Employment Changes by Earnings Change in employment by occupation, industry, and earnings quartile, 2000–05 An examination of employment changes in occupations and industries by earnings quartiles provides new insight into distinguishing between higher paying “good” jobs and lower paying “bad” jobs By Randy E. Ilg Randy E. Ilg is an economist in the Division of Labor Force Statistics, Bureau of Labor Statistics. E-mail: Ilg.Randy@bls.gov T he aftermaths of the last two recessions were marked by at least two similarities— the anemic pace of job growth and dissension among data users and policy makers alike regarding the quality of jobs that were being created once the labor market began to expand. From mid- to late-2004, a number of articles on the quality of jobs surfaced. These reports usually associated a particular industry or occupational category with their respective relative earnings (either the mean or median earnings figure) as the criteria for distinguishing between “good jobs” and “bad jobs.” Many of the articles cited employment and earnings data produced by the Bureau of Labor Statistics (BLS). Most of the attempts to measure the quality of new jobs focused on changes in industry employment, as measured by the Current Employment Statistics survey ( CES or establishment survey) or on occupational data from the Current Population Survey (CPS or household survey). This article approaches the subject from the perspective of how the composition of industry or occupational employment changed across the earnings spectrum. Determining where employment growth (or decline) occurred in the earnings distribution adds another dimension to the analysis of the nature of job growth. Many industries and occupations possess extensive earnings distributions, and assessments that base the “quality of jobs” in a particular industry or occupation on a single earnings figure (either mean or median) are somewhat problematic. For example, the median weekly earnings figures for construction and manufacturing workers have been consistently higher than the median wage for all wage and salary workers. Based on a single earnings estimate (the median earnings figure for the particular industry) and given the labor market developments over the past few years in these industries, it would not be unreasonable to assume that jobs paying more than the overall median wage were created in construction and lost in manufacturing. An examination of CPS employment data from 2000–2005 by earnings quartiles, however, indicates that most of the employment growth in construction occurred in jobs that paid less than the median weekly wage for all wage and salary workers ($577 in 2005). In manufacturing, where job loss from 2000 to 2005 totaled 3.3 million, factory employment declined across the entire range of earnings quartiles. Furthermore, CPS data show that women accounted for nearly all of the net employment growth above the overall median wage, whereas men accounted for most of the net growth below the median. Methodology In this analysis of job growth, wage and salary employment from the CPS for 2000 and 2005 were tabulated by occupation and by industry from the outgoing rotation groups in the CPS sample.1 These data were further partitioned into four fairly equal-sized groups based on weekly earnings quartiles. Quartiles, as referred to in this study, adhere to the following properties: The upper limit of earnings for the first quartile is the Monthly Labor Review December 2006 21 Employment Changes by Earnings level for which 25 percent of the population of employed wage and salary workers has lower earnings, and 75 percent have higher earnings. The cutoff value for the lowest-paid quarter of employment in 2000 was $303. The upper limit of the second quartile ($498), also referred to as the median, evenly divided employment.2 Table 1 displays the earnings values (cutoffs) that nearly evenly divided occupational employment of wage and salary workers in 2000 into four groups of 30.5 million each. The upper limit of the third quartile ($782) is the level for which 75 percent of the population had lower earnings, and 25 percent had higher earnings. The upper limit of the fourth quartile is the level for which 100 percent of the population had lower earnings. This figure also is the highest level of earnings reported. For reasons of confidentiality, the estimate is not available in public use microdata files, nor is it presented in this analysis because it is not needed to determine the level of employment. Data for 2005 also were partitioned in this manner but were based on the corresponding earnings figures for that particular year, rather than the earnings figures used to divide employment in 2000. (Nominal earnings seldom remain the same year after year.) The change in occupational employment from 2000 to 2005 was calculated and recorded in the bottom third of table 1. Employment data by intermediate industry detail for 2000 and 2005 are shown in a similar format in table 2. The tabulations are structured such that they can be examined for the change in employment by occupation or by industry as well as the change for a given earnings quartile, an integral part of this analysis. Tables 3 and 4 provide the distribution of employment by occupation or industry for each earnings quartile. It is important to note that the methodology and data set used in this analysis combine to offer a new approach in assessing the nature of job growth. Any overall conclusion or interpretation of whether most net “new” jobs were “good” jobs or “bad” jobs is constrained by the nature of quartiles and medians; that is, half of the employment growth occurred above the median and half below. Occupational employment changes From 2000–2005, wage and salary employment (as measured by the CPS) grew by 3.8 million. From an occupational perspective, employment in service occupations accounted for the bulk of the net increase, 2.3 million.3 Elsewhere, employment rose by about 1.9 million in professional and related occupations and by nearly 1.3 million in natural resources, construction, and maintenance occupations. In addition, employment among management, business, and financial operations occupations increased by 845,000. In contrast to the employment gains in these four broad occupational groups, wage and salary employment declined 22 Monthly Labor Review December 2006 by more than 2 million in production occupations and by nearly a million in office and administrative support occupations. (See table 1.) Most of the employment growth in service occupations (2.3 million) took place in three intermediate occupation groups: food preparation and serving related occupations (793,000), healthcare support occupations (625,000), and personal care and service occupations (442,000). The bulk of employment growth in those three categories (over 80 percent) occurred in jobs that paid below the overall median weekly earnings figure of $577 in 2005. As a result, the share of employment that consisted of service occupations in the lower earnings quartiles increased dramatically, by 1.7 percentage points in the second quartile and by nearly 3 percentage points in the bottom quartile. Despite substantial employment growth in service occupations over the 5-year period, a relatively small part (381,000) of that increase occurred in jobs paying above the overall median wage. (See tables 1 and 3.) The net employment gain of 1.9 million among professional and related occupations principally occurred in education, training, and library occupations (852,000) and in healthcare practitioner and technical occupations (826,000). Threequarters of the growth in these two intermediate occupations (1.3 million) occurred in jobs that paid more than the overall median wage of $577. Thus, employment shares for professional and related occupations rose in the third quartile and the highest quartile by 1.1 and 1.5 percentage points, respectively. Not all professional and related occupations contributed to job growth, however. An employment decline of 281,000 in architecture and engineering occupations resulted in decreased shares of employment for those occupations primarily in earnings quartiles above the overall median weekly wage. Nearly all of the increase in wage and salary employment among natural resources, construction, and maintenance occupations (1.3 million) occurred in construction and extraction occupations (1.1 million). However, most of that employment growth (about a million) was in jobs that paid below the median weekly wage, rather than above it. Thus, the share of employment made up of construction and extraction occupations in earnings quartiles below the median also rose, by about 1.7 percentage points in the second quartile and by 1.2 percentage points in the bottom quartile. In contrast, most of the employment growth in management, business, and financial operations occupations (845,000) occurred in jobs that paid above the overall median wage. Over the 2000–2005 period, the large decline in wage and salary employment in production occupations (– 2.1 million) occurred across all earnings quartiles and resulted in fairly equal decreases in these occupations’ shares of employment in each earnings quartile. Those declining shares ranged from Table 1. Employed wage and salary workers by occupation and earnings quartile in 2000 and 2005 and change in employment from 2000 to 2005 [Numbers in thousands] Total employed, 2000 First quartile Second quartile (median) Upper limit of earnings ...................................................... Total employed .......................................................................... ... 122,089 $303 30,519 $498 30,525 $782 30,521 (1) 30,524 Management, business, and financial operations occupations ...... Management occupations ............................................................. Business and financial operations occupations ........................... Professional and related occupations .............................................. Computer and mathematical occupations ..................................... Architecture and engineering occupations ................................... Life, physical, and social science occupations ........................... Community and social services occupations ............................... Legal occupations ......................................................................... Education, training, and library occupations ................................ Arts, design, entertainment, sports, and media occupations ...... Healthcare practitioner and technical occupations ...................... Service occupations ......................................................................... Healthcare support occupations ................................................... Protective service occupations .................................................... Food preparation and serving related occupations ...................... Building and grounds cleaning and maintenance occupations .... Personal care and service occupations ....................................... Sales and office occupations ........................................................... Sales and related occupations ..................................................... Office and administrative support occupations ............................ Natural resources, construction, and maintenance occupations .... Farming, fishing, and forestry occupations .................................. Construction and extraction occupations .................................... Installation, maintenance, and repair occupations ...................... Production, transportation, and material moving occupations ........ Production occupations ................................................................ Transportation and material moving occupations ......................... 15,110 10,497 4,613 24,420 3,194 2,874 1,111 1,908 1,140 6,961 1,884 5,349 18,748 2,346 2,552 6,568 4,351 2,931 33,000 13,140 19,860 11,621 1,021 6,189 4,411 19,190 11,062 8,128 982 669 313 3,148 129 86 100 267 81 1,494 381 610 9,694 1,008 504 4,335 2,128 1,719 10,302 5,126 5,176 1,734 576 759 398 4,659 2,365 2,294 1,905 1,194 712 3,784 267 259 156 453 153 1,125 333 1,038 5,321 969 625 1,602 1,440 685 9,966 2,718 7,248 3,098 297 1,765 1,035 6,452 3,914 2,538 4,023 2,499 1,524 7,039 799 685 326 641 288 2,014 514 1,771 2,458 298 718 485 603 354 8,080 2,597 5,484 3,829 108 2,063 1,658 5,092 3,046 2,046 8,200 6,135 2,065 10,449 1,998 1,843 528 547 619 2,329 656 1,929 1,275 72 705 146 180 172 4,652 2,699 1,953 2,961 40 1,602 1,318 2,987 1,739 1,249 Total employed, 2005 First quartile Second quartile (median) Third quartile Highest quartile Upper limit of earnings ...................................................... Total employed .......................................................................... ... 125,889 $342 31,470 $577 31,473 $915 31,473 (1) 31,474 Management, business, and financial operations occupations ...... Management occupations ............................................................. Business and financial operations occupations ........................... Professional and related occupations .............................................. Computer and mathematical occupations ..................................... Architecture and engineering occupations ................................... Life, physical, and social science occupations ........................... Community and social services occupations ............................... Legal occupations ......................................................................... Education, training, and library occupations ................................ Arts, design, entertainment, sports, and media occupations ...... Healthcare practitioner and technical occupations ...................... Service occupations ......................................................................... Healthcare support occupations ................................................... Protective service occupations .................................................... Food preparation and serving related occupations ...................... Building and grounds cleaning and maintenance occupations .... Personal care and service occupations ....................................... Sales and office occupations ........................................................... Sales and related occupations ..................................................... Office and administrative support occupations ............................ Natural resources, construction, and maintenance occupations .... Farming, fishing, and forestry occupations .................................. Construction and extraction occupations .................................... Installation, maintenance, and repair occupations ...................... Production, transportation, and material moving occupations ........ Production occupations ................................................................ Transportation and material moving occupations ......................... See footnote at end of table. 15,955 10,921 5,034 26,271 3,067 2,593 1,305 2,100 1,261 7,813 1,957 6,175 21,074 2,971 2,843 7,361 4,525 3,373 32,541 13,630 18,911 12,907 898 7,296 4,713 17,142 9,007 8,135 995 659 336 3,462 103 83 114 325 86 1,653 442 656 10,930 1,323 526 4,921 2,285 1,875 9,861 5,110 4,751 2,055 433 1,161 462 4,167 1,876 2,291 2,060 1,249 811 3,963 242 228 163 470 161 1,304 325 1,072 6,030 1,197 723 1,726 1,488 896 9,776 2,840 6,936 3,813 313 2,348 1,152 5,831 3,230 2,601 4,343 2,664 1,679 7,607 712 623 387 721 325 2,351 527 1,962 2,735 359 783 562 583 448 8,054 2,677 5,377 4,181 109 2,267 1,806 4,551 2,515 2,036 8,557 6,349 2,208 11,239 2,011 1,659 642 584 690 2,505 663 2,486 1,379 93 811 152 169 154 4,849 3,002 1,847 2,858 43 1,521 1,294 2,592 1,385 1,207 Occupation Occupation Third quartile Monthly Labor Review Highest quartile December 2006 23 Employment Changes by Earnings Table 1. Continued—Employed wage and salary workers by occupation and earnings quartile in 2000 and 2005 and change in employment from 2000 to 2005 [Numbers in thousands] Occupation Change in employment, 2000–2005 First quartile Second quartile (median) Third quartile Highest quartile Total .......................................................................................... 3,800 951 948 952 950 Management, business, and financial operations occupations ...... Management occupations ............................................................. Business and financial operations occupations ........................... Professional and related occupations .............................................. Computer and mathematical occupations ..................................... Architecture and engineering occupations ................................... Life, physical, and social science occupations ........................... Community and social services occupations ............................... Legal occupations ......................................................................... Education, training, and library occupations ................................ Arts, design, entertainment, sports, and media occupations ...... Healthcare practitioner and technical occupations ...................... Service occupations ......................................................................... Healthcare support occupations ................................................... Protective service occupations .................................................... Food preparation and serving related occupations ...................... Building and grounds cleaning and maintenance occupations .... Personal care and service occupations ....................................... Sales and office occupations ........................................................... Sales and related occupations ..................................................... Office and administrative support occupations ............................ Natural resources, construction, and maintenance occupations .... Farming, fishing, and forestry occupations .................................. Construction and extraction occupations .................................... Installation, maintenance, and repair occupations ...................... Production, transportation, and material moving occupations ........ Production occupations ................................................................ Transportation and material moving occupations ......................... 845 424 421 1,851 –127 –281 194 192 121 852 73 826 2,326 625 291 793 174 442 –459 490 –949 1,286 –123 1,107 302 –2,048 –2,055 7 13 –10 23 314 –26 –3 14 58 5 159 61 46 1,236 315 22 586 157 156 –441 –16 –425 321 –143 402 64 –492 –489 –3 155 55 99 179 –25 –31 7 17 8 179 –8 34 709 228 98 124 48 211 –190 122 –312 715 16 583 117 –621 –684 63 320 165 155 568 –87 –62 61 80 37 337 13 191 277 61 65 77 –20 94 –26 80 –107 352 1 204 148 –541 –531 –10 357 214 143 790 13 –184 114 37 71 176 7 557 104 21 106 6 –11 –18 197 303 –106 –103 3 –81 –24 –395 –354 –42 1 For reasons of confidentiality, the upper limit of earnings is not available in public use files. negative 2.6 percentage points in the second quartile to negative 1.3 percentage points in the highest quartile. There is a close association between production occupations and production workers in the manufacturing industry. In the industry employment discussion, similarly large employment declines in manufacturing will be noted. From 2000 to 2005, employment also declined among office and administrative support occupations (–949,000), mostly in jobs that paid less than the overall median wage. While shares of employment declined across all earnings quartiles for that occupation group, the decreases were substantially larger in the bottom two quartiles. (See tables 1 and 3.) Industry employment changes From an industry standpoint, wage and salary employment in education and health services increased by 3.0 million over the 2000–2005 period. Construction employment expanded by more than 1 million, and employment in retail trade and in food services and drinking places each rose by about threequarters of a million. Employment in financial activities 24 Monthly Labor Review December 2006 N OTE: Data may not sum to totals due to rounding. increased by about 600,000 during the 2000–05 period, and employment in public administration rose by a little more than half a million. A number of industries sustained employment decreases, some quite severe. Manufacturing employment declined by 3.3 million over the period, with slightly more than 2 million in the durable goods component. Employment in the information sector also declined, by about 660,000. (See table 2.) Within education and health services, employment in health services, except hospitals, rose by 1.2 million, with the gain distributed fairly equally across all earnings quartiles. Employment also expanded in hospitals, primarily in the higher paying earnings quartiles. In educational services, employment increased by nearly 1 million—also mainly in jobs that paid above the overall median weekly wage. The employment increase of more than 1 million in the construction industry was consistent with employment gains in the corresponding construction and extraction occupations. Most of the employment growth in the construction industry occurred in jobs that paid less than the overall median, and shares of construction employment in the lower Table 2. Employed wage and salary workers by industry and earnings quartile in 2000 and 2005 and change in employment from 2000 to 2005 [Numbers in thousands] Total employed, 2000 First quartile Second quartile (median) Upper limit of earnings ........................................ Total employed ............................................................ ... 122,089 $303 30,519 Agriculture and related industries ...................................... Mining .................................................................................. Construction ........................................................................ Manufacturing ..................................................................... Durable goods manufacturing ......................................... Nondurable goods manufacturing ................................... Wholesale and retail trade .................................................. Wholesale trade .............................................................. Retail trade ...................................................................... Transportation and utilities ................................................. Transportation and warehousing ..................................... Utilities ............................................................................. Information .......................................................................... Financial activities .............................................................. Finance and insurance .................................................... Real estate and rental and leasing ................................. Professional and business services .................................. Professional and technical services ............................. Management, administrative, and waste services ......... Education and health services ........................................... Educational services ....................................................... Health care and social assistance ................................. Hospitals ...................................................................... Health services, except hospitals .............................. Social assistance ........................................................ Leisure and hospitality ....................................................... Arts, entertainment, and recreation ................................ Accommodation and food services ................................ Accommodations ......................................................... Food services and drinking places ............................. Other services .................................................................... Other services, except private households ................... Repair and maintenance .............................................. Personal and laundry services ................................... Membership associations and organizations .............. Other services, private households ............................... Public administration ........................................................... 1,307 451 7,437 18,940 12,017 6,923 17,995 3,693 14,302 6,946 5,655 1,292 3,782 8,243 6,121 2,122 10,892 6,555 4,337 24,697 10,977 13,720 5,184 6,435 2,101 10,220 2,065 8,155 1,501 6,654 5,132 4,424 1,403 1,285 1,736 708 6,048 Industry Third quartile Highest quartile $498 30,525 $782 30,521 (1) 30,524 626 33 923 2,542 1,286 1,255 6,706 636 6,070 937 855 83 567 1,293 764 529 2,208 760 1,448 6,354 2,721 3,633 816 1,866 951 5,648 868 4,781 581 4,200 2,060 1,554 343 614 596 506 622 364 72 2,056 5,304 3,265 2,039 4,704 1,009 3,695 1,509 1,287 222 732 2,108 1,521 588 2,560 1,111 1,449 6,066 2,059 4,006 1,360 2,067 579 2,538 538 1,999 518 1,482 1,241 1,108 390 352 365 133 1,273 210 154 2,406 5,340 3,520 1,820 3,723 1,080 2,643 2,223 1,856 367 995 2,262 1,722 539 2,512 1,635 877 6,391 2,973 3,418 1,600 1,442 376 1,270 366 904 250 654 1,045 995 416 208 372 50 1,991 108 191 2,052 5,754 3,946 1,809 2,863 969 1,894 2,278 1,657 620 1,487 2,580 2,115 465 3,612 3,049 563 5,886 3,224 2,663 1,408 1,060 195 764 293 470 151 319 786 767 254 110 403 19 2,162 Total employed, 2005 First quartile Second quartile (median) Third quartile Highest quartile Upper limit of earnings ........................................ Total employed ............................................................ ... 125,889 $342 31,470 $577 31,473 $915 31,473 (1) 31,474 Agriculture and related industries ...................................... Mining .................................................................................. Construction ........................................................................ Manufacturing ..................................................................... Durable goods manufacturing ......................................... Nondurable goods manufacturing ................................... Wholesale and retail trade .................................................. Wholesale trade .............................................................. Retail trade ...................................................................... Transportation and utilities ................................................. Transportation and warehousing ..................................... Utilities ............................................................................. Information .......................................................................... Financial activities .............................................................. Finance and insurance .................................................... Real estate and rental and leasing ................................. Professional and business services .................................. Professional and technical services ............................. Management, administrative, and waste services ......... Education and health services ........................................... 1,076 603 8,513 15,596 9,900 5,696 19,101 4,028 15,073 6,730 5,552 1,178 3,118 8,845 6,445 2,399 11,337 6,682 4,656 27,661 461 29 1,267 2,068 1,069 999 6,771 535 6,235 908 843 64 522 1,244 674 570 2,326 754 1,572 6,744 331 112 2,645 4,335 2,675 1,660 5,059 1,070 3,989 1,603 1,395 209 613 2,147 1,532 614 2,512 1,039 1,473 6,692 190 186 2,605 4,369 2,842 1,527 4,011 1,191 2,821 2,187 1,821 366 793 2,468 1,865 603 2,632 1,672 960 7,325 94 276 1,996 4,824 3,314 1,510 3,260 1,232 2,028 2,032 1,493 539 1,190 2,986 2,373 612 3,868 3,217 651 6,900 Industry See footnote at end of table. Monthly Labor Review December 2006 25 Employment Changes by Earnings Table 2. Continued—Employed wage and salary workers by industry and earnings quartile in 2000 and 2005 and change in employment from 2000 to 2005 [Numbers in thousands] Total employed, 2005 Industry Educational services ............................................................. Health care and social assistance ....................................... Hospitals ............................................................................ Health services, except hospitals .................................... Social assistance .............................................................. Leisure and hospitality ............................................................. Arts, entertainment, and recreation ...................................... Accommodation and food services ...................................... Accommodations ............................................................... Food services and drinking places ................................... Other services .......................................................................... Other services, except private households ......................... Repair and maintenance .................................................... Personal and laundry services .......................................... Membership associations and organizations .................... Other services, private households ..................................... Public administration ................................................................. 11,958 15,702 5,742 7,680 2,280 11,102 2,253 8,849 1,471 7,378 5,628 4,832 1,502 1,401 1,929 797 6,578 2,814 3,929 803 2,158 969 6,337 943 5,393 612 4,781 2,183 1,643 345 673 626 540 612 Change in employment, 2000–2005 Industry First quartile First quartile Second quartile (median) Third quartile Highest quartile 2,237 4,455 1,411 2,418 626 2,570 565 2,005 452 1,553 1,490 1,296 495 398 402 194 1,365 3,408 3,917 1,746 1,725 446 1,398 448 950 261 689 1,169 1,121 424 231 465 48 2,138 3,499 3,401 1,782 1,380 239 797 296 501 146 355 787 772 238 98 435 15 2,464 Second quartile (median) Third quartile Highest quartile Total .................................................................................. 3,800 951 948 952 950 Agriculture and related industries ............................................ Mining ........................................................................................ Construction .............................................................................. Manufacturing ........................................................................... Durable goods manufacturing ............................................... Nondurable goods manufacturing ......................................... Wholesale and retail trade ........................................................ Wholesale trade .................................................................... Retail trade ............................................................................ Transportation and utilities ....................................................... Transportation and warehousing ........................................... Utilities ................................................................................... Information ................................................................................ Financial activities .................................................................... Finance and insurance .......................................................... Real estate and rental and leasing ....................................... Professional and business services ........................................ Professional and technical services ................................... Management, administrative, and waste services .............. Education and health services ................................................. Educational services ............................................................. Health care and social assistance ....................................... Hospitals ............................................................................ Health services, except hospitals .................................... Social assistance .............................................................. Leisure and hospitality ............................................................. Arts, entertainment, and recreation ...................................... Accommodation and food services ...................................... Accommodations ............................................................... Food services and drinking places ................................... Other services .......................................................................... Other services, except private households ......................... Repair and maintenance .................................................... Personal and laundry services ......................................... Membership associations and organizations .................... Other services, private households ..................................... Public administration ................................................................. –231 152 1,076 –3,344 –2,117 –1,227 1,106 335 771 –216 –103 –114 –664 602 324 277 445 127 319 2,964 981 1,982 558 1,245 179 882 188 694 –30 724 496 408 99 116 193 89 530 –165 –4 344 –474 –217 –256 65 –101 165 –29 –12 –19 –45 –49 –90 41 118 –6 124 390 93 296 –13 292 18 689 75 612 31 581 123 89 2 59 30 34 –10 –33 40 589 –969 –590 –379 355 61 294 94 108 –13 –119 39 11 26 –48 –72 24 626 178 449 51 351 47 32 27 6 –66 71 249 188 105 46 37 61 92 –20 32 199 –971 –678 –293 288 111 178 –36 –35 –1 –202 206 143 64 120 37 83 934 435 499 146 283 70 128 82 46 11 35 124 126 8 23 93 –2 147 –14 85 –56 –930 –632 –299 397 263 134 –246 –164 –81 –297 406 258 147 256 168 88 1,014 275 738 374 320 44 33 3 31 –5 36 1 5 –16 –12 32 –4 302 1 For reasons of confidentiality, the upper limit of earnings is not available in public use files. earnings quartiles increased. Whether on an occupational basis (construction and extraction occupations) or on an industry basis (construction), there was no employment 26 Monthly Labor Review December 2006 NOTE: Data may not sum to totals due to rounding. growth in the highest earnings quartile. (See tables 2 and 4.) From 2000 to 2005, employment in retail trade expanded by 771,000; this growth was spread across all earnings quartiles. Table 3. Percent distribution of employed wage and salary workers by occupation and earnings quartile in 2000 and 2005 and change in the distribution from 2000 to 2005 Employment distribution, 2000 First quartile Second quartile (median) Third quartile Highest quartile Upper limit of earnings ......................................................... Total employed ................................................................................. ... 122,089 $303 30,519 $498 30,525 $782 30,521 (1) 30,524 Percent ............................................................................................. 100.00 100.00 100.00 100.00 100.00 Management, business, and financial operations occupations ......... Management occupations ................................................................ Business and financial operations occupations .............................. Professional and related occupations ................................................. Computer and mathematical occupations ........................................ Architecture and engineering occupations ...................................... Life, physical, and social science occupations .............................. Community and social services occupations .................................. Legal occupations ............................................................................ Education, training, and library occupations ................................... Arts, design, entertainment, sports, and media occupations ......... Healthcare practitioner and technical occupations ......................... Service occupations ............................................................................ Healthcare support occupations ...................................................... Protective service occupations ....................................................... Food preparation and serving related occupations ......................... Building and grounds cleaning and maintenance occupations ....... Personal care and service occupations .......................................... Sales and office occupations .............................................................. Sales and related occupations ........................................................ Office and administrative support occupations ............................... Natural resources, construction, and maintenance occupations ....... Farming, fishing, and forestry occupations ..................................... Construction and extraction occupations ....................................... Installation, maintenance, and repair occupations ......................... Production, transportation, and material moving occupations ........... Production occupations ................................................................... Transportation and material moving occupations ............................ 12.38 8.60 3.78 20.00 2.62 2.35 .91 1.56 .93 5.70 1.54 4.38 15.36 1.92 2.09 5.38 3.56 2.40 27.03 10.76 16.27 9.52 .84 5.07 3.61 15.72 9.06 6.66 3.22 2.19 1.03 10.32 .42 .28 .33 .88 .26 4.89 1.25 2.00 31.76 3.30 1.65 14.20 6.97 5.63 33.76 16.80 16.96 5.68 1.89 2.49 1.31 15.27 7.75 7.52 6.24 3.91 2.33 12.40 .88 .85 .51 1.48 .50 3.68 1.09 3.40 17.43 3.17 2.05 5.25 4.72 2.24 32.65 8.90 23.74 10.15 .97 5.78 3.39 21.14 12.82 8.31 13.18 8.19 4.99 23.06 2.62 2.25 1.07 2.10 .94 6.60 1.68 5.80 8.05 .98 2.35 1.59 1.98 1.16 26.47 8.51 17.97 12.55 .35 6.76 5.43 16.68 9.98 6.70 26.86 20.10 6.77 34.23 6.55 6.04 1.73 1.79 2.03 7.63 2.15 6.32 4.18 .24 2.31 .48 .59 .56 15.24 8.84 6.40 9.70 .13 5.25 4.32 9.79 5.70 4.09 Employment distribution, 2005 First quartile Second quartile (median) Third quartile Highest quartile Upper limit of earnings ......................................................... Total employed ................................................................................. ... 125,889 $342 31,470 $577 31,473 $915 31,473 (1) 31,474 Percent ............................................................................................. 100.00 100.00 100.00 100.00 100.00 Management, business, and financial operations occupations ......... Management occupations ................................................................ Business and financial operations occupations .............................. Professional and related occupations ................................................. Computer and mathematical occupations ........................................ Architecture and engineering occupations ...................................... Life, physical, and social science occupations .............................. Community and social services occupations .................................. Legal occupations ............................................................................ Education, training, and library occupations ................................... Arts, design, entertainment, sports, and media occupations ......... Healthcare practitioner and technical occupations ......................... Service occupations ............................................................................ Healthcare support occupations ...................................................... Protective service occupations ....................................................... Food preparation and serving related occupations ......................... Building and grounds cleaning and maintenance occupations ....... Personal care and service occupations .......................................... Sales and office occupations .............................................................. Sales and related occupations ........................................................ Office and administrative support occupationsqq ........................... Natural resources, construction, and maintenance occupations ....... Farming, fishing, and forestry occupations ..................................... Construction and extraction occupations ....................................... Installation, maintenance, and repair occupations ......................... Production, transportation, and material moving occupations ........... Production occupations ................................................................... Transportation and material moving occupations ............................ 12.67 8.67 4.00 20.87 2.44 2.06 1.04 1.67 1.00 6.21 1.55 4.91 16.74 2.36 2.26 5.85 3.59 2.68 25.85 10.83 15.02 10.25 .71 5.80 3.74 13.62 7.15 6.46 3.16 2.09 1.07 11.00 .33 .26 .36 1.03 .27 5.25 1.40 2.08 34.73 4.20 1.67 15.64 7.26 5.96 31.33 16.24 15.10 6.53 1.38 3.69 1.47 13.24 5.96 7.28 6.54 3.97 2.58 12.59 .77 .73 .52 1.49 .51 4.14 1.03 3.41 19.16 3.80 2.30 5.48 4.73 2.85 31.06 9.02 22.04 12.11 1.00 7.46 3.66 18.53 10.26 8.26 13.80 8.47 5.34 24.17 2.26 1.98 1.23 2.29 1.03 7.47 1.68 6.23 8.69 1.14 2.49 1.79 1.85 1.42 25.59 8.51 17.08 13.28 .35 7.20 5.74 14.46 7.99 6.47 27.19 20.17 7.02 35.71 6.39 5.27 2.04 1.86 2.19 7.96 2.11 7.90 4.38 .29 2.58 .48 .54 .49 15.41 9.54 5.87 9.08 .14 4.83 4.11 8.24 4.40 3.84 Occupation Occupation See footnote at end of table. Monthly Labor Review December 2006 27 Employment Changes by Earnings Table 3. Continued—Percent distribution of employed wage and salary workers by occupation and earnings quartile in 2000 and 2005 and change in the distribution from 2000 to 2005 Occupation Change in distribution, 2000–2005 First quartile Second quartile (median) Third quartile Highest quartile .29 .07 .22 .87 –.18 –.29 .13 .11 .07 .51 .01 .53 1.38 .44 .17 .47 .03 .28 –1.18 .07 –1.25 .73 –.13 .73 .13 –2.10 –1.91 –.20 –.06 –.10 .04 .68 –.09 –.02 .03 .15 .01 .36 .15 .08 2.97 .90 .02 1.44 .29 .33 –2.43 –.56 –1.86 .85 –.51 1.20 .16 –2.03 –1.79 –.24 .30 .06 .25 .19 –.11 –.12 .01 .01 .01 .46 –.06 .01 1.73 .63 .25 .23 .01 .61 –1.59 .12 –1.70 1.96 .03 1.68 .27 –2.61 –2.56 –.05 .62 .28 .35 1.11 –.36 –.27 .16 .19 .09 .87 .00 .43 .64 .16 .14 .20 –.13 .26 –.88 .00 –.89 .73 .00 .44 .31 –2.22 –1.99 –.23 .33 .07 .25 1.48 –.16 –.77 .31 .07 .16 .33 –.04 1.58 .20 .05 .27 .00 –.05 –.07 .17 .70 –.53 –.62 .01 –.42 –.21 –1.55 –1.30 –.25 Management, business, and financial operations occupations ......... Management occupations ................................................................ Business and financial operations occupations .............................. Professional and related occupations ................................................. Computer and mathematical occupations ........................................ Architecture and engineering occupations ...................................... Life, physical, and social science occupations .............................. Community and social services occupations .................................. Legal occupations ............................................................................ Education, training, and library occupations ................................... Arts, design, entertainment, sports, and media occupations ......... Healthcare practitioner and technical occupations ......................... Service occupations ............................................................................ Healthcare support occupations ...................................................... Protective service occupations ....................................................... Food preparation and serving related occupations ......................... Building and grounds cleaning and maintenance occupations ....... Personal care and service occupations .......................................... Sales and office occupations .............................................................. Sales and related occupations ........................................................ Office and administrative support occupations ............................... Natural resources, construction, and maintenance occupations ....... Farming, fishing, and forestry occupations ..................................... Construction and extraction occupations ....................................... Installation, maintenance, and repair occupations ......................... Production, transportation, and material moving occupations ........... Production occupations ................................................................... Transportation and material moving occupations ............................ 1 For reasons of confidentiality, the upper limit of earnings is not available in public use files. Additionally, employment rose in both financial activities and in public administration, with most of the net job growth paying more than the median wage. In contrast, employment growth in food services and drinking places was concentrated in the bottom earnings quartile, mirroring the growth in food preparation and serving related occupations. Manufacturing employment has trended down for several decades, but the decline has been particularly sharp over the past 5 years. The decline of 3.3 million over that time period resulted in large employment declines of nearly 1 million each in the second, third, and highest earnings quartiles. Employment also declined by nearly a half million in the bottom earnings quartile. As employment in the information sector fell over the period, that industry’s share of employment declined in all quartiles, although disproportionately in jobs paying above the overall median. In fact, over the 5-year period, about threequarters of the total job loss in information occurred in the two highest earnings quartiles. (See tables 2 and 4.) Gender differences Despite being dramatically underrepresented in job categories that pay more than the overall median weekly wage, women 28 Monthly Labor Review December 2006 NOTE: Data may not sum to totals due to rounding. contributed nearly all of the net employment growth above the median over the 5-year period from 2000 to 2005.4 Women actually accounted for nearly 1.7 million of the 1.9 million net increase in total employment that occurred above the overall median wage. In contrast, nearly all the net employment growth below the median occurred among men. (See tables 5 and 6.) In the highest earnings quartile, women accounted for all of the net employment growth among management, business, and financial operations occupations and most of the net increase among professional and related occupations. On net, employment among men in the highest earnings quartile declined, primarily due to a large reduction in the number of production occupations. (See table 5.) In the third earnings quartile, women and men each contributed roughly a half million to employment growth. Most of the increase for women occurred in professional and related occupations, while most of the increase among men occurred in natural resources, construction, and maintenance occupations. Employment declined for both men and women in production occupations. Much of the employment increase below the median wage for men occurred in construction and extraction occupations and in low-wage food preparation and serving related occupations. Women accounted for large employment increases Table 4. Percent d istribution of employed wage and salary workers by industry and earnings quartile in 2000 and 2005 and change in the distribution from 2000 to 2005 Industry Employment distribution, 2000 Second quartile (median) First quartile Third quartile Highest quartile Upper limit of earnings ......................................... Total employed .............................................................. ... 122,089 $303 30,519 $498 30,525 $782 30,521 (1) 30,524 Percent ......................................................................... 100.00 100.00 100.00 100.00 100.00 Agriculture and related industries ....................................... Mining ................................................................................... Construction ......................................................................... Manufacturing ...................................................................... Durable goods manufacturing .......................................... Nondurable goods manufacturing .................................... Wholesale and retail trade ................................................... Wholesale trade ............................................................... Retail trade ....................................................................... Transportation and utilities .................................................. Transportation and warehousing ...................................... Utilities .............................................................................. Information ........................................................................... Financial activities ............................................................... Finance and insurance ..................................................... Real estate and rental and leasing .................................. Professional and business services ................................... Professional and technical services .............................. Management, administrative, and waste services .......... Education and health services ............................................ Educational services ........................................................ Health care and social assistance .................................. Hospitals ....................................................................... Health services, except hospitals ............................... Social assistance ......................................................... Leisure and hospitality ........................................................ Arts, entertainment, and recreation ................................. Accommodation and food services ................................. Accommodations .......................................................... Food services and drinking places .............................. Other services ..................................................................... Other services, except private households .................... Repair and maintenance ............................................... Personal and laundry services .................................... Membership associations and organizations ............... Other services, private households ................................ Public administration ............................................................ 1.07 .37 6.09 15.51 9.84 5.67 14.74 3.02 11.71 5.69 4.63 1.06 3.10 6.75 5.01 1.74 8.92 5.37 3.55 20.23 8.99 11.24 4.25 5.27 1.72 8.37 1.69 6.68 1.23 5.45 4.20 3.62 1.15 1.05 1.42 .58 4.95 2.05 .11 3.02 8.33 4.22 4.11 21.97 2.08 19.89 3.07 2.80 .27 1.86 4.24 2.50 1.73 7.23 2.49 4.74 20.82 8.92 11.90 2.67 6.12 3.12 18.51 2.84 15.67 1.90 13.76 6.75 5.09 1.12 2.01 1.95 1.66 2.04 1.19 .24 6.74 17.38 10.70 6.68 15.41 3.30 12.11 4.94 4.22 .73 2.40 6.91 4.98 1.93 8.39 3.64 4.75 19.87 6.75 13.12 4.46 6.77 1.90 8.31 1.76 6.55 1.70 4.85 4.06 3.63 1.28 1.15 1.20 .44 4.17 .69 .50 7.88 17.50 11.53 5.96 12.20 3.54 8.66 7.28 6.08 1.20 3.26 7.41 5.64 1.77 8.23 5.36 2.87 20.94 9.74 11.20 5.24 4.72 1.23 4.16 1.20 2.96 .82 2.14 3.43 3.26 1.36 .68 1.22 .16 6.52 .35 .63 6.72 18.85 12.93 5.92 9.38 3.17 6.21 7.46 5.43 2.03 4.87 8.45 6.93 1.52 11.83 9.99 1.84 19.28 10.56 8.72 4.61 3.47 .64 2.50 .96 1.54 .50 1.04 2.57 2.51 .83 .36 1.32 .06 7.08 Industry Employment distribution, 2005 First quartile Second quartile (median) Third quartile Highest quartile Upper limit of earnings ......................................... Total employed ............................................................. ... 125,889 $342 31,470 $577 31,473 $915 31,473 (1) 31,474 Percent ........................................................................ 100.00 100.00 100.00 100.00 100.00 Agriculture and related industries ....................................... Mining ................................................................................... Construction ......................................................................... Manufacturing ...................................................................... Durable goods manufacturing .......................................... Nondurable goods manufacturing .................................... Wholesale and retail trade ................................................... Wholesale trade ............................................................... Retail trade ....................................................................... Transportation and utilities .................................................. Transportation and warehousing ...................................... Utilities .............................................................................. Information ........................................................................... Financial activities ............................................................... Finance and insurance ..................................................... Real estate and rental and leasing .................................. .85 .48 6.76 12.39 7.86 4.52 15.17 3.20 11.97 5.35 4.41 .94 2.48 7.03 5.12 1.91 1.46 .09 4.02 6.57 3.40 3.17 21.51 1.70 19.81 2.88 2.68 .20 1.66 3.95 2.14 1.81 1.05 .36 8.40 13.77 8.50 5.27 16.07 3.40 12.67 5.09 4.43 .66 1.95 6.82 4.87 1.95 .60 .59 8.28 13.88 9.03 4.85 12.75 3.78 8.96 6.95 5.79 1.16 2.52 7.84 5.93 1.92 .30 .88 6.34 15.33 10.53 4.80 10.36 3.91 6.44 6.46 4.74 1.71 3.78 9.49 7.54 1.95 See footnote at end of table. Monthly Labor Review December 2006 29 Employment Changes by Earnings Table 4. Continued—Percent di stribution of employed wage and salary workers by industry and earnings quartile in 2000 and 2005 and change in the distribution from 2000 t0 2005 Employment distribution, 2005 Industry Professional and business services ................................... Professional and technical services .............................. Management, administrative, and waste services .......... Education and health services ............................................ Educational services ........................................................ Health care and social assistance .................................. Hospitals ....................................................................... Health services, except hospitals ............................... Social assistance ......................................................... Leisure and hospitality ........................................................ Arts, entertainment, and recreation ................................. Accommodation and food services ................................. Accommodations .......................................................... Food services and drinking places .............................. Other services ..................................................................... Other services, except private households .................... Repair and maintenance ............................................... Personal and laundry services .................................... Membership associations and organizations ............... Other services, private households ................................ Public administration ............................................................ 9.01 5.31 3.70 21.97 9.50 12.47 4.56 6.10 1.81 8.82 1.79 7.03 1.17 5.86 4.47 3.84 1.19 1.11 1.53 .63 5.23 Industry Change in distribution, 2000–2005 Agriculture and related industries ....................................... Mining ................................................................................... Construction ......................................................................... Manufacturing ...................................................................... Durable goods manufacturing .......................................... Nondurable goods manufacturing .................................... Wholesale and retail trade ................................................... Wholesale trade ............................................................... Retail trade ....................................................................... Transportation and utilities .................................................. Transportation and warehousing ...................................... Utilities .............................................................................. Information ........................................................................... Financial activities ............................................................... Finance and insurance ..................................................... Real estate and rental and leasing .................................. Professional and business services ................................... Professional and technical services ............................... Management, administrative, and waste services .......... Education and health services ............................................ Educational services ........................................................ Health care and social assistance .................................. Hospitals ....................................................................... Health services, except hospitals ............................... Social assistance ......................................................... Leisure and hospitality ........................................................ Arts, entertainment, and recreation ................................. Accommodation and food services ................................. Accommodations .......................................................... Food services and drinking places .............................. Other services ..................................................................... Other services, except private households .................... Repair and maintenance ............................................... Personal and laundry services .................................... Membership associations and organizations ............... Other services, private households ................................ Public administration ............................................................ –.22 .11 .67 –3.12 –1.98 –1.15 .43 .18 .26 –.34 –.22 –.12 –.62 .28 .11 .17 .09 –.06 .15 1.74 .51 1.23 .31 .83 .09 .45 .10 .35 –.06 .41 .27 .22 .04 .06 .11 .05 .28 1 For reasons of confidentiality, the upper limit of earnings is not available in public use files. 30 Monthly Labor Review December 2006 First quartile Second quartile (median) Third quartile 7.39 2.40 4.99 21.43 8.94 12.49 2.55 6.86 3.08 20.14 3.00 17.14 1.95 15.19 6.94 5.22 1.10 2.14 1.99 1.72 1.95 7.98 3.30 4.68 21.26 7.11 14.15 4.48 7.68 1.99 8.17 1.80 6.37 1.44 4.93 4.73 4.12 1.57 1.27 1.28 .62 4.34 8.36 5.31 3.05 23.27 10.83 12.45 5.55 5.48 1.42 4.44 1.42 3.02 .83 2.19 3.71 3.56 1.35 .74 1.48 .15 6.79 First quartile Second quartile (median) Third quartile –.59 –.02 1.00 –1.76 –.82 –.94 –.46 –.38 –.08 –.19 –.12 –.07 –.20 –.29 –.36 .08 .16 –.09 .25 .61 .02 .59 –.12 .74 –.04 1.63 .16 1.47 .05 1.43 .19 .13 –.02 .13 .04 .06 –.09 –.14 .12 1.66 –3.61 –2.20 –1.41 .66 .10 .56 .15 .21 –.07 –.45 –.09 –.11 .02 –.41 –.34 –.07 1.39 .36 1.03 .02 .91 .09 –.14 .04 –.18 –.26 .08 .67 .49 .29 .12 .08 .18 .17 –.09 .09 .40 –3.62 –2.50 –1.11 .55 .24 .30 –.33 –.29 –.04 –.74 .43 .29 .15 .13 –.05 .18 2.33 1.09 1.25 .31 .76 .19 .28 .22 .06 .01 .05 .28 .30 –.01 .06 .26 –.01 .27 NOTE: Data may not sum to totals due to rounding. Highest quartile 12.29 10.22 2.07 21.92 11.12 10.81 5.66 4.39 .76 2.53 .94 1.59 .46 1.13 2.50 2.45 .76 .31 1.38 .05 7.83 Highest quartile –.05 .25 –.38 –3.52 –2.40 –1.12 .98 .74 .23 –1.00 –.69 –.32 –1.09 1.04 .61 .43 .46 .23 .23 2.64 .56 2.09 1.05 .92 .12 .03 –.02 .05 –.04 .09 –.07 –.06 –.07 –.05 .06 –.01 .75 Table 5. Change in wage and salary employment by occupation, sex, and earnings quartile, 2000 to 2005 [Numbers in thousands] Occupation Change in employment First quartile Second quartile (median) Third quartile Highest quartile Men, total change ................................................................... 1,806 682 903 419 –201 Management, business, and financial operations occupations ....... Management occupations .............................................................. Business and financial operations occupations ............................ Professional and related occupations ............................................... Computer and mathematical occupations ...................................... Architecture and engineering occupations .................................... Life, physical, and social science occupations ............................ Community and social services occupations ................................ Legal occupations .......................................................................... Education, training, and library occupations ................................. Arts, design, entertainment, sports, and media occupations ....... Healthcare practitioner and technical occupations ....................... Service occupations .......................................................................... Healthcare support occupations .................................................... Protective service occupations ..................................................... Food preparation and serving related occupations ....................... Building and grounds cleaning and maintenance occupations ..... Personal care and service occupations ........................................ Sales and office occupations ............................................................ Sales and related occupations ...................................................... Office and administrative support occupations ............................. Natural resources, construction, and maintenance occupations ..... Farming, fishing, and forestry occupations ................................... Construction and extraction occupations ..................................... Installation, maintenance, and repair occupations ....................... Production, transportation, and material moving occupations ......... Production occupations ................................................................. Transportation and material moving occupations .......................... 177 89 87 431 –7 –250 75 61 14 281 27 231 728 96 148 366 14 103 249 335 –86 1,252 –113 1,068 296 –1,031 –1,057 26 –16 –19 3 82 –20 0 –9 16 –1 71 17 8 408 51 –22 300 45 35 48 20 28 307 –129 379 57 –147 –128 –19 43 12 31 110 –13 –27 2 22 9 78 5 35 174 45 42 32 –10 65 72 74 –2 707 17 568 122 –203 –294 91 189 140 51 93 –25 –44 26 22 –6 76 8 35 84 2 43 29 –7 16 17 44 –27 364 –4 204 164 –328 –324 –5 –38 –43 4 145 53 –179 55 2 11 55 –2 152 62 0 85 3 –13 –13 111 196 –86 –128 3 –82 –47 –353 –312 –42 Women, total change .............................................................. 1,995 269 43 531 1,152 Management, business, and financial operations occupations ....... Management occupations ............................................................ Business and financial operations occupations ......................... Professional and related occupations ............................................... Computer and mathematical occupations ................................... Architecture and engineering occupations .................................. Life, physical, and social science occupations ......................... Community and social services occupations .............................. Legal occupations ........................................................................ Education, training, and library occupations .............................. Arts, design, entertainment, sports, and media occupations .... Healthcare practitioner and technical occupations .................... Service occupations .......................................................................... Healthcare support occupations ................................................. Protective service occupations .................................................. Food preparation and serving related occupations .................... Building and grounds cleaning and maintenance occupations ... Personal care and service occupations ..................................... Sales and office occupations ............................................................ Sales and related occupations .................................................... Office and administrative support occupations .......................... Natural resources, construction, and maintenance occupations ..... Farming, fishing, and forestry occupations ................................ Construction and extraction occupations ................................... Installation, maintenance, and repair occupations ..................... Production, transportation, and material moving occupations ......... Production occupations ............................................................... Transportation and material moving occupations ........................ 668 335 333 1,419 –120 –30 119 130 107 571 46 596 1,599 528 143 428 160 340 –707 156 –863 34 –10 38 6 –1,018 –999 –19 30 9 21 231 –6 –4 22 42 7 88 43 38 828 265 44 287 113 121 –489 –36 –453 14 –15 22 7 –345 –361 15 112 44 68 69 –12 –4 5 –6 –2 101 –13 –2 535 184 56 92 59 146 –262 48 –310 7 –1 15 –6 –418 –390 –28 131 26 105 475 –62 –19 34 58 42 261 6 155 193 59 22 48 –13 77 –43 36 –79 –12 5 0 –18 –213 –207 –6 395 256 138 645 –40 –4 59 35 60 121 9 404 42 20 21 3 3 –5 87 107 –20 25 1 0 23 –42 –42 0 N OTE: Data may not sum to totals due to rounding. in service-related occupations that paid below the overall median wage as well; they also experienced substantial employment declines in sales occupations and in production occupations. Overall, job declines in production occupations Monthly Labor Review December 2006 31 Employment Changes by Earnings Table 6. Change in wage and salary employment by industry, sex, and earnings quartile, 2000 to 2005 (Numbers in thousands) Change in employment Industry First quartile Second quartile (median) Third quartile Highest quartile Men, total change ...................................................... 1,804 683 903 422 –201 Agriculture and related industries .................................... Mining ................................................................................ Construction ...................................................................... Manufacturing ................................................................... Durable goods manufacturing ....................................... Nondurable goods manufacturing ................................. Wholesale and retail trade ................................................ Wholesale trade ............................................................ Retail trade .................................................................... Transportation and utilities ............................................... Transportation and warehousing ................................... Utilities ........................................................................... Information ........................................................................ Financial activities ............................................................ Finance and insurance .................................................. Real estate and rental and leasing ............................... Professional and business services ................................ Professional and technical services ........................... Management, administrative, and waste services ....... Education and health services ......................................... Educational services ..................................................... Health care and social assistance ............................... Hospitals .................................................................... Health services, except hospitals ............................ Social assistance ...................................................... Leisure and hospitality ..................................................... Arts, entertainment, and recreation .............................. Accommodation and food services .............................. Accommodations ....................................................... Food services and drinking places ........................... Other services .................................................................. Other services, except private households ................. Repair and maintenance ............................................ Personal and laundry services ................................. Membership associations and organizations ............ Other services, private households ............................. Public administration ......................................................... –186 136 977 –1,919 –1,224 –695 804 356 448 –147 –56 –92 –384 397 254 143 377 78 300 815 386 429 144 231 54 487 93 394 –9 402 201 199 111 –12 99 2 246 –148 3 308 –135 –36 –99 93 –48 141 17 21 –4 –20 19 –4 23 57 –13 70 88 41 47 –19 30 35 392 51 341 3 338 31 46 22 –8 31 –14 –22 –14 31 564 –373 –231 –141 184 59 125 78 89 –10 –59 61 43 18 74 –28 101 203 96 106 48 51 8 14 23 –10 –18 8 106 93 88 –1 6 13 35 –10 32 177 –595 –391 –205 253 121 132 –17 –20 2 –81 102 70 32 91 12 79 264 165 98 27 64 6 50 17 33 14 21 70 69 13 –7 62 1 87 –13 72 –72 –816 –566 –250 274 225 50 –224 –146 –79 –224 216 146 69 155 107 48 261 83 178 88 86 5 31 2 28 –8 37 –7 –8 –12 4 1 0 145 Women, total change ................................................. 1,996 271 45 532 1,150 Agriculture and related industries .................................... Mining ................................................................................ Construction ...................................................................... Manufacturing ................................................................... Durable goods manufacturing ....................................... Nondurable goods manufacturing ................................. Wholesale and retail trade ................................................ Wholesale trade ............................................................ Retail trade .................................................................... Transportation and utilities ............................................... Transportation and warehousing ................................... Utilities ........................................................................... Information ........................................................................ Financial activities ............................................................ Finance and insurance .................................................. Real estate and rental and leasing ............................... Professional and business services ................................ Professional and technical services ........................... Management, administrative, and waste services ....... Education and health services ......................................... Educational services ..................................................... Health care and social assistance ............................... Hospitals .................................................................... –46 17 99 –1,425 -893 –532 301 –22 323 –69 –47 –22 –279 205 70 135 68 48 20 2,149 595 1,554 414 –18 –7 36 –339 –181 –158 –27 –52 25 –46 –32 –13 –25 –68 –85 17 61 7 54 301 52 250 6 –19 10 25 –597 –359 –238 171 3 168 17 20 –3 –60 –22 –30 8 –122 –45 –77 424 81 342 4 –8 0 22 –375 –287 –88 36 –10 46 –18 –15 –3 –122 105 73 32 29 25 3 672 270 401 118 –1 13 16 –115 –65 –49 123 38 84 –21 –20 –2 –73 190 112 78 101 61 40 753 192 560 285 See footnote at end of table. 32 Monthly Labor Review December 2006 Table 6. Continued—Change in wage and salary employment by industry, sex, and earnings quartile, 2000 to 2005 (Numbers in thousands) Change in employment Industry Health services, except hospitals ............................ Social assistance ...................................................... Leisure and hospitality ..................................................... Arts, entertainment, and recreation .............................. Accommodation and food services .............................. Accommodations ....................................................... Food services and drinking places ........................... Other services .................................................................. Other services, except private households ................. Repair and maintenance ............................................ Personal and laundry services ................................. Membership associations and organizations ............ Other services, private households ............................. Public administration ......................................................... 1,015 126 396 95 301 –20 320 296 208 –11 128 92 87 284 First quartile 261 –17 297 26 271 28 243 93 45 –20 65 –2 48 12 Second quartile (median) Third quartile 300 38 20 4 15 –48 63 143 96 16 48 32 47 56 218 65 78 65 12 –3 14 53 57 –4 30 30 –3 61 Highest quartile 235 40 2 1 2 3 0 8 12 –4 –16 31 –4 156 NOTE: Data may not sum to totals due to rounding. across all earnings quartiles were nearly equally split among men and women (1.1 million and 1.0 million, respectively), although a larger share of men’s employment losses occurred at the higher end of the pay scale. (See table 5.) By industry, employment in jobs that paid more than the overall median wage increased substantially among women in health care, educational services, and financial activities. In contrast, employment declined among women in manufacturing jobs across all earnings quartiles. Among men, employment growth occurred above the median in wholesale trade, financial activities, and, to a lesser extent, in educational services and in health care and social assistance. However, men incurred large employment declines in both manufacturing and information industry jobs with wages that were greater than the overall median wage. At the lower end of the pay scale (less than the median), men’s employment increased in both construction and in leisure and hospitality. (See table 6.) IN SUM , THIS ANALYSIS PROVIDES another means by which to assess the quality of job growth. Employment by occupations and industries for 2000 and 2005 was stratified by earnings quartiles. Some of the more interesting findings indicated that women disproportionately benefited from strong employment growth in higher paying professional occupations and in higher paying jobs within health care, educational services, and financial activities. Employment declines in production occupations and in the manufacturing and information sectors were a drag on the labor market and were particularly acute among men in job categories that paid more than the median wage. Additionally, employment growth among men in construction and extraction occupations, as well as in the construction industry, proved to yield mostly lower paying job opportunities. Lastly, much of the employment increase in service occupations occurred at the lower end of the pay scale. Overall, examination of employment changes in occupations and industries by earnings quartiles offers alternative and informative insights into distinguishing higher paying “good” jobs from lower paying “bad” jobs. Notes 1 The CPS is a nationwide sample survey of approximately 60,000 households conducted for the Bureau of Labor Statistics by the U.S. Census Bureau. Employment and earnings data analyzed in this article are based on data collected from the outgoing rotation groups in the CPS sample. Each month, the CPS is administered to the sample households, divided into eight representative subsamples or rotation groups. A given rotation group is interviewed for a total of 8 months, divided into two equal periods. It is in the sample for 4 consecutive months, leaves the sample during the following 8 months, and then returns for another 4 consecutive months. In each monthly sample, one of the eight rotation groups is in the first month of enumeration; another rotation group is the second month, and so on. Earnings data are collected from individuals whose households are in the 4th or 8th month of enumeration, often referred to as the Outgoing Rotation Groups or ORG files. Self-employed workers are excluded, regardless of whether their businesses are incorporated. For more information on the CPS , see Explanatory Notes and Estimates of Error in the BLS monthly publication Employment and Earnings. 2 Data represent earnings before taxes and other deductions and include any overtime pay, commissions, or tips usually received (at the main job in the case of multiple jobholders). Since January 1994, respondents have been asked to identify the easiest way for them to report earnings (hourly, weekly, biweekly, twice monthly, monthly, annually, other) and how much they usually earn in the reported time period. Earnings reported on a basis other than weekly are converted to a weekly equivalent. The term “usual” is as perceived by the respondent. If the respondent asks for a definition of usual, inter- Monthly Labor Review December 2006 33 Employment Changes by Earnings viewers are instructed to define the term as more than half the weeks worked during the past 4 or 5 months. 3 The occupational and industry classifications presented in this analysis are based on the 2002 Census Bureau classification systems and are derived from, respectively, the 2000 Standard Occupational Classification ( SOC ) system and the 2002 North American Industry Classification System (NAICS). The occupational classification assigns codes to individuals according to their usual activities or duties on their job. The industry classification assigns codes to individuals according to the type of business or industry in which they are employed. 4 For more information on the distribution of employment by gender and earnings quartile, see “Women Still Underrepresented Among Highest Earners,” Issues in Labor Statistics, Summary 06–03 (Bureau of Labor Statistics, March 2006). Do you know TED? “What’s TED?” We’re glad you asked. TED is The Editor’s Desk, part of the BLS Web site. TED is a daily source of fascinating facts and interesting information from BLS. Each business day, The Editor’s Desk: • Brings you fresh information from all over BLS • Highlights intriguing BLS data that you might otherwise miss • Focuses on one or two specific points, rather than presenting a general summary • Provides links to further analysis • Gives you a way to send us your feedback We think that if you give The Editor’s Desk a few minutes a day, within a week you’ll sound pretty clever about economics, within a month you will be extremely well-informed about the economy, and within a year you will be broadly educated in economic statistics and labor economics. If you’d like to know TED, visit The Editor’s Desk webpage: http://www.bls.gov/opub/ted/ or click on The Editor’s Desk link, under “Publications” on the BLS homepage: http://www.bls.gov/ 34 Monthly Labor Review December 2006
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