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32. 1997 Economic Census
NA Not available.
1 Average hours and earnings. Private production and related workers in mining, manufacturing, and construction; nonsupervisory employees in other industries.
Source: U.S. Bureau of Labor Statistics, Employment and Earnings, monthly, June issues and Internet site
Employment, Hours, and Earnings from the Establishment Survey
An establishment is an economic unit, such as a factory, mine, or store, which produces goods or services. It is generally at a single location and engaged predominantly in one type of economic activity. Where a single location encompasses two or more distinct activities, these are treated as separate establishments, provided that separate payroll records are available and certain other criteria are met.
Employment is the total number of persons employed full or part time in nonfarm establishments during a specified payroll period. Temporary employees are included. In general, data refer to persons who worked during, or received pay for, any part of the pay period that includes the 12th of the month, which is standard for all Federal agencies collecting employment data from business establishments. National employment figures for Federal Government establishments, however, represent the number of persons who were paid for the last full pay period of the calendar month except for the Department of Defense, which reports the number of civilian employees on the payroll the last day of the month; intermittent Federal Government workers are counted if they performed any service during the month.
Workers on an establishment payroll who are on paid sick leave (when pay is received directly from the employer); on paid holiday or vacation; or who work during only a part of the specified pay period, even though they are unemployed or on strike during the rest of the pay period, are all counted as employed. Persons on the payroll of more than one establishment during the pay period are counted in each establishment which reports them, whether the duplication is due to turnover or dual jobholding. Persons are considered employed if they receive pay for any part of the specified pay period, but they are not considered employed if they receive no pay at all for the pay period. Since proprietors, the self-employed, and unpaid family workers do not have the status of paid employees, they are not included. Also excluded from the employed are domestic workers in households; persons who are on layoff, on leave without pay, or on strike for the entire pay period; and persons who were hired but have not yet started work during the pay period. The employment statistics for government refer to civilian employees only. All persons who meet these specifications are included in the designation "all employees," regardless of industry.
In addition to employment data for all employees, the survey also collects data on a major category of workers in each industry, differentiated primarily to ensure the expeditious collection of current statistics on hours and earnings. These groups of employees are designated production workers, construction workers, or nonsupervisory workers, depending upon the industry.
Data are collected for production workers in manufacturing and mining industries. In manufacturing, this group covers employees, up through the level of working supervisors, who engage directly in the manufacture of the establishment's product. Among those excluded from this category are persons in executive and managerial positions and persons engaged in activities such as accounting, sales, advertising, routine office work, professional and technical functions, and force-account construction. (Force-account construction is construction work performed by an establishment, primarily engaged in some business other than construction, for its own account and for use by its own employees.) Production workers in mining are defined in a similar manner.
In construction, the term "construction workers" covers workers, up through the level of working supervisors, who are engaged directly on the construction project either at the site or in shops or yards at jobs ordinarily performed by members of construction trades. Excluded from this category are executive and managerial personnel, professional and technical employees, and workers in routine office jobs.
In the remaining private sector industries (transportation, communications, and public utilities; wholesale and retail trade; finance, insurance, and real estate; and services) data are collected for nonsupervisory workers. Nonsupervisory workers include most employees except those in top executive and managerial positions.
An employment benchmark is a reasonably complete count of employment used to adjust estimates derived from a sample. Adjustment is usually done annually. The basic source of benchmark data for the CES survey is data on "all employees" collected from employers by State employment security agencies as a byproduct of the unemployment insurance (UI) system. About 98 percent of all employees on nonfarm payrolls are covered by the UI system.
Hours and earnings
The hours and earnings series are based on reports of gross payrolls and the corresponding paid hours for production workers, construction workers, or nonsupervisory workers.
Aggregate payrolls include pay before deductions for Social Security, unemployment insurance, group insurance, withholding tax, salary reduction plans, bonds, and union dues. The payroll figures also include pay for overtime, shift premiums, holidays, vacations, and sick leave paid directly by the employer to employees for the pay period reported. They exclude bonuses, commissions, and other lump-sum payments (unless earned and paid regularly each pay period or month), or other pay not earned in the pay period concerned (e.g., retroactive pay). Tips and the value of free rent, fuel, meals, or other payments in kind are not included.
Total hours during the pay period include all hours worked (including overtime hours), hours paid for standby or reporting time, and equivalent hours for which employees received pay directly from the employer for sick leave, holidays, vacations, and other leave. Overtime or other premium pay hours are not converted to straight-time equivalent hours. The concept of total hours differs from scheduled hours or hours worked. The average weekly hours derived from the total hours reflect the effects of such factors as unpaid absenteeism, labor turnover, part-time work, and strikes, as well as fluctuations in work schedules.
Overtime hours are hours worked for which premiums were paid because they were in excess of the number of hours of either the straight-time workday or workweek. Saturday and Sunday hours (or 6- and 7th-day hours) are included as overtime only if overtime premiums were paid. Holiday hours worked as overtime are not included unless they are paid for at more than the straight-time rate. Hours for which only shift differential, hazard, incentive, or similar types of premiums were paid are excluded from overtime hours. Overtime hours data are collected only from establishments in manufacturing industries.
Average hourly earnings series, derived by dividing gross payrolls by total hours, reflect the actual earnings of workers, including premium pay. They differ from wage rates, which are the amounts stipulated for a given unit of work or time. Average hourly earnings do not represent total labor costs per hour for the employer, because they exclude retroactive payments and irregular bonuses, employee benefits, and the employer's share of payroll taxes. Earnings for those employees not covered under the production worker and nonsupervisory categories are not reflected in the estimates.
Real earnings data (those expressed in 1982 dollars) result from the adjustment of average hourly and weekly earnings by means of the Bureau's Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W); they indicate the changes in the purchasing power of money earnings as a result of price changes for consumer goods and services. These data cannot be used to measure changes in living standards as a whole, which are affected by other factors such as total family income, the extension and incidence of various social services and benefits, and the duration and extent of employment and unemployment. The long-term trends of these earnings data are also affected by changing mixes of full-time/part-time workers, high-paid/low-paid workers, etc.
Straight-time average hourly earnings are approximated by adjusting average hourly earnings by eliminating only premium pay for overtime at a rate of time and one-half. Thus, no adjustment is made for other premium payment provisions such as holiday work, late shift work, and premium overtime rates other than those at time and one-half. Straight-time average hourly earnings are calculated only for manufacturing industries because data on overtime hours are not collected in other industries.
Industrial classification refers to the grouping of reporting establishments into industries on the basis of their major product or activity as determined by the establishments' percentages of total sales or receipts for the previous calendar year. This information is collected as an administrative byproduct of the UI reporting system. All data for an establishment making more than one product or engaging in more than one activity are classified under the industry of the most important product or activity, based on the percentages reported.
Industries are classified in accordance with the 1987 Standard Industrial Classification Manual, Office of Management and Budget.
These tables are based on figures supplied by the United States Census Bureau, U.S. Department of Commerce and are subject to revision by the Census Bureau.
Copyright © 2006 Photius Coutsoukis and Information Technology Associates, all rights reserved.