Tag Archives: Benefits

Wage Information Yesterday, Today, and Tomorrow

On April 16, BLS reported that median weekly earnings for full-time wage and salary workers rose 2.7 percent over the year.

On April 30, BLS reported that the Employment Cost Index for wages of private industry workers rose 3.0 percent over the year.

On May 2, BLS reported that hourly compensation in the nonfarm business sector rose 2.5 percent over the year.

On May 3, BLS reported that average hourly earnings for private industry workers rose 3.2 percent over the year.

What’s going on here? Why so much wage information? And which one is RIGHT?

At BLS, we get questions like this all the time, and the answer is usually “it depends.” There is no one answer that fits every question on wages; there are just different answers depending on what you want to measure. People come to BLS looking for all kinds of answers, and we want to provide as much information as we can. Thus, we have many measures of wages (and other forms of compensation) — a dozen, to be exact.

Do you want to know about wages for an industry? An occupation? By location? For men and women? Based on education? Adjusted for inflation? Including benefits? How wages relate to spending patterns? How wages relate to worker productivity? BLS has it all, and more.

We have so much wage information that even we get confused. So we developed a tool to make the dozen wage series a little easier to understand. It’s an interactive guide that lists all 12 data sources and 32 key details about each of those sources, like how often it is available.

I can hear you now — that’s 384 pieces of information (12 x 32). I’m just looking for one piece of information, not almost 400. And how do you fit all that information on one page, anyway?

The interactive guide limits the display to 3 sources at a time — you pick the sources you want to see.

A table showing 3 BLS sources of compensation information and data characteristics available from those sources.

Or you can pick one characteristic, like “measures available by occupation” and get an answer for all 12 data sources.

A table showing the occupational information available from several BLS data sources on compensation.

This tool is on the BLS beta site. We want you to give it a try and provide feedback. Check it out and leave us a comment. Want to know even more? Watch this video that helps make sense of BLS wage information.

Wages and Benefits in a City Near You

This started out as a blog about wages and benefits in New York City. But then I shared it with some colleagues, who thought it was too Gotham-centric. My real purpose is to highlight the data on employer costs for wages and benefits in several large metropolitan areas, including New York.

But maybe I should back up a little. Since 1986, BLS has published information on what it costs employers to employ their workforce. Employer Costs for Employee Compensation look at what employers spend on wages and benefits. Over the years, we have expanded the data to provide more industry and occupational detail and other job characteristics, such as union versus nonunion status and full-time versus part-time work. For the past decade, information has been available for private industry workers in 15 metropolitan areas, including New York. More on that in a moment.

Across the United States, private employers spent an average of $34.17 per hour worked on wages and benefits in March 2018. Of this amount, 69.5 percent ($23.76) went for wages. The rest (30.5 percent or $10.41) was for a wide range of benefits, including paid time off, insurances, retirement and savings plans, and legally required benefits (for example, the employer’s share of Social Security taxes).

There is a lot of variation around that average. For example, private employers in the financial activities industry spent an average of $49.46 per hour worked on wages and benefits, while employers in the leisure and hospitality industry spent less than one-third of that amount — $14.94. And the share of compensation dollars going toward benefits also varies — 40.4 percent for union workers, compared with 29.1 percent for nonunion workers.

Employer costs per hour worked for employee compensation, private industry, selected job characteristics, March 2018

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

So how can you use this information? If you run a business, you might compare your compensation costs to the average for your industry. And you might see how your split between wage and benefit costs stacks up. As an employee, you might also check how you fare against the average.

Private employers in the New York metropolitan area (you knew I would get there eventually) spent $45.61 per hour worked to compensate their workers — fully a third more than the national average. New York was one of three metropolitan areas to have costs in the mid-$40 range, along with Boston and Seattle. All were eclipsed by the San Jose-San Francisco-Oakland area, with average compensation costs of $56.92 per hour worked. In contrast, employers in Miami averaged $31.32.

Employer costs per hour worked for employee compensation, private industry workers in selected metropolitan areas, March 2018

Editor’s note: Data for this chart are available in the article “Compensation costs in San Jose-San Francisco-Oakland averaged $56.92 per hour in March 2018.”

How these costs are split between wages and benefits can vary for many reasons. These include the industry and occupation mix in an area, the extent of collective bargaining, local benefit practices (and legal requirements), and the generosity of benefit plans. Many benefits, such as paid leave and employer matching contributions to 401(k) plans, are tied partly to wages. The higher the wages, the higher the cost of benefits.

With this in mind, the data tell a couple of different stories. On the one hand, the share of compensation costs going toward benefits hovers around the national average (30.5 percent) in all areas, ranging from 27.7 percent in Dallas to 33.6 percent in Detroit. But the actual dollar amounts vary. Employers spend an average of $8.92 per hour worked on benefits in Miami and nearly twice that much ($17.12) in the San Francisco Bay Area. As noted, many of these costs are tied to wages.

Again, this information might be helpful to compare your compensation costs to the average in your area. Businesses might use the data when making relocation or expansion decisions. Or you might just call your friends in New York and show off how much you know about the Big Apple.

We update the national information quarterly, 3 months following the reference date. Data for the 15 metropolitan areas is available once a year — in the June release providing information for March. To keep the data consistent, I’ve used March 2018 data in this blog. The next release, with December 2018 data, is scheduled for March 19. Watch for these data coming your way soon. We also have more charts on employer costs for employee compensation.

Employer costs per hour worked for employee compensation, private industry, selected job characteristics, March 2018
Characteristic Wages Benefits
Union workers $28.42 $19.23
Nonunion workers 23.31 9.56
1–99 workers 20.87 7.92
100–499 workers 23.94 10.82
500 workers or more 32.00 17.16
Financial activities 32.53 16.93
Leisure and hospitality 11.73 3.21

Making It Easier to Find Data on Pay and Benefits

We love data at the U.S. Bureau of Labor Statistics. We have lots of data about the labor market and economy, but we sometimes wish we had more. For example, we believe workers, businesses, and public policymakers would benefit if we had up-to-date information on employer-provided training. I recently wrote about the challenges of collecting good data on electronically mediated work, or what many people call “gig” work. I know many of you could make your own list of data you wish BLS had. One topic for which we have no shortage of data is pay and benefits. In fact, we have a dozen surveys or programs that provide information on compensation. We have so much data on compensation that it can be hard to decide which source is best for a particular purpose.

Where can you get pay data on the age, sex, or race of workers? Where should you go if you want pay data for teachers, nurses, accountants, or other occupations? What about if you want occupational pay data for a specific metro area? Or if you want occupational pay data for women and men separately? What if you want information on workers who receive medical insurance from their employers? Where can you find information on employers’ costs for employee benefits? Here’s a short video to get you started.

But wait, there’s more! To make it easier to figure out which source is right for your needs, we now have an interactive guide to all BLS data on pay, benefits, wages, earnings, and all the other terms we use to describe compensation. Let me explain what I mean by “interactive.” The guide lists 12 sources of compensation data and 32 key details about those data sources. 12 x 32 = a LOT of information! Having so much information in one place can feel overwhelming, so we created some features to let you choose what you want to see.

For example, the guide limits the display to three data sources at a time, rather than all 12. You can choose which sources you want to learn about from the menus at the top of the guide.Snippet of interactive guide on BLS compensation data.

If you want to learn about one of the 32 key details across all 12 data sources, just press or click that characteristic in the left column. For example, if you choose “Measures available by occupation?” a new window will open on your screen to describe the pay data available from each source on workers’ occupations.

There are links near the bottom of the guide to help you find where to go if you want even more information about each data source.

Check out our overview of statistics on pay and benefits. The first paragraph on that page has a link to the interactive guide. We often like to say, “We’ve got a stat for that!” When it comes to pay and benefits, we have lots of stats for that. Let us know how you like this new interactive guide.

Labor Day 2018 Fast Facts

About 92 percent of civilian workers with access to paid holidays receive Labor Day as a paid holiday. Before you set out for that long holiday weekend, take a moment to look at some fast facts we’ve compiled that show 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 62.9 percent in July. 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 3.9 percent in July. After 6 months at 4.1 percent, the rate has had offsetting movements in recent months. In May, the rate hit its lowest point, 3.8 percent, since April 2000.
  • In July, there were 1.4 million long-term unemployed (those jobless for 27 weeks or more). This represented 22.7 percent of the unemployed, down from a peak of 45.5 percent in April 2010 but still above the 16-percent share seen in late 2006.
  • Among the major worker groups, the unemployment rate for teenagers was 13.1 percent in July, while the rates were 3.4 percent for adult men and 3.7 percent for adult women. The unemployment rate was 6.6 percent for Blacks or African Americans, 4.5 percent for Hispanics or Latinos, 3.1 percent for Asians, and 3.4 percent for Whites.

Job Openings

Pay and Benefits

  • Average weekly earnings rose by 3.0 percent between July 2017 and July 2018; adjusted for inflation, real average weekly earnings are up 0.1 percent during this period.
  • Civilian compensation (wage and benefit) costs increased 2.8 percent between June 2017 and June 2018; adjusted for inflation, real compensation costs decreased 0.1 percent during this period.
  • 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.
  • In March 2018, civilian workers 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 1.1 percent in 2017, continuing the historically below-average pace seen since the Great Recession. Some industries had impressive growth, however, including wireless telecommunications carriers (11.1 percent) and electronics and appliance stores (9 percent).
  • Multifactor productivity growth in the private nonfarm business sector recovered in 2017, rising 0.9 percent after falling 0.6 percent in 2016. Labor input for multifactor productivity—measured using the combined effects of hours worked and labor composition—grew 2.0 percent in 2017, outpacing the long-term 1987–2017 growth for labor input by 0.5 percentage points.

Safety and Health

  • In 2017, 14.3 percent of all workers were exposed to hazardous contaminants. The use of personal protective equipment was required for 11.8 percent of workers.

Education

  • Occupations that typically require a bachelor’s degree for entry made up 21.5 percent of employment. 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.

Unionization

  • The union membership rate—the percent of wage and salary workers who were members of unions—was 10.7 percent in 2017, unchanged from 2016. In 1983, the first year for which comparable union data are available, the union membership rate was 20.1 percent.
  • Total employer compensation costs for union workers were $47.65 and for nonunion workers $32.87 per employee hour worked. The cost of benefits accounted for 40.4 percent of total compensation or $19.23 for union workers and 29.1 percent or $9.56 for nonunion workers.

Work Stoppages

  • In the first 7 months of 2018, there were 445,000 workers involved in work stoppages that began this year. This is the largest number of workers involved in stoppages since 2000, when 394,000 workers were involved. There have been 12 stoppages beginning this year, which surpassed the 7 recorded in all of 2017.

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.

A Clearer Look at Response Rates in BLS Surveys

Hands holding a tablet computer and completing a surveyPeople know BLS for our high-quality data on employment, unemployment, price trends, pay and benefits, workplace safety, productivity, and other topics. We strive to be transparent in how we produce those data. We provide detailed information on our methods for collecting and publishing the data. This allows businesses, policymakers, workers, jobseekers, students, investors, and others to make informed decisions about how to use and interpret the data.

We couldn’t produce any of these statistics without the generous cooperation of the people and businesses who voluntarily respond to our surveys. We are so grateful for the public service they provide.

To improve transparency about the quality of our data, we recently added a new webpage on response rates to our surveys and programs. We previously published response rates for many of our surveys in different places on our website. Until now there hasn’t been a way to view those response rates together in one location.

What is a response rate, and why should I care?

A response rate is the percent of potential respondents who completed the survey. We account for the total number of people, households, or businesses we tried to survey (the sample) and the number that weren’t eligible (for example, houses that were vacant or businesses that had closed). Response rates are an important measure for survey data. High response rates mean most of the sample completed the survey, and we can be confident the statistics represent the target population. Low response rates mean the opposite, and data users may want to consider other sources of information.

Do response rates tell the whole story?

A low response rate may mean the data don’t represent the target population well, but not necessarily. How much a low response rate affects how well the estimates represent the population is called nonresponse bias. Some important research by Robert M. Groves and Emilia Peytcheva published in the January 2008 issue of Public Opinion Quarterly looked at the connection between response rates and nonresponse bias in 59 studies. The authors found that high response rates can reduce the risk of bias, but there is not a strong correlation between response rate and nonresponse bias. Some surveys had a very low response rate but did not have evidence of high nonresponse bias. Other surveys had high nonresponse bias despite high response rates.

This means we should look at response rates with other measures of data quality and bias. BLS has studied nonresponse bias for many years. We have links to many of those studies in our library of statistical working papers.

What should I be looking for on the new page?

With response rates from multiple surveys in a single place, you can look for patterns across surveys and across time. For example, across every graph we see that response rates are declining over time. This is happening for nearly all surveys, government and private, on economic and other topics. It is simply getting harder to persuade respondents to answer our surveys.

Individual survey response rates are also interesting compared with other BLS surveys. We see that some surveys have higher response rates than others. To understand why this might be, we’ll want to look at the differences between the surveys. Each survey has specific collection procedures that affect response rates. For example, the high response rate for the Annual Refiling Survey (shown as ARS in the second chart) may catch your eye. When you see that it has a 12-month collection period and is mandatory in 26 states, the rate makes more sense.

We also can see how survey-specific changes have affected a survey’s response rate. For example, we see a drop in the response rate for the Telephone Point of Purchase Survey around 2012. This drop likely resulted from a change in sample design, as the survey moved from a sample of landline telephones to a dual-frame sample with both landlines and cell phones. Because the response rate for this survey continues to decline, we are developing a different approach for collecting the needed data.

What should I know before jumping into the new page?

There’s a lot of information! We’ve tried to make it as user friendly as possible, including a glossary page with definitions of terms and a page to show how each survey calculates their response rates. On the graphs, you can isolate a single survey by hovering over each of the lines. You can also download the data shown in each graph to examine it more closely.

We hope you will find this page helpful for understanding the quality of BLS data. Please let us know how you like it!