Occupational Pay Comparisons Among Metropolitan Areas News Release
Technical Contact: USDL 09-0843 (202) 691-6199 NCSinfo@bls.gov Media Contact: (202) 691-5902 FOR RELEASE: 10:00 AM EDT Internet Address: FRIDAY, JULY 24, 2009 http;//www.bls.gov/ncs OCCUPATIONAL PAY COMPARISONS AMONG METROPOLITAN AREAS, 2008 Average pay for civilian workers in the San Jose-San Francisco-Oakland, CA metropolitan area was 19 percent above the national average in 2008, one of 77 metropolitan areas studied by the National Compensation Survey (NCS), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The Brownsville-Harlingen, TX metropolitan area had a pay relative of 77, meaning workers earned an average of 77 cents for every dollar earned by workers nationwide. Using data from the NCS, pay relatives--a means of assessing pay differences--are available for each of the nine major occupational groups within surveyed metropolitan areas, as well as averaged across all occupations for each area. The average pay relative nationally for all occupations and for each occupational group equals 100. (See table 1.) A pay relative is a calculation of pay—wages, salaries, commissions, and production bonuses--for a given metropolitan area relative to the nation as a whole. The calculation controls for differences among areas in occupational composition, establishment and occupational characteristics, and the fact that data are collected for areas at different times during the year. Simple pay comparisons calculating the ratio of the average pay for an area to the entire United States in percentage terms would not control for interarea differences in occupational composition and other factors, which may have a significant effect on pay relatives. Pay relatives calculated for all occupations were significantly different from the national average in 65 of the 77 areas. Table A below lists selected metropolitan area pay relatives compared to average pay nationally among those studied in the NCS. Table B provides selected metropolitan area pay relatives for each of nine major occupational groups. In addition, area-to-area comparisons have been calculated for all 77 metropolitan areas and will soon be available on the BLS website at http://www.bls.gov/ncs/ocs/payrel.htm. Table A. Selected metropolitan area pay relatives (of 77 metropolitan areas surveyed) Metropolitan Area Pay Relative (Average pay nationally = 100) San Jose-San Francisco-Oakland, CA 119 New York-Newark-Bridgeport, NY-NJ-CT-PA 114 Boston-Worcester-Manchester, MA-NH 111 Los Angeles-Long Beach-Riverside, CA 109 Washington-Baltimore-Northern Virginia, DC-MD-VA-WV 109 Chicago-Naperville-Michigan City, IL-IN-WI 108 Philadelphia-Camden-Vineland, PA-NJ-DE-MD 105 Atlanta-Sandy Springs-Gainesville, GA-AL 100 Houston-Baytown-Huntsville, TX 98 Dallas-Fort Worth, TX 97 Table B. Selected metropolitan area-to-national pay relatives for nine major occupational groups, 2008 (of 77 metropolitan areas surveyed) Major Occupational Group Metropolitan Area Pay Relative Management, business, and financial New York-Newark-Bridgeport, NY-NJ-CT-PA 115 Salinas, CA 113 Professional and related Salinas, CA 120 San Jose-San Francisco-Oakland, CA 119 Service San Jose-San Francisco-Oakland, CA 126 Salinas, CA 123 Sales and related Salinas, CA 129 San Jose-San Francisco-Oakland, CA 122 Office and administrative support San Jose-San Francisco-Oakland, CA 120 New York-Newark-Bridgeport, NY-NJ-CT-PA 116 Construction and extraction New York-Newark-Bridgeport, NY-NJ-CT-PA 132 Chicago-Naperville-Michigan City, IL-IN-WI 131 Installation, maintenance, and repair Salinas, CA 124 San Jose-San Francisco-Oakland, CA 117 Production Sacramento-Arden-Arcade-Truckee, CA-NV 121 Bloomington-Normal, IL 116 Detroit-Warren-Flint, MI 116 Seattle-Tacoma-Olympia, WA 116 Transportation and material moving Springfield, MA 114 Fort Collins-Loveland, CO 113 The pay relative for construction and extraction occupations in the New York-Newark-Bridgeport, NY-NJ-CT-PA area was 132, meaning the pay in the New York metropolitan area for that occupational group averaged 32 percent more than the national average pay for that occupational group. By contrast, the pay relative for workers in construction and extraction in the Brownsville-Harlingen, Texas area was 66, meaning pay for workers in those occupations averaged 34 percent less than the national average. (See table 1.) Using pay relative data To assist data users in analyzing these data, tests have been conducted to determine whether differences between each pay relative and the pay relative for the nation as a whole are statistically significant (that is, the difference in pay for occupations in that area from the national average cannot be accounted for by sampling error). Similar tests are conducted for the area-to-area comparisons. In Table 1, statistically significant pay relatives are denoted with an asterisk (*). More information on pay relative controls, calculations, and significance testing is available in the Technical Note. Yearly differences in area and occupational group pay relatives do not infer changes in underlying economic conditions.
Table 1. Pay relatives for major occupational groups in metropolitan areas, National Compensation Survey, July 2008 (Average pay nationally for all occupations and for each occupational group shown = 100.) Management, Metropolitan Area(1) All business, occupations and financial United States......................... 100 100 Amarillo, TX.......................... 89* 98 Atlanta-Sandy Springs-Gainesville, GA-AL................................. 100 102 Austin-Round Rock, TX................. 93* 92* Birmingham-Hoover, AL................. 96* 103 Bloomington, IN....................... 90* 91* Bloomington-Normal, IL................ 101 100 Boston-Worcester-Manchester, MA-NH.... 111* 105* Brownsville-Harlingen, TX............. 77* 90* Buffalo-Niagara-Cattaraugus, NY....... 99* 89* Charleston-North Charleston-Summerville, SC............ 92* 92* Charlotte-Gastonia-Concord, NC-SC..... 99 105 Chicago-Naperville-Michigan City, IL-IN-WI.............................. 108* 104 Cincinnati-Middletown-Wilmington, OH-KY-IN.............................. 99 95 Cleveland-Akron-Elyria, OH............ 99 100 Columbus-Marion-Chillicothe, OH....... 99 96 Corpus Christi, TX.................... 89* 85* Dallas-Fort Worth, TX................. 97* 99 Dayton-Springfield-Greenville, OH..... 96* 100 Denver-Aurora-Boulder, CO............. 104* 100 Detroit-Warren-Flint, MI.............. 104* 95* Elkhart-Goshen, IN.................... 96* 96* Fort Collins-Loveland, CO............. 102* 93* Grand Rapids-Wyoming, MI.............. 99 90* Great Falls, MT....................... 88* 86* Greensboro-High Point, NC............. 95* 100 Greenville-Mauldin-Easley, SC......... 93* 105 Hartford-West Hartford-Willimantic, CT.................................... 111* 105 Hickory-Lenoir-Morganton, NC.......... 94* 95* Honolulu, HI.......................... 105* 105 Houston-Baytown-Huntsville, TX........ 98* 103 Huntsville-Decatur, AL................ 96* 95 See footnotes at end of table. (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Metropolitan Area(1) Professional Service and related United States......................... 100 100 Amarillo, TX.......................... 83* 91* Atlanta-Sandy Springs-Gainesville, GA-AL................................. 102 96* Austin-Round Rock, TX................. 92* 91* Birmingham-Hoover, AL................. 100 96* Bloomington, IN....................... 91* 86* Bloomington-Normal, IL................ 102* 106* Boston-Worcester-Manchester, MA-NH.... 108* 114* Brownsville-Harlingen, TX............. 87* 80* Buffalo-Niagara-Cattaraugus, NY....... 92* 107* Charleston-North Charleston-Summerville, SC............ 95* 87* Charlotte-Gastonia-Concord, NC-SC..... 94* 97 Chicago-Naperville-Michigan City, IL-IN-WI.............................. 107* 107* Cincinnati-Middletown-Wilmington, OH-KY-IN.............................. 102 101 Cleveland-Akron-Elyria, OH............ 97 100 Columbus-Marion-Chillicothe, OH....... 96* 102 Corpus Christi, TX.................... 88* 85* Dallas-Fort Worth, TX................. 99 92* Dayton-Springfield-Greenville, OH..... 92* 95* Denver-Aurora-Boulder, CO............. 103 106* Detroit-Warren-Flint, MI.............. 103* 100 Elkhart-Goshen, IN.................... 92* 94* Fort Collins-Loveland, CO............. 96* 99 Grand Rapids-Wyoming, MI.............. 95 105* Great Falls, MT....................... 77* 96* Greensboro-High Point, NC............. 94* 92* Greenville-Mauldin-Easley, SC......... 88* 94* Hartford-West Hartford-Willimantic, CT.................................... 108* 120* Hickory-Lenoir-Morganton, NC.......... 84* 89* Honolulu, HI.......................... 101 116* Houston-Baytown-Huntsville, TX........ 101 85* Huntsville-Decatur, AL................ 96* 94* See footnotes at end of table. (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Office and Metropolitan Area(1) Sales and administra- related tive support United States......................... 100 100 Amarillo, TX.......................... 91* 89* Atlanta-Sandy Springs-Gainesville, GA-AL................................. 96 105* Austin-Round Rock, TX................. 95* 94* Birmingham-Hoover, AL................. 93 97 Bloomington, IN....................... 83* 92* Bloomington-Normal, IL................ 102 95* Boston-Worcester-Manchester, MA-NH.... 109* 115* Brownsville-Harlingen, TX............. 70* 76* Buffalo-Niagara-Cattaraugus, NY....... 93* 95* Charleston-North Charleston-Summerville, SC............ 96* 95* Charlotte-Gastonia-Concord, NC-SC..... 100 99 Chicago-Naperville-Michigan City, IL-IN-WI.............................. 107* 110* Cincinnati-Middletown-Wilmington, OH-KY-IN.............................. 94 99 Cleveland-Akron-Elyria, OH............ 94* 100 Columbus-Marion-Chillicothe, OH....... 100 98 Corpus Christi, TX.................... 89* 86* Dallas-Fort Worth, TX................. 105 100 Dayton-Springfield-Greenville, OH..... 95* 91* Denver-Aurora-Boulder, CO............. 104 104* Detroit-Warren-Flint, MI.............. 99 103* Elkhart-Goshen, IN.................... 91* 93* Fort Collins-Loveland, CO............. 103* 104* Grand Rapids-Wyoming, MI.............. 106 99 Great Falls, MT....................... 87* 80* Greensboro-High Point, NC............. 99 98* Greenville-Mauldin-Easley, SC......... 88* 97 Hartford-West Hartford-Willimantic, CT.................................... 109 113* Hickory-Lenoir-Morganton, NC.......... 94* 93* Honolulu, HI.......................... 109* 96* Houston-Baytown-Huntsville, TX........ 102 99 Huntsville-Decatur, AL................ 99 95* See footnotes at end of table. (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Construction Installation Metropolitan Area(1) and maintenance, extraction and repair United States......................... 100 100 Amarillo, TX.......................... 86* 91* Atlanta-Sandy Springs-Gainesville, GA-AL................................. 88* 101 Austin-Round Rock, TX................. 82* 103 Birmingham-Hoover, AL................. 85* 102 Bloomington, IN....................... 77* 81* Bloomington-Normal, IL................ 103 94 Boston-Worcester-Manchester, MA-NH.... 120* 113* Brownsville-Harlingen, TX............. 66* 90* Buffalo-Niagara-Cattaraugus, NY....... 113* 101 Charleston-North Charleston-Summerville, SC............ 78* 86* Charlotte-Gastonia-Concord, NC-SC..... 91* 99 Chicago-Naperville-Michigan City, IL-IN-WI.............................. 131* 110* Cincinnati-Middletown-Wilmington, OH-KY-IN.............................. 91 100 Cleveland-Akron-Elyria, OH............ 103 105 Columbus-Marion-Chillicothe, OH....... 99 99 Corpus Christi, TX.................... 99 101 Dallas-Fort Worth, TX................. 90* 97 Dayton-Springfield-Greenville, OH..... 94* 93* Denver-Aurora-Boulder, CO............. 98 116* Detroit-Warren-Flint, MI.............. 100 99 Elkhart-Goshen, IN.................... 110* 87* Fort Collins-Loveland, CO............. 103* 108* Grand Rapids-Wyoming, MI.............. 108* 94* Great Falls, MT....................... 114* 98 Greensboro-High Point, NC............. 88* 87* Greenville-Mauldin-Easley, SC......... 78* 85* Hartford-West Hartford-Willimantic, CT.................................... 113* 107 Hickory-Lenoir-Morganton, NC.......... 97 93* Honolulu, HI.......................... 118* 112* Houston-Baytown-Huntsville, TX........ 91* 96 Huntsville-Decatur, AL................ 89* 92* See footnotes at end of table. (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Transporta- Metropolitan Area(1) Production tion and material moving United States......................... 100 100 Amarillo, TX.......................... 94* 92* Atlanta-Sandy Springs-Gainesville, GA-AL................................. 103 101 Austin-Round Rock, TX................. 91 92* Birmingham-Hoover, AL................. 91* 102 Bloomington, IN....................... 99 104* Bloomington-Normal, IL................ 116* 99 Boston-Worcester-Manchester, MA-NH.... 106* 110* Brownsville-Harlingen, TX............. 75* 72* Buffalo-Niagara-Cattaraugus, NY....... 108* 98* Charleston-North Charleston-Summerville, SC............ 102 99 Charlotte-Gastonia-Concord, NC-SC..... 103 98 Chicago-Naperville-Michigan City, IL-IN-WI.............................. 103 105* Cincinnati-Middletown-Wilmington, OH-KY-IN.............................. 100 103 Cleveland-Akron-Elyria, OH............ 102 102 Columbus-Marion-Chillicothe, OH....... 101 100 Corpus Christi, TX.................... 92* 87* Dallas-Fort Worth, TX................. 91* 102 Dayton-Springfield-Greenville, OH..... 105* 102* Denver-Aurora-Boulder, CO............. 104 104 Detroit-Warren-Flint, MI.............. 116* 108* Elkhart-Goshen, IN.................... 98 102* Fort Collins-Loveland, CO............. 103 113* Grand Rapids-Wyoming, MI.............. 101 98 Great Falls, MT....................... 93* 97* Greensboro-High Point, NC............. 99 103 Greenville-Mauldin-Easley, SC......... 106* 93* Hartford-West Hartford-Willimantic, CT.................................... 112* 109* Hickory-Lenoir-Morganton, NC.......... 101 101 Honolulu, HI.......................... 109 96 Houston-Baytown-Huntsville, TX........ 100 94* Huntsville-Decatur, AL................ 99 101 See footnotes at end of table. (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Management, Metropolitan Area(1) All business, occupations and financial Indianapolis-Anderson-Columbus, IN.... 95* 81* Iowa City, IA......................... 97* 98 Johnstown, PA......................... 86* 83* Kansas City, MO-KS.................... 99 92* Kennewick-Pasco-Richland, WA.......... 102* 102 Knoxville, TN......................... 91* 105 Lincoln, NE........................... 88* 83* Los Angeles-Long Beach-Riverside, CA.................................... 109* 110* Louisville/Jefferson County-Elizabethtown-Scottsburg, KY-IN................................. 94* 89* Memphis, TN-MS-AR..................... 94* 93* Miami-Fort Lauderdale-Pompano Beach, FL.................................... 98* 105 Milwaukee-Racine-Waukesha, WI......... 99 97 Minneapolis-St. Paul-St. Cloud, MN-WI................................. 108* 108 Mobile, AL............................ 92* 94 New Orleans-Metairie-Kenner, LA....... 97* 93* New York-Newark-Bridgeport, NY-NJ-CT-PA........................... 114* 115* Ocala, FL............................. 89* 77* Oklahoma City, OK..................... 92* 87* Orlando-Kissimmee, FL................. 91* 89* Palm Bay-Melbourne-Titusville, FL..... 92* 86* Philadelphia-Camden-Vineland, PA-NJ-DE-MD........................... 105* 104* Phoenix-Mesa-Scottsdale, AZ........... 99 102 Pittsburgh-New Castle, PA............. 95* 88* Portland-Vancouver-Beaverton, OR-WA... 105* 98 Providence-New Bedford-Fall River, RI-MA................................. 108* 102 Reading, PA........................... 101 106* Reno-Sparks, NV....................... 99* 96* Richmond, VA.......................... 97* 97 Rochester, NY......................... 99* 91 Rockford, IL.......................... 98* 89* See footnotes at end of table. (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Metropolitan Area(1) Professional Service and related Indianapolis-Anderson-Columbus, IN.... 97* 93* Iowa City, IA......................... 93* 101 Johnstown, PA......................... 84* 91* Kansas City, MO-KS.................... 98 98 Kennewick-Pasco-Richland, WA.......... 95* 111* Knoxville, TN......................... 99 82* Lincoln, NE........................... 83* 91* Los Angeles-Long Beach-Riverside, CA.................................... 110* 112* Louisville/Jefferson County-Elizabethtown-Scottsburg, KY-IN................................. 91* 97* Memphis, TN-MS-AR..................... 92* 86* Miami-Fort Lauderdale-Pompano Beach, FL.................................... 96* 101 Milwaukee-Racine-Waukesha, WI......... 95* 97 Minneapolis-St. Paul-St. Cloud, MN-WI................................. 103* 116* Mobile, AL............................ 91* 90* New Orleans-Metairie-Kenner, LA....... 102 95* New York-Newark-Bridgeport, NY-NJ-CT-PA........................... 115* 114* Ocala, FL............................. 84* 93* Oklahoma City, OK..................... 90* 91* Orlando-Kissimmee, FL................. 87* 90* Palm Bay-Melbourne-Titusville, FL..... 86* 96 Philadelphia-Camden-Vineland, PA-NJ-DE-MD........................... 107* 104* Phoenix-Mesa-Scottsdale, AZ........... 101 99 Pittsburgh-New Castle, PA............. 94* 95* Portland-Vancouver-Beaverton, OR-WA... 100 112* Providence-New Bedford-Fall River, RI-MA................................. 111* 113* Reading, PA........................... 92* 99 Reno-Sparks, NV....................... 98* 99 Richmond, VA.......................... 96* 97* Rochester, NY......................... 98* 109* Rockford, IL.......................... 97 101 See footnotes at end of table. (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Office and Metropolitan Area(1) Sales and administra- related tive support Indianapolis-Anderson-Columbus, IN.... 84* 97 Iowa City, IA......................... 96* 99 Johnstown, PA......................... 85* 87* Kansas City, MO-KS.................... 102 98 Kennewick-Pasco-Richland, WA.......... 103* 96* Knoxville, TN......................... 98* 90* Lincoln, NE........................... 85* 88* Los Angeles-Long Beach-Riverside, CA.................................... 111* 107* Louisville/Jefferson County-Elizabethtown-Scottsburg, KY-IN................................. 102 97* Memphis, TN-MS-AR..................... 102 97* Miami-Fort Lauderdale-Pompano Beach, FL.................................... 97 100 Milwaukee-Racine-Waukesha, WI......... 106 101 Minneapolis-St. Paul-St. Cloud, MN-WI................................. 107* 104* Mobile, AL............................ 93 93* New Orleans-Metairie-Kenner, LA....... 97 97 New York-Newark-Bridgeport, NY-NJ-CT-PA........................... 113* 116* Ocala, FL............................. 91* 90* Oklahoma City, OK..................... 95* 89* Orlando-Kissimmee, FL................. 96 90* Palm Bay-Melbourne-Titusville, FL..... 93* 88* Philadelphia-Camden-Vineland, PA-NJ-DE-MD........................... 97 106* Phoenix-Mesa-Scottsdale, AZ........... 108* 99 Pittsburgh-New Castle, PA............. 92* 97* Portland-Vancouver-Beaverton, OR-WA... 109* 107* Providence-New Bedford-Fall River, RI-MA................................. 102 106* Reading, PA........................... 107* 100 Reno-Sparks, NV....................... 106* 100 Richmond, VA.......................... 94* 101 Rochester, NY......................... 98* 99 Rockford, IL.......................... 97* 96* See footnotes at end of table. (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Construction Installation Metropolitan Area(1) and maintenance, extraction and repair Indianapolis-Anderson-Columbus, IN.... 92* 96 Iowa City, IA......................... 104 100 Johnstown, PA......................... 91 88* Kansas City, MO-KS.................... 98 98 Kennewick-Pasco-Richland, WA.......... 107* 100 Knoxville, TN......................... 78* 82* Lincoln, NE........................... 85* 89* Los Angeles-Long Beach-Riverside, CA.................................... 111* 110* Louisville/Jefferson County-Elizabethtown-Scottsburg, KY-IN................................. 93 91* Memphis, TN-MS-AR..................... 95* 99 Miami-Fort Lauderdale-Pompano Beach, FL.................................... 91* 96 Milwaukee-Racine-Waukesha, WI......... 105 98 Minneapolis-St. Paul-St. Cloud, MN-WI................................. 114* 102 Mobile, AL............................ 93* 88* New Orleans-Metairie-Kenner, LA....... 94 95* New York-Newark-Bridgeport, NY-NJ-CT-PA........................... 132* 113* Ocala, FL............................. 76* 101 Oklahoma City, OK..................... 114* 96 Orlando-Kissimmee, FL................. 94* 96 Palm Bay-Melbourne-Titusville, FL..... 93* 99 Philadelphia-Camden-Vineland, PA-NJ-DE-MD........................... 104 110* Phoenix-Mesa-Scottsdale, AZ........... 91* 102 Pittsburgh-New Castle, PA............. 93* 95 Portland-Vancouver-Beaverton, OR-WA... 114* 116* Providence-New Bedford-Fall River, RI-MA................................. 110* 111* Reading, PA........................... 102 99 Reno-Sparks, NV....................... 88* 102 Richmond, VA.......................... 88* 99 Rochester, NY......................... 95 88* Rockford, IL.......................... 110* 96* See footnotes at end of table. (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Transporta- Metropolitan Area(1) Production tion and material moving Indianapolis-Anderson-Columbus, IN.... 109* 100 Iowa City, IA......................... 99 94* Johnstown, PA......................... 85* 83* Kansas City, MO-KS.................... 102 97 Kennewick-Pasco-Richland, WA.......... 100 105* Knoxville, TN......................... 86* 96* Lincoln, NE........................... 88* 99 Los Angeles-Long Beach-Riverside, CA.................................... 99 102 Louisville/Jefferson County-Elizabethtown-Scottsburg, KY-IN................................. 102 91* Memphis, TN-MS-AR..................... 94* 94* Miami-Fort Lauderdale-Pompano Beach, FL.................................... 92* 97 Milwaukee-Racine-Waukesha, WI......... 105* 104 Minneapolis-St. Paul-St. Cloud, MN-WI................................. 111* 107* Mobile, AL............................ 96* 98 New Orleans-Metairie-Kenner, LA....... 104 101 New York-Newark-Bridgeport, NY-NJ-CT-PA........................... 107* 108* Ocala, FL............................. 94* 101 Oklahoma City, OK..................... 85* 86* Orlando-Kissimmee, FL................. 99 108 Palm Bay-Melbourne-Titusville, FL..... 107* 112* Philadelphia-Camden-Vineland, PA-NJ-DE-MD........................... 99 104 Phoenix-Mesa-Scottsdale, AZ........... 96 100 Pittsburgh-New Castle, PA............. 97 95 Portland-Vancouver-Beaverton, OR-WA... 103 102 Providence-New Bedford-Fall River, RI-MA................................. 110* 108* Reading, PA........................... 102* 99 Reno-Sparks, NV....................... 98 101 Richmond, VA.......................... 105* 99 Rochester, NY......................... 103 98* Rockford, IL.......................... 100 103* See footnotes at end of table. (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Management, Metropolitan Area(1) All business, occupations and financial Sacramento-Arden-Arcade-Truckee, CA-NV................................. 109* 106* Salinas, CA........................... 113* 113* San Antonio, TX....................... 91* 95* San Diego-Carlsbad-San Marcos, CA..... 109* 106* San Jose-San Francisco-Oakland, CA.... 119* 111* Seattle-Tacoma-Olympia, WA............ 110* 103 Springfield, MA....................... 110* 100 Springfield, MO....................... 89* 84* St. Louis, MO-IL...................... 104* 100 Tallahassee, FL....................... 89* 83* Tampa-St. Petersburg-Clearwater, FL... 93* 93* Virginia Beach-Norfolk-Newport News, VA-NC................................. 92* 85* Visalia-Porterville, CA............... 100 89* Washington-Baltimore-Northern Virginia, DC-MD-VA-WV................. 109* 105* York-Hanover, PA...................... 95* 110* Youngstown-Warren-Boardman, OH-PA..... 93* 99 See footnotes at end of table. (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Metropolitan Area(1) Professional Service and related Sacramento-Arden-Arcade-Truckee, CA-NV................................. 114* 112* Salinas, CA........................... 120* 123* San Antonio, TX....................... 93* 89* San Diego-Carlsbad-San Marcos, CA..... 107* 118* San Jose-San Francisco-Oakland, CA.... 119* 126* Seattle-Tacoma-Olympia, WA............ 106* 117* Springfield, MA....................... 110* 109* Springfield, MO....................... 85* 88* St. Louis, MO-IL...................... 100 98 Tallahassee, FL....................... 82* 95 Tampa-St. Petersburg-Clearwater, FL... 90* 94* Virginia Beach-Norfolk-Newport News, VA-NC................................. 91* 95* Visalia-Porterville, CA............... 103 104* Washington-Baltimore-Northern Virginia, DC-MD-VA-WV................. 110* 106* York-Hanover, PA...................... 98 96 Youngstown-Warren-Boardman, OH-PA..... 90* 93* See footnotes at end of table. (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Office and Metropolitan Area(1) Sales and administra- related tive support Sacramento-Arden-Arcade-Truckee, CA-NV................................. 108 106* Salinas, CA........................... 129* 108* San Antonio, TX....................... 86* 90* San Diego-Carlsbad-San Marcos, CA..... 103 105* San Jose-San Francisco-Oakland, CA.... 122* 120* Seattle-Tacoma-Olympia, WA............ 113* 105* Springfield, MA....................... 111* 108* Springfield, MO....................... 93* 87* St. Louis, MO-IL...................... 98 101 Tallahassee, FL....................... 91* 89* Tampa-St. Petersburg-Clearwater, FL... 100 96* Virginia Beach-Norfolk-Newport News, VA-NC................................. 95* 91* Visalia-Porterville, CA............... 102 96 Washington-Baltimore-Northern Virginia, DC-MD-VA-WV................. 108* 112* York-Hanover, PA...................... 90* 93* Youngstown-Warren-Boardman, OH-PA..... 87* 94* See footnotes at end of table. (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Construction Installation Metropolitan Area(1) and maintenance, extraction and repair Sacramento-Arden-Arcade-Truckee, CA-NV................................. 113* 110* Salinas, CA........................... 126* 124* San Antonio, TX....................... 100 99 San Diego-Carlsbad-San Marcos, CA..... 109* 109* San Jose-San Francisco-Oakland, CA.... 123* 117* Seattle-Tacoma-Olympia, WA............ 110* 106* Springfield, MA....................... 109* 99 Springfield, MO....................... 79* 86* St. Louis, MO-IL...................... 116* 112* Tallahassee, FL....................... 91* 84* Tampa-St. Petersburg-Clearwater, FL... 100 91* Virginia Beach-Norfolk-Newport News, VA-NC................................. 85* 93* Visalia-Porterville, CA............... 87* 96* Washington-Baltimore-Northern Virginia, DC-MD-VA-WV................. 101 114* York-Hanover, PA...................... 98 92* Youngstown-Warren-Boardman, OH-PA..... 90* 89* See footnotes at end of table. (Continued) (Average pay nationally for all occupations and for each occupational group shown = 100.) Transporta- Metropolitan Area(1) Production tion and material moving Sacramento-Arden-Arcade-Truckee, CA-NV................................. 121* 109* Salinas, CA........................... 93* 104* San Antonio, TX....................... 93* 91* San Diego-Carlsbad-San Marcos, CA..... 106* 101 San Jose-San Francisco-Oakland, CA.... 108* 109* Seattle-Tacoma-Olympia, WA............ 116* 110* Springfield, MA....................... 110* 114* Springfield, MO....................... 94* 98* St. Louis, MO-IL...................... 108* 110 Tallahassee, FL....................... 92* 94* Tampa-St. Petersburg-Clearwater, FL... 91* 97 Virginia Beach-Norfolk-Newport News, VA-NC................................. 89* 92* Visalia-Porterville, CA............... 103 107* Washington-Baltimore-Northern Virginia, DC-MD-VA-WV................. 105* 108* York-Hanover, PA...................... 96* 98 Youngstown-Warren-Boardman, OH-PA..... 94* 110* * The pay relative for this area is significantly different from the national average of all areas at the 10 percent level of significance. For additional details, see the Technical Note. 1 A metropolitan area can be a Metropolitan Statistical Area (MSA) or Combined Statistical Area (CSA) as defined by the Office of Management and Budget, December 2003.
Technical Note Pay relative controls and calculations Pay relatives control for differences among areas in occupational composition as well as establishment and occupational characteristics. Metropolitan areas often differ greatly in the composition of establishments and occupations that are available to the local workforce. For example, in Brownsville-Harlingen, Texas, the ratio of workers in the high-paying management, business, and financial occupational group to the number of workers in all occupations is under 6 percent, whereas nationally this ratio is nearly 10 percent.1 In addition to these factors, the NCS collects compensation data for metropolitan areas at different times during the year. Payroll reference dates differ between areas which makes direct comparisons between areas difficult. The pay relative approach controls for these differences to isolate the geographic effect on wages. To illustrate the importance of controlling for these effects, consider the following example. The average pay for construction and extraction workers in the New York-Newark-Bridgeport, NY-NJ-CT-PA metropolitan area is $33.14 and the average pay for construction and extraction workers in the United States is $20.91.2 A simple pay comparison can be calculated from the ratio of the two average pay levels, multiplied by 100 to express the comparison as a percentage. The pay comparison in the example is calculated as: ($33.14 ÷ $20.91) × 100 ≅ 158 This comparison does not control for differences between New York and the nation in the mix of occupations, industries, and other factors. A more accurate estimate of the geographic effect of wages in New York can be obtained by taking these differences into account. Controlling for differences in occupational composition, establishment and occupational characteristics, and the payroll reference date in New York relative to the nation as a whole, the pay relative for construction and extraction occupations in New York is 132. Sampling errors and statistical significance Because the NCS is a sample survey, data are subject to sampling error. For the data presented here, sampling error are differences that occur between the pay relatives estimated from the sample and the true pay relatives derived from the population. It is important to assess whether differences between each pay relative and the national average is likely to be the result of sampling error or of true differences in pay levels. To perform this assessment, a test of statistical significance is conducted. The test constructs a 90-percent confidence interval that assumes the given area’s true pay relative is equal to the national average. The confidence interval is constructed so that there is a 90-percent probability that the pay relative calculated from any one sample is contained within the confidence interval. If from a single sample a calculated pay relative falls within the confidence interval, then the pay relative is not statistically significant and the hypothesis that the true pay relative is equal to the national average is accepted. However, if the pay relative falls outside of the constructed confidence interval then the pay relative is statistically significant at the 10-percent level. The hypothesis that the given area’s pay relative is equal to the pay relative for the nation is rejected and one can conclude with reasonable confidence that the true pay relative is different from the national average. In addition to sampling error, pay relatives are subject to a variety of sources that can adversely influence the estimates. The NCS may be unable to obtain information for some establishments; there may be difficulties with survey definitions; respondents may be unable to provide correct information, or mistakes in recording or coding the data may occur. Such non-sampling error was not specifically measured. However, non-sampling error are expected to be minimal due to the extensive training of the field economists who gathered the survey data, computer edits of the data, and detailed data review. Survey methodology The National Compensation Survey (NCS) collects earnings and other data on employee compensation covering over 800 detailed occupations. Average occupational earnings from the NCS are published annually for 77 metropolitan areas and for the United States as a whole. This release provides data for the civilian economy, which includes the total private nonfarm economy excluding private households, and the public sector excluding the federal government. Beginning in 2006, the NCS implemented a number of significant survey changes including imputing for temporary non-response situations and benchmarking estimated employment. For more details on these changes, see James E. Smith and Robert W. Van Giezen, "Change Comes to the National Compensation Survey Locality Wage Bulletins," Compensation and Working Conditions Online, January 24, 2007 at http://www.bls.gov/opub/cwc/cm20070122ar01p1.htm. The NCS program collects data in U.S. Office of Management and Budget (OMB) defined geographic areas. With the collection of the 2008 data, the NCS is in its second year of a six-year transition from the June 1993 OMB area definitions to the December 2003 OMB area definitions. The area titles have been updated to reflect the new area definitions. For more information on the area definitions, see Jason Techonica, "New Area Sample Selected for the National Compensation Survey," Compensation and Working Conditions Online, April 25, 2005 at http://www.bls.gov/opub/cwc/cm20050318ar01p1.htm. Historical pay relatives data are available for the survey years 1992-1996, 1998, 2002, 2004-2007. There are several differences between the recent pay relatives and the pay relatives for earlier years, including different industry and occupation classification systems, varying methodology, and different survey designs. These differences limit comparability. The pay relatives since 2004 were calculated using the same industry and occupation classification systems, methodology, and survey design. Nonetheless, comparisons between the estimates for these years should be made only with caution. Pay relatives were estimated using a multivariate regression technique designed to control for interarea differences. This technique controls for the following ten characteristics: - Occupational type - Industry type - Work level - Full-time / part-time status - Time / incentive status - Union / nonunion status - Ownership type - Profit / non-profit status - Establishment employment - Payroll reference date Even accounting for the characteristics used in the current regression analysis, there is still significant wage variation across the areas. The variation is due to differences in wage determinants that were not included in the model. Examples of these determinants include price levels, environmental amenities such as a pleasant climate, and cultural amenities. The pay relative regression methodology introduces another type of error. Regression models are subject to specification error. The significance test does not specifically measure specification error. However, care was taken to minimize this form of error by an extensive search across specifications for the model that performs best in terms of predictive accuracy. For more details, see Maury B. Gittleman, "Pay Relatives for Metropolitan Areas in the U.S." Monthly Labor Review, March 2005, pp. 46-53, and Parastou Karen Shahpoori, "Pay Relatives for Major Metropolitan Areas," Compensation and Working Conditions, Spring 2003. Obtaining information Articles, bulletins, and other information from the National Compensation Survey may be obtained by calling (202) 691-6199, sending email to NCSinfo@bls.gov, or visiting the Internet site http://www.bls.gov/ncs. Information in this release will be made available to sensory impaired individuals upon request. Voice phone: (202) 691-5200; Federal Relay Service Number: 1-800-877-8339. 1 Data for this example are based on the May 2008 Occupational Employment and Wage Estimates, http://www.bls.gov/oes/current/oessrcma.htm. 2 Average pay for construction and extraction workers in New York and for the United States are based on wage estimates published in the New York-Newark-Bridgeport, NY-NJ-CT-PA National Compensation Survey, May 2008 and the forthcoming National Compensation Survey: Occupational Wages in the United States, 2008, http://www.bls.gov/ncs/ocs/compub.htm.
Last Modified Date: July 24, 2009