Real Earnings News Release

Transmission of material in this release is embargoed until	                      USDL-12-1835
8:30 a.m. (EDT), Friday, September 14, 2012

Technical Information:	(202) 691-6555  *  cesinfo@bls.gov  *  www.bls.gov/ces
Media Contact:	        (202) 691-5902  *  PressOffice@bls.gov

REAL EARNINGS * AUGUST 2012


All employees 

Real average hourly earnings for all employees fell 0.7 percent from July to August, seasonally adjusted, 
the U.S. Bureau of Labor Statistics reported today. This decline resulted from unchanged average 
hourly earnings combined with a 0.6 percent increase in the Consumer Price Index for All Urban Consumers. 
//REALER JTS Test 06112020//

Real average weekly earnings fell 0.6 percent over the month due to the decline in real average hourly 
earnings combined with an unchanged average workweek. Since reaching a peak in October 2010, real 
average weekly earnings have fallen 1.3 percent.

Real average hourly earnings were unchanged, seasonally adjusted, from August 2011 to August 2012. 
The unchanged real average hourly earnings, combined with a 0.3 percent increase in the average 
workweek, resulted in a 0.3 percent increase in real average weekly earnings over this period. 


Production and nonsupervisory employees

Real average hourly earnings for production and nonsupervisory employees fell 0.8 percent from July to 
August, seasonally adjusted. This decline resulted from a 0.1 percent decrease in average hourly earnings 
combined with a 0.7 percent increase in the Consumer Price Index for Urban Wage Earners and Clerical 
Workers (CPI-W).

Real average weekly earnings fell 0.8 percent over the month. Since reaching a peak in October 2010, 
real average weekly earnings for production and nonsupervisory employees have fallen 2.1 percent.

Real average hourly earnings fell 0.3 percent, seasonally adjusted, from August 2011 to August 2012. 
The decline in real average hourly earnings, combined with a 0.3 percent increase in the average 
workweek, resulted in a 0.1 percent decrease in real average weekly earnings over this period.
	
Real Earnings for September 2012 is scheduled to be released on Tuesday, October 16, 2012 at 8:30 
a.m. (EDT).  

 







 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 
 ____________|___________________________________________________________
             |           |           |           |           |           
 1997:       |           |           |           |           |           
     Dec.    |     0.2   |     0.0   |     0.2   |     0.1   |     0.2   
 1998:       |           |           |           |           |           
     Jan.    |      .3   |      .3   |      .6   |      .0   |      .6   
     Feb.    |      .4   |     -.3   |      .1   |      .0   |      .1   
     Mar.    |      .3   |     -.3   |    (2)    |     -.1   |      .1   
     Apr.    |      .6   |     -.3   |      .3   |      .3   |    (2)    
     May     |      .2   |      .6   |      .8   |      .3   |      .5   
     June    |      .2   |     -.3   |     -.1   |      .1   |     -.1   
     July    |      .2   |      .0   |      .2   |      .2   |      .1   
     Aug.    |      .5   |      .0   |      .5   |      .1   |      .4   
     Sept.   |      .2   |     -.6   |     -.4   |      .1   |     -.5   
     Oct.    |      .2   |      .6   |      .8   |      .3   |      .5   
     Nov.p   |      .2   |     -.3   |     -.1   |      .1   |     -.2   
     Dec.p   |      .4   |      .3   |      .7   |      .2   |      .5   
             |___________________________________________________________
             |                                                           
             | Percent change from same month a year ago, not seasonally 
             |                          adjusted                         
             |___________________________________________________________
             |           |           |           |           |           
 1997:       |           |           |           |           |           
     Dec.    |     3.8   |    -0.3   |     3.5   |     1.5   |     2.0   
 1998:       |           |           |           |           |           
     Jan.    |     4.0   |      .9   |     4.9   |     1.3   |     3.5   
     Feb.    |     4.1   |      .3   |     4.4   |     1.1   |     3.3   
     Mar.    |     4.1   |     -.3   |     3.8   |     1.1   |     2.7   
     Apr.    |     4.2   |     -.6   |     3.6   |     1.2   |     2.3   
     May     |     4.3   |      .3   |     4.6   |     1.5   |     3.0   
     June    |     3.9   |     -.6   |     3.3   |     1.5   |     1.8   
     July    |     4.0   |      .0   |     4.0   |     1.5   |     2.5   
     Aug.    |     4.3   |      .3   |     4.6   |     1.4   |     3.1   
     Sept.   |     4.0   |    -1.4   |     2.5   |     1.2   |     1.3   
     Oct.    |     3.8   |     -.3   |     3.5   |     1.3   |     2.2   
     Nov.p   |     3.7   |     -.3   |     3.4   |     1.4   |     2.0   
     Dec.p   |     3.7   |     -.3   |     3.4   |     1.6   |     1.8   
 ____________|___________|___________|___________|___________|___________

  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   
                             |   Dec. |   Nov. |   Dec. |    change    
                             |   1997 |   1998p|   1998p|  Dec. 1997 - 
                             |        |        |        |  Dec. 1998   
   __________________________|________|________|________|______________
                             |        |        |        |              
   Total private:2/          |        |        |        |              
    Current dollars..........| $12.53 | $12.99 | $12.99 |      3.7     
    Constant (1982) dollars..|   7.67 |   7.83 |   7.83 |      2.1     
                             |        |        |        |              
   Goods-producing:          |        |        |        |              
    Current dollars..........|  14.21 |  14.49 |  14.55 |      2.4     
    Constant (1982) dollars..|   8.70 |   8.74 |   8.78 |       .9     
                             |        |        |        |              
   Mining:                   |        |        |        |              
    Current dollars..........|  16.52 |  17.32 |  17.41 |      5.4     
    Constant (1982) dollars..|  10.12 |  10.45 |  10.50 |      3.8     
                             |        |        |        |              
   Construction:             |        |        |        |              
    Current dollars..........|  16.37 |  16.80 |  16.83 |      2.8     
    Constant (1982) dollars..|  10.02 |  10.13 |  10.15 |      1.3     
                             |        |        |        |              
   Manufacturing:            |        |        |        |              
    Current dollars..........|  13.47 |  13.60 |  13.69 |      1.6     
    Constant (1982) dollars..|   8.25 |   8.20 |   8.26 |       .1     
                             |        |        |        |              
   Service-producing:        |        |        |        |              
    Current dollars..........|  11.96 |  12.50 |  12.49 |      4.4     
    Constant (1982) dollars..|   7.32 |   7.54 |   7.53 |      2.9     
                             |        |        |        |              
   Transportation and public |        |        |        |              
        utilities:           |        |        |        |              
    Current dollars..........|  15.17 |  15.53 |  15.57 |      2.6     
    Constant (1982) dollars..|   9.29 |   9.37 |   9.39 |      1.1     
                             |        |        |        |              
   Wholesale trade:          |        |        |        |              
    Current dollars..........|  13.72 |  14.29 |  14.27 |      4.0     
    Constant (1982) dollars..|   8.40 |   8.62 |   8.61 |      2.5     
                             |        |        |        |              
   Retail trade:             |        |        |        |              
    Current dollars..........|   8.51 |   8.87 |   8.89 |      4.5     
    Constant (1982) dollars..|   5.21 |   5.35 |   5.36 |      2.9     
                             |        |        |        |              
   Finance, insurance,       |        |        |        |              
        and real estate:     |        |        |        |              
    Current dollars..........|  13.64 |  14.41 |  14.33 |      5.1     
    Constant (1982) dollars..|   8.35 |   8.69 |   8.64 |      3.5     
                             |        |        |        |              
   Services:                 |        |        |        |              
    Current dollars..........|  12.61 |  13.14 |  13.18 |      4.5     
    Constant (1982) dollars..|   7.72 |   7.93 |   7.95 |      3.0     
   __________________________|________|________|________|______________

   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   
                             |   Dec. |   Nov. |   Dec. |    change    
                             |   1997 |   1998p|   1998p|  Dec. 1997 - 
                             |        |        |        |  Dec. 1998   
   __________________________|________|________|________|______________
                             |        |        |        |              
   Total private:2/          |        |        |        |              
    Current dollars..........|$436.04 |$450.75 |$450.75 |      3.4     
    Constant (1982) dollars..| 267.02 | 271.86 | 271.86 |      1.8     
                             |        |        |        |              
   Goods-producing:          |        |        |        |              
    Current dollars..........| 596.82 | 596.99 | 608.19 |      1.9     
    Constant (1982) dollars..| 365.47 | 360.07 | 366.82 |       .4     
                             |        |        |        |              
   Mining:                   |        |        |        |              
    Current dollars..........| 746.70 | 760.35 | 757.34 |      1.4     
    Constant (1982) dollars..| 457.26 | 458.59 | 456.78 |      -.1     
                             |        |        |        |              
   Construction:             |        |        |        |              
    Current dollars..........| 630.25 | 646.80 | 659.74 |      4.7     
    Constant (1982) dollars..| 385.95 | 390.11 | 397.91 |      3.1     
                             |        |        |        |              
   Manufacturing:            |        |        |        |              
    Current dollars..........| 579.21 | 572.56 | 583.19 |       .7     
    Constant (1982) dollars..| 354.69 | 345.33 | 351.74 |      -.8     
                             |        |        |        |              
   Service-producing:        |        |        |        |              
    Current dollars..........| 393.48 | 412.50 | 410.92 |      4.4     
    Constant (1982) dollars..| 240.96 | 248.79 | 247.84 |      2.9     
                             |        |        |        |              
   Transportation and public |        |        |        |              
        utilities:           |        |        |        |              
    Current dollars..........| 603.77 | 616.54 | 607.23 |       .6     
    Constant (1982) dollars..| 369.73 | 371.86 | 366.24 |      -.9     
                             |        |        |        |              
   Wholesale trade:          |        |        |        |              
    Current dollars..........| 526.85 | 553.02 | 549.40 |      4.3     
    Constant (1982) dollars..| 322.63 | 333.55 | 331.36 |      2.7     
                             |        |        |        |              
   Retail trade:             |        |        |        |              
    Current dollars..........| 248.49 | 256.34 | 259.59 |      4.5     
    Constant (1982) dollars..| 152.17 | 154.61 | 156.57 |      2.9     
                             |        |        |        |              
   Finance, insurance,       |        |        |        |              
        and real estate:     |        |        |        |              
    Current dollars..........| 489.68 | 533.17 | 517.31 |      5.6     
    Constant (1982) dollars..| 299.87 | 321.57 | 312.01 |      4.0     
                             |        |        |        |              
   Services:                 |        |        |        |              
    Current dollars..........| 411.09 | 430.99 | 430.99 |      4.8     
    Constant (1982) dollars..| 251.74 | 259.95 | 259.95 |      3.3     
   __________________________|________|________|________|______________

    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/ 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/  
              |              |              |              |              
 _____________|______________|______________|______________|______________
              |              |              |              |              
 1997:        |              |              |              |              
     Dec.     |    $12.50    |     $7.63    |   $433.75    |   $264.80    
 1998:        |              |              |              |              
     Jan.     |     12.54    |      7.66    |    436.39    |    266.42    
     Feb.     |     12.59    |      7.69    |    436.87    |    266.71    
     Mar.     |     12.63    |      7.72    |    437.00    |    266.95    
     Apr.     |     12.70    |      7.74    |    438.15    |    267.00    
     May      |     12.73    |      7.73    |    441.73    |    268.37    
     June     |     12.76    |      7.75    |    441.50    |    268.06    
     July     |     12.79    |      7.75    |    442.53    |    268.20    
     Aug.     |     12.85    |      7.78    |    444.61    |    269.30    
     Sept.    |     12.87    |      7.79    |    442.73    |    268.00    
     Oct.     |     12.90    |      7.79    |    446.34    |    269.37    
     Nov. p   |     12.93    |      7.79    |    446.09    |    268.89    
     Dec. p   |     12.98    |      7.81    |    449.11    |    270.22    
 _____________|______________|______________|______________|______________

  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 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).
	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:  202-606-STAT;  TDD phone:  202-
606-5897;  TDD Message Referral Phone Number: 1-800-326-2577.

Last Modified Date: June 11, 2020