Wyoming Average Quarterly
Wages Using Wage Records
A Lesson in Averages
by: Carol Kjar, Statistical
Technician
"Interestingly, the average number of jobs per Social Security number rises in the fourth and first quarters (October through March), indicating that more people work more jobs in the winter months while the earnings per job decrease, on the average."
M
any of the charts and reports
presented in Wyoming Labor Force Trends use a data average. The average
(or in mathematical terms, the mean) shows us the central tendency of a group of numbers.
In other words, the average is the balance point of a set of numbers (data). Averages are
strongly influenced by values that are far from the point of balance and by the addition or
subtraction of numbers in the set. By finding the average of a set of numbers, one number
represents that set by showing where the numbers (data) are centered and allows clearer
comparisons to be made between several sets of numbers.
In the February 1999 issue of Trends,
Research & Planning (R&P) released wage record statistics
showing an increase in the number of jobs, total wages and Social Security numbers for
1997 through 1998.1 The general trend in wages
can be seen over a longer time span by using the wage record average quarterly data from
the first quarter of 1992 through the first quarter of 1999.
By law, employers in Wyoming submit their unemployment insurance (UI) reports to the Wyoming
Department of Employment on a quarterly basis. The reports are aggregated to form a
statistical database from which wage records are derived. Wage records contain a
listing of each individual employee’s Social Security number and his or her gross wages
for the quarter. Each wage record represents a job worked by an individual.
People who work more than one job appear among wage records more than one time, once for
each of their employers. Wage records are sorted to count the number of unique Social
Security numbers, giving an estimate of how many individual workers are listed. Dividing
the total number of jobs by the total number of individual workers indicates, on the
average, how many jobs are held by each person. Of course, not everyone holds multiple
jobs, but the average will give an indication of the general trend. The larger the
number, the more people there are holding multiple jobs.
To find the average quarterly wage, the total payroll for a quarter is divided by the
number of individuals working during that quarter. Some workers will earn more than
the average and some will earn less, but the average quarterly wage gives a general idea
of how much workers made during the quarter by showing the central tendency of the entire
list of wages.
The Figure shows the average quarterly wages and the average number
of jobs per Social Security number from the first quarter of 1992 (92Q1) through the first
quarter of 1999 (99Q1). It should be noted that the numbers for 98Q1 through 99Q1 are
preliminary and subject to change.
The Figure reveals the seasonal patterns of employment with the third quarter (July, August,
September) data of each year displaying the peak wage earnings. High paying construction jobs
and increased employment during tourist season and school summer vacations contribute to the
higher earnings and increased employment during this quarter. The lowest wages routinely
occur in the first quarter (January, February, March) when employment in the Services, Retail
Trade and Construction industries is lowest.2 Interestingly, the average
number of jobs per Social Security number rises in the fourth and first quarters (October
through March), indicating that more people work more jobs in the winter months while the
earnings per job decrease, on the average.
R&P staff are working on a publication about wage records, scheduled to be released in the
near future. It will go into detail about our wage records research, breaking the data into
sections that deal with industries, gender, age groups and more. Watch for the new publication
release announcement in a future issue of Trends.
1 Norman
Baron, "Wyoming Wage Record Summary Statistics Update,"
Wyoming Labor Force Trends, February 1999.
2 Mike Evans, "Which Types of Businesses Create Jobs for the
Wyoming Economy?," Wyoming Labor Force Trends,
September 1999.
Table of Contents | Labor Market Information | Wyoming Job Network | Send Us Mail
These pages designed by
Gayle C. Edlin.
Last modified on
by
Valerie A. Davis.