Topic Archives: Earnings and Wages

Ensuring Security and Fairness in the Release of Economic Statistics

The U.S. Bureau of Labor Statistics is the gold standard of accurate, objective, relevant, timely, and accessible statistical data, and I am committed to keeping it that way. As Commissioner, it is my obligation to do everything possible to protect the integrity of our data and to make sure everyone has equitable access to these data.

One step toward equitable access and data security is coming soon; on March 1, 2020, the U.S. Department of Labor (DOL) will eliminate all electronics from the lock-up facility where we allow members of the media to review economic releases and prepare news stories before the official release of the data. We are changing the procedures to better protect our statistical information from premature disclosure and to ensure fairness in providing our information to the public.

For many years the news media have helped BLS and the Employment and Training Administration (ETA) inform the public about our data. Since the mid-1980s, BLS and ETA have provided prerelease data access to news organizations under strict embargoes, known as “lock-ups.” We have provided this early access consistent with federal Statistical Policy Directives of the Office of Management and Budget. BLS uses the lock-up for several major releases each month, including the Employment Situation and Consumer Price Index. ETA uses the lock-up for the Unemployment Insurance Weekly Claims data. These economic data have significant commercial value and may affect the movement of commodity and financial markets upon release.

Because of technological advancements, the current lock-up procedure creates an unfair competitive advantage for lock-up participants who provide BLS data to trading companies. Today, the internet permits anyone in the world to obtain economic releases for themselves directly from the BLS or DOL websites. However, unlike media organizations with computer access in the current lock-up, others who use the data do not have up to 30 minutes before the official release to process the data. Their postings about the data may lag behind those released directly from the lock-up at official publication time, 8:30 a.m. Eastern. High-speed algorithmic trading technology now gives a notable competitive advantage to market participants who have even a few microseconds head start. To eliminate this advantage and further protect our data from inadvertent or purposeful prerelease, no computers or any other electronic devices will be allowed in the lock-up.

In recent years, BLS and ETA have devoted significant resources to introducing improved technologies that strengthen our infrastructure and ensure data are posted to the BLS or DOL websites immediately following the official release time.

We at BLS and ETA are committed to the principle of a level playing field—our data must be made available to all users at the same time. We are equally committed to protecting our data. We are now positioned to continue helping the media produce accurate stories about the data, while also ensuring that all parties, including the media, businesses, and the general public, will have equitable and timely access to our most sensitive data.

You can find more details about these changes in our notice to lock-up participants. We also have a set of questions and answers about the changes to the lock-up procedures.

New Data on Employment and Wages in U.S. Establishments with Foreign Ownership

Did you know that U.S. establishments at least partially owned by foreign companies employed 5.5 million U.S. workers in 2012? That was 5.0 percent of U.S. private-sector employment. The U.S. Bureau of Labor Statistics recently partnered with the Bureau of Economic Analysis to produce new data on foreign direct investment in the United States. These two agencies created a new, richer dataset on employment, wages, and occupations in U.S. establishments that have at least one foreign owner.

So how do we define foreign direct investment anyway? In the simplest sense, it is when a U.S. establishment has an owner from another country with at least a 10-percent stake. We consider any establishment that does not meet this threshold as domestically owned. The new data are more detailed than any data previously available on foreign direct investment in the United States. This first set of data is for 2012, but the agencies plan to work together to produce more recent data soon.

Nearly two-thirds of jobs in establishments with foreign ownership had European ownership (3.5 million jobs). The United Kingdom accounted for 874,000 of these jobs. Asia accounted for 17 percent (936,000 jobs) of jobs in U.S. establishments with foreign ownership. Canada accounted for 12 percent (671,000 jobs). The remaining world regions together accounted for less than 8 percent.

Now let’s look at how employment in establishments with foreign ownership breaks down within the United States. The map below shows the percent of private employment in establishments with foreign ownership in each state. South Carolina had the largest share of private employment in establishments with foreign ownership, 8.0 percent. Other states with large shares include New Hampshire, Michigan, Connecticut, New Jersey, and Indiana.

Map showing  each state's percent of private employment in establishments with foreign ownership, 2012

Editor’s note: Data for this map are available in the table below.

Each state’s percent of employment in establishments with foreign ownership depends in part on the industry mix in the state. The chart below shows the percent of each industry’s employment in establishments with foreign ownership. In mining, quarrying, and oil and gas extraction, 14.7 percent of employment is in establishments with foreign ownership. A large share of employment in Alaska is in this industry. Alaska’s share of employment in establishments with foreign ownership, 5.7 percent, is above the national average. Alaska’s vast energy resources may play a role in its share of employment in establishments with foreign ownership.

About 13.2 percent of all employees in manufacturing work in establishments with foreign ownership. Michigan has a large share of employment in manufacturing, and also a large share of employment in establishments with foreign ownership.

Chart showing percent of private employment in establishments with foreign ownership, by industry, 2012

Editor’s note: Data for this chart are available in the table below.

Now let’s turn from employment to wages. The map below shows how wages in establishments with foreign ownership compare with wages in domestically owned establishments across the country. We make this comparison by calculating the ratio of what workers make in average wages in establishments with foreign ownership compared to the average wage in domestically owned establishments. Wage ratios greater than one mean the average for establishments with foreign ownership is higher than for domestically owned establishments. The U.S. wage ratio in 2012 was 1.57, and every state had a wage ratio greater than one. The highest wage ratio was in New York, at 1.98. At the other end of the spectrum, Vermont had a wage ratio of 1.05.

Map showing each state's ratio of average wages in establishments with foreign ownership to domestically owned establishments, 2012

Editor’s note: Data for this map are available in the table below.

Does this mean every establishment with foreign ownership pays higher wages than domestically owned establishments? Let’s analyze wage ratios by industry. We see that the health care and social assistance industry had a wage ratio of 0.86 in 2012. All other major industry groups had wage ratios of 1.00 or higher. The finance and insurance industry had a wage ratio of 1.82.

Want to know more about these data? See our Spotlight on Statistics, “A look at employment and wages in U.S. establishments with foreign ownership.”

Chart showing ratio of average wages in establishments with foreign ownership to domestically owned establishments, by industry, 2012

Editor’s note: Data for this chart are available in the table below.

BLS and the Bureau of Economic Analysis hope to continue this interagency collaboration. Our goal is to merge and analyze more recent data from both agencies. When agencies work together to produce new datasets with little increase in cost to the public, all data users benefit. Producing accurate, objective, relevant, timely, and accessible products is the BLS mission. This collaboration to produce new relevant data allows us to improve our service to the American people.

Percent of private employment in establishments with foreign ownership, 2012
StateEmployment share

National

5.0%

Alabama

5.4

Alaska

5.7

Arizona

3.9

Arkansas

4.5

California

4.2

Colorado

4.6

Connecticut

6.5

Delaware

6.0

District of Columbia

3.4

Florida

3.6

Georgia

5.5

Hawaii

6.0

Idaho

2.9

Illinois

5.1

Indiana

6.4

Iowa

4.0

Kansas

5.7

Kentucky

6.2

Louisiana

3.9

Maine

6.1

Maryland

4.7

Massachusetts

6.3

Michigan

6.6

Minnesota

4.0

Mississippi

3.4

Missouri

4.0

Montana

1.8

Nebraska

3.6

Nevada

3.8

New Hampshire

6.9

New Jersey

6.5

New Mexico

3.0

New York

5.8

North Carolina

6.2

North Dakota

3.8

Ohio

5.3

Oklahoma

3.6

Oregon

3.4

Pennsylvania

5.5

Rhode Island

6.1

South Carolina

8.0

South Dakota

2.1

Tennessee

5.5

Texas

5.3

Utah

4.0

Vermont

3.7

Virginia

5.1

Washington

4.0

West Virginia

4.8

Wisconsin

3.5

Wyoming

3.8
Percent of private employment in establishments with foreign ownership, by industry, 2012
IndustryEmployment share

Mining, quarrying, and oil and gas extraction

14.7%

Manufacturing

13.2

Management of companies and enterprises

9.6

Wholesale trade

9.0

Information

7.8

Finance and insurance

7.5

Utilities

7.3

Transportation and warehousing

6.3

Administrative and waste services

6.0

Professional, scientific, and technical services

5.5

Total private

5.0

Retail trade

4.7

Real estate and rental and leasing

2.2

Construction

1.8

Accommodation and food services

1.6

Other services (except public administration)

1.3

Agriculture, forestry, fishing, and hunting

1.0

Health care and social assistance

0.9

Arts, entertainment, and recreation

0.7

Educational services

0.6
Ratio of average wages in establishments with foreign ownership to domestically owned establishments, 2012
StateWage ratio

National

1.57

Alabama

1.44

Alaska

1.63

Arizona

1.28

Arkansas

1.43

California

1.49

Colorado

1.53

Connecticut

1.53

Delaware

1.78

District of Columbia

1.08

Florida

1.52

Georgia

1.36

Hawaii

1.06

Idaho

1.30

Illinois

1.61

Indiana

1.56

Iowa

1.48

Kansas

1.56

Kentucky

1.36

Louisiana

1.67

Maine

1.26

Maryland

1.28

Massachusetts

1.46

Michigan

1.84

Minnesota

1.50

Mississippi

1.63

Missouri

1.55

Montana

1.63

Nebraska

1.35

Nevada

1.47

New Hampshire

1.39

New Jersey

1.64

New Mexico

1.22

New York

1.98

North Carolina

1.47

North Dakota

1.55

Ohio

1.49

Oklahoma

1.40

Oregon

1.41

Pennsylvania

1.43

Rhode Island

1.31

South Carolina

1.43

South Dakota

1.45

Tennessee

1.42

Texas

1.80

Utah

1.45

Vermont

1.05

Virginia

1.23

Washington

1.40

West Virginia

1.33

Wisconsin

1.38

Wyoming

1.72
Ratio of average wages in establishments with foreign ownership to domestically owned establishments, by industry, 2012
IndustryWage ratio

Finance and insurance

1.82

Construction

1.62

Total private

1.57

Accommodation and food services

1.51

Real estate and rental and leasing

1.50

Arts, entertainment, and recreation

1.45

Other services (except public administration)

1.44

Agriculture, forestry, fishing, and hunting

1.40

Wholesale trade

1.39

Professional, scientific, and technical services

1.39

Mining, quarrying, and oil and gas extraction

1.28

Management of companies and enterprises

1.23

Retail trade

1.20

Educational services

1.19

Manufacturing

1.18

Utilities

1.15

Administrative and waste services

1.13

Information

1.05

Transportation and warehousing

1.00

Health care and social assistance

0.86

New App for Career Information Now Available

Icon for CareerInfo app

BLS has partnered with the U.S. Department of Labor’s Office of the Chief Information Officer to develop the CareerInfo app that is now available from the Apple App Store and Google Play. CareerInfo presents information from the Occupational Outlook Handbook, the most popular BLS resource for career information.

The CareerInfo app helps you find data and information about employment, pay, job outlook, how to become one, and more for hundreds of detailed occupations. You can browse by occupational groups and titles or search by occupation or keywords. Within occupational groups, the app allows you to sort by occupation title, projected growth, and typical education or median pay.

Future updates will add features that will let you personalize the app by filtering searches and by “liking,” saving, viewing, and comparing favorites.

Check out the new CareerInfo app and explore the occupational information and data produced by BLS. You’ll be glad you did!

Labor Day 2019 Fast Facts

I have been Commissioner of Labor Statistics for 5 months now, and I continue to be amazed by the range and quality of data we publish about the U.S. labor market and the well-being of American workers. As we like to say at BLS, we really do have a stat for that! We won’t rest on what we have done, however. We continue to strive for more data and better data to help workers, jobseekers, students, businesses, and policymakers make informed decisions. Labor Day is a good time to reflect on where we are. This year is the 125th anniversary of celebrating Labor Day as a national holiday. Before you set out to enjoy the long holiday weekend, take a moment to look at some fast facts we’ve compiled on the current picture of our labor market.

Working

Working or Looking for Work

  • The civilian labor force participation rate—the share of the population working or looking for work—was 63.0 percent in July 2019. The rate had trended down from the 2000s through the early 2010s, but it has remained fairly steady since 2014.

Not Working

  • The unemployment rate was 3.7 percent in July. In April and May, the rate hit its lowest point, 3.6 percent, since 1969.
  • In July, there were 1.2 million long-term unemployed (those jobless for 27 weeks or more). This represented 19.2 percent of the unemployed, down from a peak of 45.5 percent in April 2010 but still above the 16-percent share in late 2006.
  • Among the major worker groups, the unemployment rate for teenagers was 12.8 percent in July 2019, while the rates were 3.4 percent for both adult women and adult men. The unemployment rate was 6.0 percent for Blacks or African Americans, 4.5 percent for Hispanics or Latinos, 2.8 percent for Asians, and 3.3 percent for Whites.

Job Openings

Pay and Benefits

  • Average weekly earnings rose by 2.6 percent from July 2018 to July 2019. After adjusting for inflation in consumer prices, real average weekly earnings were up 0.8 percent during this period.
  • Civilian compensation (wage and benefit) costs increased 2.7 percent in June 2019 from a year earlier. After adjusting for inflation, real compensation costs rose 1.1 percent over the year.
  • Paid leave benefits are available to most private industry workers. The access rates in March 2018 were 71 percent for sick leave, 77 percent for vacation, and 78 percent for holidays.
  • About 91 percent of civilian workers with access to paid holidays receive Labor Day as a paid holiday.
  • In March 2018, civilian workers with employer-provided medical plans paid 20 percent of the cost of medical care premiums for single coverage and 32 percent for family coverage.

Productivity

  • Labor productivity—output per hour worked—in the U.S. nonfarm business sector grew 1.8 percent from the second quarter of 2018 to the second quarter of 2019.
  • Some industries had much faster growth in 2018, including electronic shopping and mail-order houses (10.6 percent) and wireless telecommunications carriers (10.1 percent).
  • Multifactor productivity in the private nonfarm business sector rose 1.0 percent in 2018. That growth is 0.2 percentage point higher than the average annual rate of 0.8 percent from 1987 to 2018.

Safety and Health

Unionization

  • The union membership rate—the percent of wage and salary workers who were members of unions—was 10.5 percent in 2018, down by 0.2 percentage point from 2017. In 1983, the first year for which comparable union data are available, the union membership rate was 20.1 percent.

Work Stoppages

  • In the first 7 months of 2019, there have been 307,500 workers involved in major work stoppages that began this year. (Major work stoppages are strikes or lockouts that involve 1,000 or more workers and last one full shift or longer.) For all of 2018, there were 485,200 workers involved in major work stoppages, the largest number since 1986, when about 533,100 workers were involved.
  • There have been 15 work stoppages beginning in 2019. For all of 2018, 20 work stoppages began during the year.

Education

  • Occupations that typically require a bachelor’s degree for entry made up 22 percent of employment in 2018. This educational category includes registered nurses, teachers at the kindergarten through secondary levels, and many management, business and financial operations, computer, and engineering occupations.
  • For 18 of the 30 occupations projected to grow the fastest between 2016 and 2026, some postsecondary education is typically required for entry. Be sure to check out our updated employment projections, covering 2018 to 2028, that we will publish September 4!

From an American worker’s first job to retirement and everything in between, BLS has a stat for that! Want to learn more? Follow us on Twitter @BLS_gov.

Building a Business? Start Here

You have an idea.

It’s time to get serious about it.

Entrepreneurial drive got you to this point, but now it’s time to chart a plan. For that you need a reliable overview of the factors that can lead to a flourishing business — or work against it.

The U.S. Census Bureau’s Business Builder application is designed to provide small business owners with key data to give them a clear-eyed view of their potential market. This data-mapping tool combines data from the Census Bureau’s American Community Survey, Economic Census, and County Business Patterns, and the U.S. Department of Agriculture’s National Agricultural Statistics Service.

For version 2.6 of the tool, released this month, the Bureau of Labor Statistics has collaborated with the Census Bureau to include data from our Quarterly Census of Employment and Wages (QCEW). QCEW is based on quarterly mandatory reports to the Unemployment Insurance systems in each state, covering more than 95 percent of the jobs in the U.S. economy. It is the most complete and current source of data on employment and wages at a detailed geographic and industry level.

To help illustrate why this tool is so useful, and why the data from the QCEW broadens that usefulness, I’ll make up an example.

Ever since you can remember, your grandmother, who was born and raised just outside of Naples, has fed you a type of pizza full of unusual flavors that has never been equaled in all your travels. As you grew and came into your own as a cook, she entrusted you with her secret knowledge, like a magician passing along her repertoire to a favored protégé.

Ever since, you’ve dreamed of sharing the pleasures of that delicacy with the world, and you’re going to start with a pizzeria somewhere near your home in Olympia, Washington. You may ask yourself: What exactly does the restaurant market look like in Olympia? Who are my potential customers? What kind of wages do they earn?

The Census Business Builder is a good place to start.

Census Business Builder home screen

Here, you can enter the type of establishment you’d like to research, as well as the area where you intend to do business. You find that data are not available for Olympia, but knowing that Olympia is the county seat, you are able to search in Thurston County.

The resulting map provides data on income, education, wages, and perhaps most importantly for you, the number of similar establishments in the area – also known as your competition.

Map of Thurston County, Washington, showing Census Business Builder search results

With the new QCEW data, another crucial batch of information is at your fingertips: more up-to-date establishment counts, employment numbers, and wages. It also provides an important metric known as the location quotient. This measure lets you compare an industry’s employment concentration or wages in your search area with the country as a whole. Will you be able to hire enough staff? What might you need to pay them if you want the best in the business?

Map of Thurston County, Washington, showing Census Business Builder search results with QCEW location quotient

The possibilities advance from this example as far as your entrepreneurial mind wants to take them. It is you, after all, who will transform these numbers into the real-world business that fulfills your vision. Our job as public servants is to give you the most relevant tools to realize that transformation. We’re grateful for the opportunity to collaborate with the Census Bureau to bring you this vital information in this user-friendly format.

The Census Business Builder is updated twice per year using feedback that comes from customers and stakeholders, including small business owners, trade associations and other government agencies. The update also adds QCEW data into the Regional Analyst version of the tool, which is designed for chambers of commerce and regional planning staff who need a broad portrait of the people and businesses in their area. The December release, for example, will add more QCEW features to the Regional Analyst version.

BLS publishes data from the QCEW program every quarter in the County Employment and Wages news release. QCEW data are available through our Open Data Access and the QCEW Databases.