Current labor statistics

Monthly Labor Review, Oct, 2004

Data reported for the first quarter are tabulated into size categories ranging from worksites of very small size to those with 1,000 employees or more. The size category is determined by the establishment's March employment level. It is important to note that each establishment of a multi-establishment firm is tabulated separately into the appropriate size category. The total employment level of the reporting multi-establishment firm is not used in the size tabulation.

Covered employers in most States report total wages paid during the calendar quarter, regardless of when the services were performed. A few State laws, however, specify that wages be reported for, or based on the period during which services are performed rather than the period during which compensation is paid. Under most State laws or regulations, wages include bonuses, stock options, the cash value of meals and lodging, tips and other gratuities, and, in some States, employer contributions to certain deferred compensation plans such as 401(k) plans.

Covered employer contributions for old-age, survivors, and disability insurance (OASDI), health insurance, unemployment insurance, workers' compensation, and private pension and welfare funds are not reported as wages. Employee contributions for the same purposes, however, as well as money withheld for income taxes, union dues, and so forth, are reported even though they are deducted from the worker's gross pay.

Wages of covered Federal workers represent the gross amount of all payrolls for all pay periods ending within the quarter. This includes cash allowances, the cash equivalent of any type of remuneration, severance pay, withholding taxes, and retirement deductions. Federal employee remuneration generally covers the same types of services as for workers in private industry.

Average annual wage per employee for any given industry are computed by dividing total annual wages by annual average employment. A further division by 52 yields average weekly wages per employee. Annual pay data only approximate annual earnings because an individual may not be employed by the same employer all year or may work for more than one employer at a time.

Average weekly or annual wage is affected by the ratio of full-time to part-time workers as well as the number of individuals in high-paying and low-paying occupations. When average pay levels between States and industries are compared, these factors should be taken into consideration. For example, industries characterized by high proportions of part-time workers will show average wage levels appreciably less than the weekly pay levels of regular fulltime employees in these industries. The opposite effect characterizes industries with low proportions of part-time workers, or industries that typically schedule heavy weekend and overtime work. Average wage data also may be influenced by work stoppages, labor turnover rates, retroactive payments, seasonal factors, bonus payments, and so on.

Notes on the data