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Earnings


   

Like other characteristics, earnings differ by industry, the result of a highly complicated process that reflects a number of factors. For example, earnings may vary due to the nature of occupations in the industry, average hours worked, geographical location, workers' average age, educational requirements, industry profits, and union penetration of the workforce. In general, wages are highest in metropolitan areas to compensate for the higher cost of living. Also, as would be expected, industries that employ a large proportion of unskilled minimum-wage or part time workers tend to have lower earnings.

The difference in earnings of all wage and salary workers in computer systems design and related services, which averaged $1,112 a week in 2002, and those in food service and drinking places, where the weekly average was $359, provide a good illustration of how various factors can affect earnings. The difference is so large primarily because computer systems design and related services establishments employ more highly skilled, full-time workers, while food service and drinking places employ many lower skilled, part-time workers. In addition, many workers in food service and drinking places are able to supplement their low wages with money they receive as tips, which is not included in the industry wages data. Table 8 highlights the industries with the highest and lowest average weekly earnings.

Table 8. Average weekly earnings of production or nonsupervisory workers
on private nonfarm payrolls, selected industries, 2002

Industry Earnings
All industries 610
 
Industries with high earnings
Computer systems design and related services 1112
Management, scientific, and technical consulting services 992
Securities, commodities, and other investments 971
Aerospace product and parts manufacturing 952
Pharmaceutical and medicine manufacturing 940
Software publishers 921
Computer and electronic product manufacturing 859
Telecommunications 836
 
Industries with low earnings
Textile mills and products 446
Grocery stores 424
Clothing, accessory, and general merchandise stores 418
Hotels and other accommodations 410
Agriculture, forestry, fishing, and hunting 376
Food services and drinking places 359
Apparel manufacturing 348
Child day care services 348

Employee benefits, once a minor addition to wages and salaries, continue to grow in diversity and cost. In addition to traditional benefits-including paid vacations, life and health insurance, and pensions-many employers now offer various benefits to accommodate the needs of a changing labor force. Such benefits include childcare, employee assistance programs that provide counseling for personal problems, and wellness programs that encourage exercise, stress management, and self-improvement. Benefits vary among occupational groups, full- and part-time workers, public and private sector workers, regions, unionized and nonunionized workers, and small and large establishments. Data indicate that full-time workers and those in medium-sized and large establishments-those with 100 or more workers-receive better benefits than do part-time workers and those in smaller establishments.

Union penetration of the workforce varies widely by industry, and it also may play a role in earnings and benefits. In 2002, about 14.5 percent of workers throughout the Nation were union members or covered by union contracts. As table 9 demonstrates, union affiliation of workers varies widely by industry. Almost 45 percent of the workers in air transportation were union members, the highest rate of all the industries, followed by 38.5 percent in educational services, and 36.9 percent in steel manufacturing. Industries with the lowest unionization rate include software publishers, 0 percent; food services and drinking places, 1.8 percent; and computer systems design and related services, 1.9 percent.

Table 9. Union members and other workers covered by union contracts
as a percent of total employment, selected industries, 2002

Industry Percent union members or covered by union contract
All industries 14.5
 
Industries with high unionization rates
Air transportation 44.8
Educational services 38.5
Steel manufacturing 36.9
Government 35.2
Motor vehicle and parts manufacturing 32.3
 
Industries with low unionization rates
Banking 2.1
Advertising and public relations services 2.0
Computer systems design and related services 1.9
Food services and drinking places 1.8
Software publishers 0.0

 

Information courtesy of the U.S. Department of Labor.

 

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