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 Technical information: (202) 606-6555     USDL 99-12
 Media contact:               606-5902
 
                                           WIRE EMBARGO UNTIL
                                           10:00 A.M. (EST) THURSDAY
                                           JANUARY 14, 1999
 
 
 
                      REAL EARNINGS IN DECEMBER 1998
 
     Real average weekly earnings increased by 0.5 percent from November to December after 
seasonal adjustment, according to preliminary data released today by the Bureau of Labor 
Statistics of the U.S. Department of Labor.  This gain was due to a 0.4 percent increase in 
average hourly earnings and a 0.3 percent rise in average weekly hours.  The earnings 
increase was slightly offset by a 0.2 percent increase in the Consumer Price Index for Urban 
Wage Earners and Clerical Workers (CPI-W).

     Data on average weekly earnings are collected from the payroll reports of private 
nonfarm establishments.  Earnings of both full-time and part-time workers holding production 
or nonsupervisory jobs are included.  Real average weekly earnings are calculated by 
adjusting earnings in current dollars for changes in the CPI-W.

     Average weekly earnings rose by 3.4 percent between December of 1997 and 1998 as a 
result of a 3.7 percent increase in average hourly earnings which was partially offset by a 
0.3 percent decline in average weekly hours.  After adjustment for a 1.6 percent increase in 
the CPI-W over the same period, real average weekly earnings grew by 1.8 percent.  Before 
adjustment for seasonal change and deflation by the CPI-W, average weekly earnings were 
$450.75 in December 1998, compared with $436.04 a year earlier.
 
                     _____________________________
 
*******************************************************************************
*Beginning with the February release of January data, table A of this release *
*will present seasonally adjusted estimates of over-the-year change in place  *
*of the not seasonally adjusted estimates.  Special techniques are applied to *
*the hours and earnings data in the seasonal adjustment process to mitigate   *
*the effect of certain calendar-related fluctuations.  Therefore,             *
*over-the-year changes of hours and earnings are best measured using the      *
*seasonally adjusted series.  A discussion of these calendar-related          *
*fluctuations and the special techniques to remove them is available in the   *
*June 1998 issue of Employment and Earnings or on the Internet                *
*(http://stats.bls.gov/ceshome.htm).                                          *
*******************************************************************************
 
      Real Earnings for January 1999 will be released on Friday, February 19, 1999.  


		
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 






 Table A. Composition of change in real earnings of production or
 nonsupervisory workers on private nonfarm payrolls
 ________________________________________________________________________
             |           |           |           |           |           
             |  Average  |  Average  |  Average  |    The    |    Real   
             |   hourly  |   weekly  |   weekly  |  Consumer |  average  
    Year     |  earnings |   hours   |  earnings |   Price   |   weekly  
     and     |           |           |           |  Index1/  |  earnings 
    month    |___________|___________|___________|___________|___________
             |                                                           
             |  Percent change from preceding month, seasonally adjusted 
 ____________|___________________________________________________________
             |           |           |           |           |           
 1997:       |           |           |           |           |           
     Dec.    |     0.2   |     0.0   |     0.2   |     0.1   |     0.2   
 1998:       |           |           |           |           |           
     Jan.    |      .3   |      .3   |      .6   |      .0   |      .6   
     Feb.    |      .4   |     -.3   |      .1   |      .0   |      .1   
     Mar.    |      .3   |     -.3   |    (2)    |     -.1   |      .1   
     Apr.    |      .6   |     -.3   |      .3   |      .3   |    (2)    
     May     |      .2   |      .6   |      .8   |      .3   |      .5   
     June    |      .2   |     -.3   |     -.1   |      .1   |     -.1   
     July    |      .2   |      .0   |      .2   |      .2   |      .1   
     Aug.    |      .5   |      .0   |      .5   |      .1   |      .4   
     Sept.   |      .2   |     -.6   |     -.4   |      .1   |     -.5   
     Oct.    |      .2   |      .6   |      .8   |      .3   |      .5   
     Nov.p   |      .2   |     -.3   |     -.1   |      .1   |     -.2   
     Dec.p   |      .4   |      .3   |      .7   |      .2   |      .5   
             |___________________________________________________________
             |                                                           
             | Percent change from same month a year ago, not seasonally 
             |                          adjusted                         
             |___________________________________________________________
             |           |           |           |           |           
 1997:       |           |           |           |           |           
     Dec.    |     3.8   |    -0.3   |     3.5   |     1.5   |     2.0   
 1998:       |           |           |           |           |           
     Jan.    |     4.0   |      .9   |     4.9   |     1.3   |     3.5   
     Feb.    |     4.1   |      .3   |     4.4   |     1.1   |     3.3   
     Mar.    |     4.1   |     -.3   |     3.8   |     1.1   |     2.7   
     Apr.    |     4.2   |     -.6   |     3.6   |     1.2   |     2.3   
     May     |     4.3   |      .3   |     4.6   |     1.5   |     3.0   
     June    |     3.9   |     -.6   |     3.3   |     1.5   |     1.8   
     July    |     4.0   |      .0   |     4.0   |     1.5   |     2.5   
     Aug.    |     4.3   |      .3   |     4.6   |     1.4   |     3.1   
     Sept.   |     4.0   |    -1.4   |     2.5   |     1.2   |     1.3   
     Oct.    |     3.8   |     -.3   |     3.5   |     1.3   |     2.2   
     Nov.p   |     3.7   |     -.3   |     3.4   |     1.4   |     2.0   
     Dec.p   |     3.7   |     -.3   |     3.4   |     1.6   |     1.8   
 ____________|___________|___________|___________|___________|___________

  1/ The deflator for the constant-dollar series presented in this
 release is the Consumer Price Index for Urban Wage Earners and Clerical
 Workers (CPI-W).
   2  Less than 0.05 percent.
   p = preliminary.






   Table 1. Earnings of production or nonsupervisory workers on private
   nonfarm payrolls in current and constant dollars1/ by industry, not
   seasonally adjusted
   ____________________________________________________________________
                             |                                         
                             |         Average hourly earnings         
                             |_________________________________________
                             |        |        |        |              
            Industry         |        |        |        |    Percent   
                             |   Dec. |   Nov. |   Dec. |    change    
                             |   1997 |   1998p|   1998p|  Dec. 1997 - 
                             |        |        |        |  Dec. 1998   
   __________________________|________|________|________|______________
                             |        |        |        |              
   Total private:2/          |        |        |        |              
    Current dollars..........| $12.53 | $12.99 | $12.99 |      3.7     
    Constant (1982) dollars..|   7.67 |   7.83 |   7.83 |      2.1     
                             |        |        |        |              
   Goods-producing:          |        |        |        |              
    Current dollars..........|  14.21 |  14.49 |  14.55 |      2.4     
    Constant (1982) dollars..|   8.70 |   8.74 |   8.78 |       .9     
                             |        |        |        |              
   Mining:                   |        |        |        |              
    Current dollars..........|  16.52 |  17.32 |  17.41 |      5.4     
    Constant (1982) dollars..|  10.12 |  10.45 |  10.50 |      3.8     
                             |        |        |        |              
   Construction:             |        |        |        |              
    Current dollars..........|  16.37 |  16.80 |  16.83 |      2.8     
    Constant (1982) dollars..|  10.02 |  10.13 |  10.15 |      1.3     
                             |        |        |        |              
   Manufacturing:            |        |        |        |              
    Current dollars..........|  13.47 |  13.60 |  13.69 |      1.6     
    Constant (1982) dollars..|   8.25 |   8.20 |   8.26 |       .1     
                             |        |        |        |              
   Service-producing:        |        |        |        |              
    Current dollars..........|  11.96 |  12.50 |  12.49 |      4.4     
    Constant (1982) dollars..|   7.32 |   7.54 |   7.53 |      2.9     
                             |        |        |        |              
   Transportation and public |        |        |        |              
        utilities:           |        |        |        |              
    Current dollars..........|  15.17 |  15.53 |  15.57 |      2.6     
    Constant (1982) dollars..|   9.29 |   9.37 |   9.39 |      1.1     
                             |        |        |        |              
   Wholesale trade:          |        |        |        |              
    Current dollars..........|  13.72 |  14.29 |  14.27 |      4.0     
    Constant (1982) dollars..|   8.40 |   8.62 |   8.61 |      2.5     
                             |        |        |        |              
   Retail trade:             |        |        |        |              
    Current dollars..........|   8.51 |   8.87 |   8.89 |      4.5     
    Constant (1982) dollars..|   5.21 |   5.35 |   5.36 |      2.9     
                             |        |        |        |              
   Finance, insurance,       |        |        |        |              
        and real estate:     |        |        |        |              
    Current dollars..........|  13.64 |  14.41 |  14.33 |      5.1     
    Constant (1982) dollars..|   8.35 |   8.69 |   8.64 |      3.5     
                             |        |        |        |              
   Services:                 |        |        |        |              
    Current dollars..........|  12.61 |  13.14 |  13.18 |      4.5     
    Constant (1982) dollars..|   7.72 |   7.93 |   7.95 |      3.0     
   __________________________|________|________|________|______________

   See footnotes at end of table.






   Table 1. Earnings of production or nonsupervisory workers on private
   nonfarm payrolls in current and constant dollars1/ by industry, not
   seasonally adjusted - Continued
   ____________________________________________________________________
                             |                                         
                             |         Average weekly earnings         
                             |_________________________________________
                             |        |        |        |              
            Industry         |        |        |        |    Percent   
                             |   Dec. |   Nov. |   Dec. |    change    
                             |   1997 |   1998p|   1998p|  Dec. 1997 - 
                             |        |        |        |  Dec. 1998   
   __________________________|________|________|________|______________
                             |        |        |        |              
   Total private:2/          |        |        |        |              
    Current dollars..........|$436.04 |$450.75 |$450.75 |      3.4     
    Constant (1982) dollars..| 267.02 | 271.86 | 271.86 |      1.8     
                             |        |        |        |              
   Goods-producing:          |        |        |        |              
    Current dollars..........| 596.82 | 596.99 | 608.19 |      1.9     
    Constant (1982) dollars..| 365.47 | 360.07 | 366.82 |       .4     
                             |        |        |        |              
   Mining:                   |        |        |        |              
    Current dollars..........| 746.70 | 760.35 | 757.34 |      1.4     
    Constant (1982) dollars..| 457.26 | 458.59 | 456.78 |      -.1     
                             |        |        |        |              
   Construction:             |        |        |        |              
    Current dollars..........| 630.25 | 646.80 | 659.74 |      4.7     
    Constant (1982) dollars..| 385.95 | 390.11 | 397.91 |      3.1     
                             |        |        |        |              
   Manufacturing:            |        |        |        |              
    Current dollars..........| 579.21 | 572.56 | 583.19 |       .7     
    Constant (1982) dollars..| 354.69 | 345.33 | 351.74 |      -.8     
                             |        |        |        |              
   Service-producing:        |        |        |        |              
    Current dollars..........| 393.48 | 412.50 | 410.92 |      4.4     
    Constant (1982) dollars..| 240.96 | 248.79 | 247.84 |      2.9     
                             |        |        |        |              
   Transportation and public |        |        |        |              
        utilities:           |        |        |        |              
    Current dollars..........| 603.77 | 616.54 | 607.23 |       .6     
    Constant (1982) dollars..| 369.73 | 371.86 | 366.24 |      -.9     
                             |        |        |        |              
   Wholesale trade:          |        |        |        |              
    Current dollars..........| 526.85 | 553.02 | 549.40 |      4.3     
    Constant (1982) dollars..| 322.63 | 333.55 | 331.36 |      2.7     
                             |        |        |        |              
   Retail trade:             |        |        |        |              
    Current dollars..........| 248.49 | 256.34 | 259.59 |      4.5     
    Constant (1982) dollars..| 152.17 | 154.61 | 156.57 |      2.9     
                             |        |        |        |              
   Finance, insurance,       |        |        |        |              
        and real estate:     |        |        |        |              
    Current dollars..........| 489.68 | 533.17 | 517.31 |      5.6     
    Constant (1982) dollars..| 299.87 | 321.57 | 312.01 |      4.0     
                             |        |        |        |              
   Services:                 |        |        |        |              
    Current dollars..........| 411.09 | 430.99 | 430.99 |      4.8     
    Constant (1982) dollars..| 251.74 | 259.95 | 259.95 |      3.3     
   __________________________|________|________|________|______________

    1/ The deflator for the constant-dollar series presented in this
   release is the Consumer Price Index for Urban Wage Earners and
   Clerical Workers (CPI-W).
    2/ Data relate to production and related workers in mining and
   manufacturing; construction workers in construction; and
   nonsupervisory workers in transportation and public utilities,
   trade, finance, insurance, and real estate, and services. Included
   in this group are approximately four-fifths of all jobs on private
   industry payrolls.
     p = preliminary.




 Table 2. Earnings of production or nonsupervisory workers on private
 nonfarm payrolls1/, seasonally adjusted
 _________________________________________________________________________
              |                             |                             
              |                             |                             
              |        Average hourly       |        Average weekly       
              |           earnings          |           earnings          
              |                             |                             
     Year     |_____________________________|_____________________________
      and     |              |              |              |              
     month    |              |              |              |              
              |    Current   |   Constant   |    Current   |   Constant   
              |    dollars   |    (1982)    |    dollars   |    (1982)    
              |              |   dollars2/  |              |   dollars2/  
              |              |              |              |              
 _____________|______________|______________|______________|______________
              |              |              |              |              
 1997:        |              |              |              |              
     Dec.     |    $12.50    |     $7.63    |   $433.75    |   $264.80    
 1998:        |              |              |              |              
     Jan.     |     12.54    |      7.66    |    436.39    |    266.42    
     Feb.     |     12.59    |      7.69    |    436.87    |    266.71    
     Mar.     |     12.63    |      7.72    |    437.00    |    266.95    
     Apr.     |     12.70    |      7.74    |    438.15    |    267.00    
     May      |     12.73    |      7.73    |    441.73    |    268.37    
     June     |     12.76    |      7.75    |    441.50    |    268.06    
     July     |     12.79    |      7.75    |    442.53    |    268.20    
     Aug.     |     12.85    |      7.78    |    444.61    |    269.30    
     Sept.    |     12.87    |      7.79    |    442.73    |    268.00    
     Oct.     |     12.90    |      7.79    |    446.34    |    269.37    
     Nov. p   |     12.93    |      7.79    |    446.09    |    268.89    
     Dec. p   |     12.98    |      7.81    |    449.11    |    270.22    
 _____________|______________|______________|______________|______________

  1/ See footnote 2, table 1.
  2/ The deflator for the constant-dollar series presented in this release
 is the Consumer Price Index for Urban Wage Earners and Clerical Workers
 (CPI-W).
   p = preliminary.


Explanatory Note



	The earnings series presented in this release are derived from the 
Bureau of Labor Statistics monthly establishment survey of employment, 
payroll, and hours.  The deflator used for constant-dollar earnings 
series presented in this release is derived from the Consumer Price 
Index for Urban Wage Earners and Clerical Workers (CPI-W).
	Earnings series from the monthly establishment series are estimated 
arithmetic averages (means) of the hourly and weekly earnings of all 
production or nonsupervisory jobs in the private nonfarm sector of the 
economy.  Average hourly earnings estimates are derived by dividing the 
estimated industry payroll--for all production or nonsupervisory jobs--
by the corresponding paid hours.  Average weekly hours estimates are 
similarly derived by dividing estimated aggregate hours by the 
corresponding number of production or nonsupervisory jobs.  Average 
weekly earnings estimates are derived by multiplying the average hourly 
earnings and the average weekly hours estimates.  This is equivalent to 
dividing the estimated payroll by the number of production or 
nonsupervisory jobs.  The weekly and hourly earnings estimates for 
aggregate industries, such as the major industry division and the total 
private sector averages printed in this release, are derived by summing 
the corresponding payroll, hours, and employment estimates of the 
component industries.  As a result, each industry receives a "weight" in 
the published averages that corresponds to its current level of activity 
(employment or total hours).  This further implies that fluctuations and 
varying trends in employment in high-wage versus low-wage industries as 
well as wage rate changes influence the earnings averages.
	There are several characteristics of the series presented in this 
release that limit their suitability for some types of economic 
analyses.

(1) The denominator for the weekly earnings series is the number of 
private nonfarm production or nonsupervisory worker jobs.  This number 
includes full-time and part-time jobs as well as the jobs held by 
multiple jobholders in the private nonfarm sector.  These factors tend 
to result in weekly earnings averages significantly lower than the 
corresponding numbers for full-time jobs.  (2) Annual earnings averages 
can differ significantly from the result obtained by multiplying average 
weekly earnings times 52 weeks.  The difference may be due to factors 
such as turnovers and layoffs.  (3) The series are the average earnings 
of all production or nonsupervisory jobs, not the earnings average of 
"typical" jobs or jobs held by "typical" workers.  Specifically, there 
are no adjustments for occupational, age, or schooling variations or for 
household type or location.  Many studies have established the 
significance of these factors and that their impact varies over time.
	Seasonally adjusted data (table 2) are preferred by some users for 
analyzing general earnings trends in the economy since they eliminate 
the effect of changes that normally occur at the same time and in about 
the same magnitude each year and, therefore, reveal the underlying 
trends and cyclical movements.  Changes in average earnings may be due 
to seasonal changes in the proportion of workers in high-wage and low-
wage industries or occupations or to seasonal changes in the amount of 
overtime work, and so on.
	For more information, see Thomas Gavett, "Measures of Change in Real 
Wages and Earnings," Monthly Labor Review, February 1972.
	Information in this release will be made available to sensory impaired 
individuals upon request.  Voice phone:  202-606-STAT;  TDD phone:  202-
606-5897;  TDD Message Referral Phone Number: 1-800-326-2577.