Compensation and Working Conditions Fall 1999 29

National Compensation Survey Results

National

Compensation

Survey Produces

First Nationwide

Results

National Compensation Survey

The Bureau’s National Compensation Survey

program provides a broad array of occupational

data that were unavailable in the past. Virtually

every industry, except agriculture, private households, and the Federal Government, is included.

JOHN BUCKLEY

John Buckley is an economist in the Division of Compensation Data Analysis and Planning, Bureau of Labor Statistics.

Telephone: (202) 691-6299

E-mail: Buckley_J@bls.gov

The Bureau of Labor Statistics’ new National Compensation Survey (NCS) program completed its initial round of

establishment-based surveys for 149 metropolitan and

nonmetropolitan localities, enabling the publication of national1

 earnings estimates for many occupations. BLS systematically selected the survey areas to represent all of the

Nation’s metropolitan areas and nonmetropolitan counties.

BLS collected NCS earnings data between October 1996

and July 1998, with an average reference period of August

1997.

The NCS program replaced the Occupational Compensation Survey program that provided limited occupational

earnings data for a fixed (predetermined) list of survey jobs.

The new program uses a sampling technique that produces a

statistically representative sample of occupations for individual areas and the Nation.2

 From each sampled establishment a number of occupations, based on the establishment’s

employment size, are randomly selected. This “probability

selection of occupations” technique gives the more highly

populated occupations a greater chance of selection. After

selection, each occupation is classified into 1 of approximately 480 occupational codes that are part of the Census

Occupational Classification System. This hierarchical system aggregates jobs into a number of broader occupational

groups.

The 1997 NCS covered establishments with 50 or more

employees; the 1998 and 1999 surveys began phasing in establishments with fewer than 50 employees. The surveys

include virtually every industry, except agriculture, private

households, and the Federal Government.

The types of data presented in the national bulletin are

varied, ranging from the average (mean) hourly earnings of

approximately 67 million workers covered by the survey

($15.09) to the average earnings of part-time janitors in State

and local governments ($8.11).3

 Average hourly earnings of

the nearly 15 million State and local government workers

were about 24 percent higher than the average earnings of

the 52 million private workers covered by the survey ($17.82

versus $14.39).4 Table 1 shows hourly earnings data for private industry and State and local government by selected

characteristics. Table 2 shows similar data for metropolitan

and nonmetropolitan areas.5

Earnings by worker characteristics

As shown in table 1, workers are classified into three major

occupational categories: White-collar, blue-collar, and service workers. These categories summarize several subcategories in the occupational hierarchy. For example, the average wages for a specific occupation, such as mechanical

engineer, are published separately when publication criteria
30 Compensation and Working Conditions Fall 1999

are met; data for mechanical engineers are also included in

the succeeding higher level publication grouping, engineers,

architects, and surveyors. This process continues through

all levels—professional specialty, professional specialty and

technical, and white collar. Finally, data for white-collar,

blue-collar, and service workers are rolled into the total workers estimate.

Occupation. Average straight-time hourly earnings of workers in white-collar occupations were about 50 percent higher

than average earnings of blue-collar workers, and about

double the average earnings of service workers ($18.59,

$12.36, and $9.09, respectively). Within the white-collar

category, average hourly earnings ranged from $11.53 for

administrative support workers (including clerical) to $27.00

for executive, administrative, and managerial employees.

The average hourly earnings spread among blue-collar workers was not as broad, ranging from $9.34 for handlers, equipment cleaners, helpers, and laborers to $15.86 for precision

production, craft, and repair employees.

Full time versus part time. Full-time employees worked an

average of 39.6 hours a week compared to 21.0 hours worked

by part timers. The respective average hourly rates were

$15.77 and $8.89. Full-time workers averaged $15.12 an

hour in private industry and $18.20 in State and local governments; the range was wider for part-time workers in these

two sectors, with hourly averages of $8.37 reported for parttime workers in private industry and $12.27 for those in State

and local governments.

Union versus nonunion. The average hourly earnings of

unionized workers, $16.91, were considerably higher than

those of nonunion workers, $14.56. Unionized workers in

State and local governments averaged $19.74 an hour compared to $14.90 for unionized workers in private industry.

Nonunion workers in State and local governments had hourly

average earnings of $16.20, higher than the rate for unionized workers in private industry. The hourly rate for nonunion workers in private industry was $14.29. Readers should

be aware that union-nonunion differences may reflect variations in the distribution of union members and other workers

by occupation, industry, firm size, geographic location, and

other factors in addition to coverage under collective bargaining agreements.

Time versus incentive pay. The vast majority of workers

covered by the NCS (about 97 percent) are paid on a time

basis; no part of their pay is tied to an incentive or production payment. Average hourly earnings of incentive-paid

workers were about a dollar higher than the average for workers paid strictly on a time basis ($16.21 versus $15.05).

Earnings by establishment characteristics

The NCS presents average hourly data for workers in the

goods- and service-producing industries. It also presents

data for five establishment size categories as well as information for metropolitan and nonmetropolitan areas, and nine

census regions.6

Industry. Average hourly earnings of private industry workers in the goods-producing sector (mining, construction, and

manufacturing) were about 12 percent higher than earnings

of workers in the service-producing industries (transportation, communications, and public utilities; wholesale and retail trade; finance, insurance, and real estate; and service

industries). Hourly averages for the goods- and serviceproducing industries were $15.45 and $13.85, respectively.

(NCS does not classify data for State and local governments

by industry.)

Establishment size. There was a strong correlation between

earnings and establishment size. Average hourly earnings

of workers in establishments with 2,500 or more employees

($19.32) were more that 50 percent higher than those of

workers in establishments with 50 to 99 employees ($12.52).

Metropolitan versus nonmetropolitan. The hourly rate for

unionized workers in metropolitan areas was about $3 an

hour higher than for unionized workers in nonmetropolitan

areas ($17.32 versus $14.20). The average hourly pay gap

between nonunion workers in metropolitan areas and

nonmetropolitan areas was almost $4 ($15.25 versus $11.32).

Although incentive-paid workers generally had higher

average earnings than time-paid workers, in nonmetropolitan

areas time-paid workers averaged $11.87 an hour compared

to $10.74 an hour for incentive-paid workers.

Average earnings in metropolitan areas ranged from

$13.02 an hour in the smallest establishment category (employment size 50-99) to $19.34 an hour in the largest category (employment size 2,500 or more). The corresponding average hourly range in nonmetropolitan areas was $10.23

to $18.23.

Region. Among the nine census regions, average hourly

earnings ranged from $11.88 in the East South Central region to $17.42 in the Middle Atlantic region. The following

tabulation shows the relative average earnings for each region:

United States ($15.09) .......................................... 100

New England .................................................... 112

Middle Atlantic .................................................. 115

West South Central .......................................... 92

East South Central ........................................... 79

South Atlantic ................................................... 91

West North Central .......................................... 96

East North Central ........................................... 102

Mountain ........................................................... 93

Pacific ............................................................... 112

The national bulletin for the 1997 NCS provides considerably more earnings information than shown in this article.

It includes, for example, data for the 10 largest metropolitan

Region Pay relative
 Compensation and Working Conditions Fall 1999 31

National Compensation Survey Results

areas and for the work levels determined for each job by

using a “generic leveling” technique. For additional information on the NCS program, you may write to the Bureau of

Labor Statistics, Division of Compensation Data Analysis

and Planning, 2 Massachusetts Avenue, NE, Room 4175, Washington, DC 20212-0001, or e-mail OCLTINFO@bls.gov.

Additional information can also be obtained from the Bureau’s

Internet site at http://stats.bls.gov/comhome.htm.

1

 In the initial round of surveys, the NCS geographic scope excluded

Alaska and Hawaii. For a discussion on the selected NCS areas and the

sampling process, see Kenneth J. Hoffmann, “New Sample Areas Selected

for BLS National Compensation Survey Program,” Compensation and

Working Conditions, Spring 1997, pp. 27-31. 2

 See Harriet G. Weinstein, “Overview of the NCS: Summer 1998,”

Compensation and Working Conditions, Summer 1998, pp. 41-44. 3 Occupational Wages in the United States, 1997, Bulletin 2519 (Bureau of Labor Statistics, Washington, DC, 1999). 4

 Part of the earnings difference is explained by the different occupational mix between private industry and State and local government.

Highly paid professional specialty and technical workers, for example,

accounted for about 40 percent of all State and local government workers but for about 15 percent of private industry workers. For additional

information, see Albert E. Schwenk, "Compensation Cost Trends in Private Industry and State and Local Governments," in this issue of Compensation and Working Conditions, pp. 13-18.

5

 The national bulletin provides much finer occupational detail than

shown on tables 1 and 2. 6

 Some census regions include Metropolitan Statistical Areas or Consolidated Metropolitan Statistical Areas that cross State lines, the divisions are defined as: New England—Connecticut, Maine, Massachusetts,

New Hampshire, Rhode Island, and Vermont. Middle Atlantic—New

Jersey, New York, and Pennsylvania. East North Central—Illinois, Indiana, Michigan, Ohio, and Wisconsin. West North Central—Iowa,

Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota. South Atlantic—Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and West Virginia. East South Central—Alabama, Kentucky, Mississippi, and Tennessee. West South Central—Arkansas, Louisiana, Oklahoma, and Texas.

Mountain—Arizona, Colorado, Idaho, Montana, Nevada, New Mexico,

Utah, and Wyoming. Pacific—Alaska, California, Hawaii, Oregon, and

Washington. (Although Alaska and Hawaii are included in this region,

the 1997 NCS excluded these States.)
32 Compensation and Working Conditions Fall 1999

TABLE 1. Summary, United States: Mean hourly earnings1 and weekly hours by selected characteristics, private industry and

State and local government, National Compensation Survey,2 1997

Worker and establishment characteristics 

and geographic areas

Total Private industry State and local government

Hourly earnings

Mean

weekly

hours

Hourly earnings

Mean

weekly

hours

Hourly earnings

Mean

weekly

Mean hours

Relative

error3

(percent)

Mean

Relative

error3

(percent)

Mean

Relative

error3

(percent)

Total ................................................................... $15.09 0.6 36.5 $14.39 0.7 36.4 $17.82 0.7 36.5

Worker characteristics:4

White-collar occupations5 ............................... 18.59 .6 36.7 18.08 .8 36.8 20.08 .8 36.4

Professional specialty and technical ........... 22.89 .6 36.3 22.30 .7 36.6 23.84 .8 35.9

Executive, administrative, and 

managerial ................................................ 27.00 .9 40.1 27.86 .8 40.5 23.95 1.9 38.6

Sales ........................................................... 12.78 3.5 33.0 12.80 3.5 33.0 11.13 4.7 33.1

Administrative support ................................ 11.53 .6 36.9 11.54 .7 37.1 11.50 .9 36.3

Blue-collar occupations5 ................................. 12.36 .8 38.3 12.24 .8 38.4 13.78 1.2 37.3

Precision production, craft, and repair ........ 15.86 1.2 39.8 15.88 1.3 39.8 15.71 1.6 39.6

Machine operators, assemblers, and

inspectors ................................................. 11.03 1.1 39.6 11.02 1.1 39.6 12.89 6.1 38.3

Transportation and material moving ........... 13.24 1.2 37.5 13.30 1.4 38.3 12.93 1.7 33.6

Handlers, equipment cleaners, helpers,

and laborers .............................................. 9.34 1.0 35.5 9.18 1.0 35.2 11.37 2.1 38.3

Service occupations5 ...................................... 9.09 .8 33.0 7.51 .6 31.9 13.26 1.3 36.6

Full time .......................................................... 15.77 .6 39.6 15.12 .7 39.8 18.20 .8 38.9

Part time ......................................................... 8.89 1.1 21.0 8.37 1.2 21.4 12.27 1.4 19.2

Union .............................................................. 16.91 .9 36.9 14.90 1.3 37.1 19.74 1.0 36.7

Nonunion ........................................................ 14.56 .7 36.3 14.29 .8 36.3 16.20 .9 36.4

Time ................................................................ 15.05 .6 36.4 14.31 .7 36.4 17.82 .7 36.5

Incentive ......................................................... 16.21 2.7 38.3 16.21 2.7 38.3 – – –

Establishment characteristics:

Goods producing ............................................ 6 ( ) 6 ( ) 6 ( ) 15.45 1.0 39.8 6 ( ) 6 ( ) 6 ( )

Service producing ........................................... 6 ( ) 6 ( ) 6 ( ) 13.85 .9 34.9 6 ( ) 6 ( ) 6 ( )

50-99 workers7 ............................................... 12.52 1.2 35.3 12.44 1.3 35.3 13.96 3.6 36.1

100-499 workers ............................................. 13.68 .7 36.2 13.32 .8 36.3 16.89 1.4 35.6

500-999 workers ............................................. 16.15 1.5 37.4 15.66 1.7 37.8 18.20 1.8 35.7

1,000-2,499 workers ....................................... 15.54 6.8 36.7 14.91 8.5 36.9 17.51 1.9 35.9

2,500 workers or more .................................... 19.32 .9 37.2 20.21 1.6 37.0 18.57 1.0 37.4

Geographic areas:8

Metropolitan .................................................... 15.73 .7 36.3 15.06 .8 36.3 18.46 .8 36.5

Nonmetropolitan ............................................. 11.84 1.2 37.1 10.84 1.4 37.2 15.07 1.8 36.5

New England .................................................. 16.96 1.8 35.1 16.29 2.1 35.0 20.14 2.1 35.2

Middle Atlantic ................................................ 17.42 1.5 35.7 16.47 1.7 35.8 21.25 1.5 35.5

East North Central .......................................... 15.45 .9 36.2 14.85 1.0 36.3 18.51 1.3 35.8

West North Central ......................................... 14.44 1.8 36.3 13.70 2.2 36.2 17.24 .8 36.8

South Atlantic ................................................. 13.73 1.4 37.0 13.20 1.8 36.7 15.47 1.4 37.9

East South Central ......................................... 11.88 2.3 37.8 11.34 2.5 38.0 15.22 1.7 36.9

West South Central ........................................ 13.82 1.0 37.2 13.45 1.2 37.0 14.96 1.3 37.8

Mountain ......................................................... 14.04 1.9 36.5 12.97 2.6 36.4 17.42 1.9 36.5

Pacific ............................................................. 16.88 1.5 36.2 15.89 1.8 36.4 20.23 1.7 35.5

1 Earnings are the straight-time hourly wages or salaries paid to employees. They

include incentive pay, cost-of-living adjustments, and hazard pay. Excluded are

premium pay for overtime, vacations, and holidays; nonproduction bonuses; and tips. 

The mean is computed by totaling the pay of all workers and dividing by the number of

workers, weighted by hours. 2 This survey covers the 48 contiguous States. Collection was conducted from

October 1996 through July 1998. The average reference month was August 1997. 3 The relative standard error is the standard error expressed as a percent of the

estimate. It can be used to calculate a "confidence interval" around a sample estimate. 4 Employees are classified as working either a full- or part-time schedule based on

the definition used by each establishment. Union workers are those whose wages are

determined through collective bargaining. Wages of time workers are based solely on

hourly rate or salary; incentive workers are those whose wages are at least partially

based on productivity payments such as piece rates, commissions, and production

bonuses. 5 A classification system including about 480 individual occupations is used to

cover all workers in the civilian economy. 6 Classification of establishments into goods-producing and service-producing

industries applies to private industry only. 7 Establishments classified with 50-99 workers may contain establishments with

fewer than 50 due to staff reductions between survey sampling and collection. 8 Data are presented for metropolitan and nonmetropolitan area divisions as well

as 9 census area divisions. See footnote 6 in the text for a list of States in each census

area division.

 NOTE: Dashes indicate that no data were reported or that data did not meet

publication criteria. 
 Compensation and Working Conditions Fall 1999 33

TABLE 2. Summary, metropolitan and nonmetropolitan areas:

National Compensation Survey Results

1 Mean hourly earnings2 and weekly hours by selected

characteristics, National Compensation Survey,3 1997

Worker and establishment characteristics

 and geographic areas

Total Metropolitan areas Nonmetropolitan areas

Hourly earnings

Mean

weekly

hours

Hourly earnings

Mean

weekly

hours

Hourly earnings

Mean

weekly

Mean hours

Relative

error4

(percent)

Mean

Relative

error4

(percent)

Mean

Relative

error4

(percent)

Total ................................................................... $15.09 0.6 36.5 $15.73 0.7 36.3 $11.84 1.2 37.1

Private industry ............................................... 14.39 .7 36.4 15.06 .8 36.3 10.84 1.4 37.2

State and local government ............................ 17.82 .7 36.5 18.46 .8 36.5 15.07 1.8 36.5

Worker characteristics:5

White-collar occupations6 ............................... 18.59 .6 36.7 19.07 .8 36.6 15.15 1.2 37.0

Professional specialty and technical ........... 22.89 .6 36.3 23.34 .6 36.3 19.63 1.2 36.5

Executive, administrative, and 

managerial ................................................ 27.00 .9 40.1 27.40 1.0 40.1 23.15 2.6 39.7

Sales ........................................................... 12.78 3.5 33.0 13.55 2.2 32.6 8.72 4.5 35.3

Administrative support ................................ 11.53 .6 36.9 11.73 .7 36.9 10.10 1.5 37.4

Blue-collar occupations6 ................................. 12.36 .8 38.3 12.78 .7 38.2 10.74 2.1 38.8

Precision production, craft, and repair ........ 15.86 1.2 39.8 16.44 .8 39.7 13.27 4.5 39.9

Machine operators, assemblers, and

inspectors ................................................. 11.03 1.1 39.6 11.39 1.0 39.6 10.04 2.7 39.7

Transportation and material moving ........... 13.24 1.2 37.5 13.46 1.2 37.6 11.85 4.2 36.7

Handlers, equipment cleaners, helpers,

and laborers .............................................. 9.34 1.0 35.5 9.48 1.1 35.1 8.81 2.0 37.0

Service occupations6 ...................................... 9.09 .8 33.0 9.40 1.0 32.6 8.00 1.5 34.5

Full time .......................................................... 15.77 .6 39.6 16.51 .7 39.6 12.15 1.3 39.7

Part time ......................................................... 8.89 1.1 21.0 9.01 1.2 21.1 8.09 1.5 20.6

Union .............................................................. 16.91 .9 36.9 17.32 .6 36.7 14.20 4.5 38.1

Nonunion ........................................................ 14.56 .7 36.3 15.25 .8 36.2 11.32 1.4 36.8

Time ................................................................ 15.05 .6 36.4 15.69 .7 36.3 11.87 1.2 37.0

Incentive ......................................................... 16.21 2.7 38.3 16.87 2.5 38.2 10.74 11.4 38.8

Establishment characteristics:

Goods producing7 .......................................... 15.45 1.0 39.8 16.40 .8 39.8 12.06 2.3 39.9

Service producing7 ......................................... 13.85 .9 34.9 14.44 1.0 34.9 9.77 1.3 35.2

50-99 workers8 ............................................... 12.52 1.2 35.3 13.02 1.3 35.3 10.23 2.6 35.3

100-499 workers ............................................. 13.68 .7 36.2 14.10 .8 36.1 11.78 1.7 36.5

500-999 workers ............................................. 16.15 1.5 37.4 16.65 1.4 37.2 14.29 3.2 38.2

1,000-2,499 workers ....................................... 15.54 6.8 36.7 17.03 1.9 36.0 10.91 15.8 38.6

2,500 workers or more .................................... 19.32 .9 37.2 19.34 .9 37.2 18.23 8.8 39.3

Geographic areas:9

New England .................................................. 16.96 1.8 35.1 17.42 1.8 35.2 13.75 5.3 34.0

Middle Atlantic ................................................ 17.42 1.5 35.7 17.75 1.3 35.7 12.22 7.4 36.1

East North Central .......................................... 15.45 .9 36.2 15.90 1.0 36.2 12.98 1.3 36.4

West North Central ......................................... 14.44 1.8 36.3 15.40 2.2 36.3 11.82 3.7 36.2

South Atlantic ................................................. 13.73 1.4 37.0 14.17 1.7 36.9 11.56 4.0 37.4

East South Central ......................................... 11.88 2.3 37.8 13.60 1.6 37.0 10.22 3.7 38.7

West South Central ........................................ 13.82 1.0 37.2 14.13 1.2 37.2 11.88 4.0 37.3

Mountain ......................................................... 14.04 1.9 36.5 14.17 2.4 36.4 13.51 2.4 36.6

Pacific ............................................................. 16.88 1.5 36.2 17.06 1.5 36.2 13.37 2.9 36.1

1 Metropolitan areas can be a Metropolitan Statistical Area or Consolidated

Metropolitan Statistical Area as defined by the Office of Management and Budget,

1994. Nonmetropolitan areas are counties that do not fit the definitions above. 2 Earnings are the straight-time hourly wages or salaries paid to employees. They

include incentive pay, cost-of-living adjustments, and hazard pay. Excluded are

premium pay for overtime, vacations, and holidays; nonproduction bonuses; and tips. 

The mean is computed by totaling the pay of all workers and dividing by the number of

workers, weighted by hours. 3 This survey covers the 48 contiguous States. Collection was conducted from

October 1996 through July 1998. The average reference month was August 1997. 4 The relative standard error is the standard error expressed as a percent of the

estimate. It can be used to calculate a "confidence interval" around a sample estimate. 5 Employees are classified as working either a full- or part-time schedule based on

the definition used by each establishment. Union workers are those whose wages are

determined through collective bargaining. Wages of time workers are based solely on

hourly rate or salary; incentive workers are those whose wages are at least partially

based on productivity payments such as piece rates, commissions, and production

bonuses. 6 A classification system including about 480 individual occupations is used to

cover all workers in the civilian economy. 7 Classification of establishments into goods-producing and service-producing

industries applies to private industry only. 8 Establishments classified with 50-99 workers may contain establishments with

fewer than 50 workers due to reduction in staff from the time of sampling to data

collection. 9 See footnote 6 in the text for a list of States in each census area division.