 | $271.67
Sept. | 13.35 | 7.86 | 460.58 | 271.25
Oct. | 13.38 | 7.87 | 461.61 | 271.38
Nov. | 13.41 | 7.87 | 462.65 | 271.51
Dec. | 13.44 | 7.87 | 463.68 | 271.48
2000: | | | |
Jan. | 13.49 | 7.88 | 465.41 | 272.01
Feb. | 13.54 | 7.87 | 468.48 | 272.37
Mar. | 13.58 | 7.84 | 468.51 | 270.35
Apr. | 13.64 | 7.87 | 471.94 | 272.33
May | 13.66 | 7.88 | 469.90 | 270.99
June | 13.70 | 7.86 | 472.65 | 271.01
July p | 13.76 | 7.88 | 473.34 | 270.94
Aug. p | 13.80 | 7.91 | 473.34 | 271.26
_____________|______________|______________|______________|______________
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’
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://stats.bls.gov/ceshome.htm).
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.
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