Bureau of Labor Statistics Washington, D.C TRANSMISSION OF MATERIAL IN THIS RELEASE IS EMBARGOED UNTIL 8:30 AM EDT, TUESDAY, APRIL 17, 2007
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1 News Bureau of Labor Statistics Washington, D.C United States Department of Labor Internet Address: Technical information: (202) USDL Media contact: REAL EARNINGS IN MARCH 2007 TRANSMISSION OF MATERIAL IN THIS RELEASE IS EMBARGOED UNTIL 8:30 AM EDT, TUESDAY, APRIL 17, 2007 Real average fell by 0.1 percent from February to March after seasonal adjustment, according to preliminary data released today by the Bureau of Labor Statistics of the U.S. Department of Labor. A 0.3 percent rise in both average hours average hourly was more than offset by a 0.8 percent increase in the Consumer Price Index for Urban Wage Earners Clerical Workers (CPI-W). Data on average are collected from the payroll reports of private nonfarm establishments. Earnings of both full-time part-time workers holding production or nonsupervisory jobs are included. Real average are calculated by adjusting in current for changes in the CPI-W. rose by 4.4 percent, seasonally adjusted, from March 2006 to March After deflation by the CPI-W, average increased by 1.6 percent. Before adjustment for seasonal change inflation, average were $ in March 2007, compared with $ a year earlier. Real Earnings for April 2007 will be released on Tuesday, May 15, 2007.
2 Table A. Composition of change in real of production or nonsupervisory workers 1 on private nonfarm payrolls hourly hours The Consumer Price Index 2 Real average Percent change from preceding, seasonally adjusted Mar Apr May June July Aug ( 3 ) Sept Oct Nov ( 3 ).1 ( 3 ) Dec Jan Feb. p ( 3 ) Mar. p See footnote 2, table 1. Earners Clerical Workers (CPI-W). 2 The deflator for the constant-dollar 3 Less than 0.05 percent. series presented in this release is the Consumer Price Index for Urban Wage Table B. Percent change in from the same a year ago for production or nonsupervisory workers 1 on private nonfarm payrolls, seasonally adjusted hourly Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb. p Mar. p See footnote 2, table 1. Earners Clerical Workers (CPI-W). 2 The deflator for the constant-dollar 3 Less than 0.05 percent. series presented in this release is the Consumer Price Index for Urban Wage
3 Table 1. Earnings of production or nonsupervisory workers on private nonfarm payrolls in current constant 1 by industry selected industry detail, not seasonally adjusted hourly Industry Mar Feb p Mar p Percent change: Mar Mar Mar Feb p Mar p Percent change: Mar Mar Total private: 2... $16.56 $17.21 $ $ $ $ (1982) Goods-producing: (1982) Natural resources mining: (1982) Construction: (1982) Manufacturing: (1982) Private service-providing: (1982) Trade, transportation, utilities: (1982) Wholesale trade: (1982) Retail trade: (1982) Transportation warehousing: (1982) Utilities: , , , (1982) Information: (1982) Financial activities: (1982) Professional business services: (1982) Education health services: (1982) Leisure hospitality: (1982) Other services: (1982) The deflator for the constant-dollar series presented in this release manufacturing, construction workers in construction, nonsupervisory is the Consumer Price Index for Urban Wage Earners Clerical workers in the service-providing industries. These groups account for Workers (CPI-W). approximately four-fifths of the total employment on private nonfarm payrolls. 2 Data relate to production workers in natural resources mining
4 Table 2. Earnings of production or nonsupervisory workers 1 on private nonfarm payrolls, seasonally adjusted hourly Mar. $16.55 $8.21 $ $ Apr May June July Aug Sept Oct Nov Dec Jan Feb. p Mar. p See footnote 2, table 1. Price Index for Urban Wage Earners 2 The deflator for the constant-dollar series Clerical Workers (CPI-W). presented in this release is the Consumer
5 Explanatory Note The series presented in this release are derived from the Bureau of Labor Statistics Employment Statistics (CES) survey, a ly establishment survey of employment, payroll, hours. The deflator used for constant-dollar series presented in this release is derived from the Consumer Price Index for Urban Wage Earners Clerical Workers (CPI-W). For the purpose of the Real Earnings series, the CPI-W is converted from the base of that is used in the official, published series to a base of Thus, the constant dollar average hourly series are in 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 calculations. Seasonally adjusted data are used for estimates of percent change from the same a year ago for current constant average hourly that are presented in Table B of this release. Special techniques are applied to the CES hours data in the seasonal adjustment process to mitigate the effect of certain calendarrelated fluctuations. Thus, over-the-year changes of these hours are bes t measured using seasonally adjusted series. A discussion of the calendar-related fluctuations in the hours data the special techniques to remove them is available in the February 2004 issue of Employment Earnings or on the Internet under Technical Notes ( Earnings series from the ly establishment series are estimated arithmetic averages (means) of the hourly of all production or nonsupervisory jobs in the private nonfarm sector of the economy. hourly estimates are derived by dividing the estimated industry payroll--for all production or nonsupervisory jobs--by the corresponding paid hours. hours estimates are similarly derived by dividing estimated aggregate hours by the corresponding number of production or nonsupervisory jobs. estimates are derived by multiplying the average hourly the average hours estimates. This is equivalent to dividing the estimated payroll by the number of production or nonsupervisory jobs. The hourly estimates for aggregate industries, such as the major industry division the total private sector averages printed in this release, are derived by summing the corresponding payroll, hours, 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 varying trends in employment in high-wage versus low-wage industries as well as wage rate changes influence the 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 series is the number of private nonfarm production or nonsupervisory worker jobs. This number includes full-time part-time jobs as well as the jobs held by multiple jobholders in the private nonfarm sector. These factors tend to result in averages significantly lower than the corresponding numbers for full-time jobs. (2) Annual averages can differ significantly from the result obtained by multiplying average times 52 weeks. The difference may be due to factors such as turnovers layoffs. (3) The series are the average of all production or nonsupervisory jobs, not the 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 that their impact varies over time. Seasonally adjusted data (table 2) are preferred by some users for analyzing general trends in the economy since they eliminate the effect of changes that normally occur at the same time in about the same magnitude each year, therefore, reveal the underlying trends cyclical movements. Changes in average may be due to seasonal changes in the proportion of workers in high-wage low-wage industries or occupations or to seasonal changes in the amount of overtime work, so on. For more information, see Thomas Gavett, "Measures of Change in Real Wages Earnings," Monthly Labor Review, February Information in this release will be made available to sensory impaired individuals upon request. Voice phone: ; TDD Message Referral Phone Number:
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