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BLS 02-42
FOR RELEASE:
Wednesday, April 24, 2002

AVERAGE ANNUAL PAY IN NEVADA, 2000

Annual pay in Nevada averaged $32,276 in 2000, increasing 3.4 percent over the year, according to the Bureau of Labor Statistics of the U.S. Department of Labor. Regional Commissioner Stanley P. Stephenson noted that Nevada's pay level trailed the national average ($35,296) but was slightly above that for the Mountain division1 ($32,031). (See table 1.)

Average pay in the Mountain division grew at a 6.4 percent pace in 2000 compared to 5.9 percent nationally. Within the eight-state division, growth in pay ranged from 8.7 percent in Colorado, third highest in the nation, to 3.4 percent in Nevada. Arizona and Idaho also recorded growth rates in the top 10, ranking fifth and ninth, respectively. Colorado at $37,167 was the sole state in the Mountain division, and one of only twelve states in the country, to record a pay level that exceeded the nationwide average. In the remaining states, annual pay ranged from $32,606 in Arizona to $24,264 in Montana, which had the lowest level in the nation as well as the division. (See table 1.)

Annual pay data are compiled from reports submitted by employers subject to State and federal Unemployment Insurance (UI) laws covering 129.9 million full- and part-time workers nationwide. Average annual pay is computed by dividing total annual payrolls of employees covered by UI programs by the average monthly number of these employees. (See Technical Note.) Pay differences among states reflect the varying composition of employment by occupation, industry, and hours of work, as well as other factors. Similarly, over-the-year pay changes may reflect shifts in these characteristics, as well as changes in the level of average pay.

Pay in industries

Overall, 88.6 percent of Nevada’s workforce was employed by the private sector. Annual pay for private industry workers (excludes those in government) in Nevada averaged $31,387 in 2000, $3,918 less than the national average of $35,305. (See chart 1.) Over the year, private sector pay in Nevada advanced 3.3 percent, considerably slower than the 6.2 percent increase nationwide. (See table 2.) Among the private industry divisions, the largest over-the-year percentage pay increase was in finance, insurance, and real estate at 5.6 percent followed by manufacturing at 5.0 percent. Mining continued to be the highest paid industry in the State at $56,713, while retail trade, which includes a high percentage of part-time workers, remained the lowest at $20,951. Statewide industry pay levels in the private sector were above their nationwide averages in three of the nine divisions—retail trade; construction; and agriculture, forestry, and fishing.

Average anuual pay in the United States and Nevada by private industry division, 2000

Services, Nevada’s largest industry division, accounted for almost half (47.9 percent) of all private sector jobs. At the national level, services also made up the largest share of the workforce but comprised just over one-third, or 34.3 percent, of the workforce. In Nevada, retail trade made up 19.4 percent of private sector employment, slightly lower than the 21.2 percent for the nation. (See chart 2.) Construction was the State’s third largest employer with 9.7 percent of all private industry workers. Nationally, manufacturing ranked third at 16.7 percent, more than three times larger than the 4.9 percent employed in Nevada.

Private sector employment in Nevada by industry division, 2000

Pay in metropolitan areas

Reno, one of two metropolitan areas2 in Nevada, led the State in pay averaging $32,747 in 2000, 81st highest among the 318 metropolitan areas nationwide. Annual pay in Las Vegas averaged $31,663 and ranked 103rd nationally. Both of these pay levels fell below the national average for all metropolitan areas of $37,010. (See table 3.)

The percentage increase in pay from 1999 to 2000 in both Reno and Las Vegas was slower than the 6.0 percent growth for all metropolitan areas in the United States. Reno’s pay increase, at 4.4 percent, was the 119th highest in the nation, and Las Vegas’ 3.0 percent gain ranked 243rd. Nationally, 274 of the 318 metropolitan areas nationwide experienced less than average growth in annual pay.

Pay in large counties

Nevada had two large counties, Clark and Washoe, with employment levels of 75,000 or more. In Washoe County, annual pay averaged $32,747 in 2000, growing 4.4 percent over the year, and in Clark County, pay averaged $32,131, an increase of 3.4 percent. Including the counties of Clark and Washoe, 210 of the nation’s 315 largest counties had pay levels below the national average of $35,296 in 2000. (See table 4.)

1The Mountain division referenced in this release corresponds to the Census definition and is comprised of eight states: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wyoming.
2The general concept of a metropolitan area is that of a core area containing a large population nucleus, together with adjacent communities that have a high degree of economic and social integration within that core.  See Technical Note for criteria used in determining a metropolitan area.

NOTE

Annual average pay data for 2000 are preliminary and subject to revision.

Also, average annual pay by industry in this release are based on the 1987 version of the Standard Industrial Classification (SIC) system. The data for 2001 will be based on the North American Industry Classification System (NAICS). Due to differences in NAICS and SIC structures, data for 2001 will not be comparable to the SIC-based data for earlier years. NAICS focuses on how products and services are created, as opposed to the SIC focus on what is produced. This approach yields significantly different industry groupings than those produced by the SIC approach.

Users interested in more information about NAICS can access the Bureau of the Census Web site at http://www.census.gov/epcd/www/naics.html. In addition, the BLS has published two articles on NAICS in the December 2001 Monthly Labor Review ("Implementing the NAICS at BLS" and "A first look at employment and wages using NAICS") which can be accessed on line at http://www.bls.gov/opub/mlr/mlrhome.htm.

TECHNICAL NOTE

Background

These data are the product of a federal-state cooperative program in which State Employment Security Agencies (SESAs) prepare summaries of employment and total pay of workers covered by Unemployment Insurance legislation. The summaries are a by-product of the administration of state unemployment insurance (UI) programs that require most employers to pay quarterly taxes based on the employment and wages of workers covered by UI.

Coverage

Employment and wage data for workers covered by state UI laws and for federal civilian workers covered by the Unemployment Compensation for Federal Employees (UCFE) program are compiled from quarterly contribution reports submitted to the SESAs by employers. In addition to the quarterly contribution reports, employers who operate multiple establishments within a state complete a questionnaire, called the "Multiple Worksite Report," which provides detailed information on the location and industry of each of their establishments. Average annual pay data are derived from summaries of employment and wages submitted by states to the Bureau of Labor Statistics. These reports are based on place of employment rather than place of residence.

UI and UCFE coverage is broad and basically comparable from state to state. In 2000, UI and UCFE programs covered workers in 129.9 million jobs. The estimated 124.9 million workers in these jobs (after adjustment for multiple jobholders) represent 99 percent of wage and salary civilian employment. Covered workers received $4.586 trillion in pay, representing 96.2 percent of the wage and salary component of personal income and 46.0 percent of the gross domestic product.

Major exclusions from UI coverage during 2000 included most agricultural workers on small farms, all members of the Armed Forces, elected officials in most states, most employees of railroads, some domestic workers, most student workers at schools, and employees of certain small nonprofit organizations.

Concepts and methodology

Average annual pay is computed by dividing total annual pay of employees covered by UI programs by the average monthly number of these employees. Included in the annual payroll data are bonuses, the cash value of meals and lodging when supplied, tips and other gratuities, and, in some states, employer contributions to certain deferred compensation plans such as 401(k) plans and stock options. Monthly employment is based on the number of workers who worked during or received pay for the pay period including the 12th of the month. With few exceptions, all employees of covered firms are reported, including production and sales workers, corporation officials, executives, supervisory personnel, and clerical workers. Workers on paid vacations and part-time workers also are included. Percentage changes in average annual pay for 2000 were computed using final 1999 data as a base.

The ratio of full-time to part-time workers as well as the number of individuals in high-paying and low-paying occupations affects average annual pay. When comparing average annual pay levels between industries and/or states, these factors should be taken into consideration. Annual pay data only approximate annual earnings, because an individual may not be employed by the same employer all year or may work for more than one employer. Year-to-year changes in average annual pay can result from a change in the proportion of employment in high- and low- wage jobs, as well as from changes in the level of average annual pay.

Data in table 2 are presented for the private sector only and exclude government workers. Average annual pay for employment in the private sector is presented by industry division as defined in the 1987 Standard Industrial Classification Manual.

Each year, a relatively small number of employers provide insufficient information on the nature of their businesses to assign a specific SIC classification and therefore can not be classified by industry division. The wages for these nonclassifiable establishments, along with data for the agricultural division, are not shown separately, but are included in the averages for state and national totals.

The Office of Management and Budget (OMB) defines metropolitan areas for use in federal statistical activities and updates these definitions as needed each summer—data in this release use criteria established in definitions issued June 30, 1999 (OMB Bulletin No. 94-04). The 318 metropolitan areas in the United States are a compilation of a set of areas classified as Metropolitan Statistical Areas (MSAs), Primary Metropolitan Statistical Areas (PMSAs) and Consolidated Metropolitan Statistical Areas (CMSAs). Generally speaking, a MSA consists of one or more counties and meets specified size criteria—either it contains a city of at least 50,000 inhabitants, or it contains an urbanized area of at least 50,000 inhabitants, and has a total population of at least 100,000 (75,000 in New England). An MSA may contain more than one city of 50,000 population and may cross state lines. A CMSA is a metropolitan area that has a population of at least 1 million and has been divided into two or more PMSAs. The CMSA comprises the same geographic area as its constituent PMSAs which are loosely defined as free-standing areas that have a population of at least 100,000.

County definitions are assigned according to Federal Information Processing Standards Publications (FIPS PUBS) as issued by the National Institute of Standards and Technology, after approval by the Secretary of Commerce pursuant to Section 5131 of the Information Technology Management Reform Act of 1996 and the Computer Security Act of 1987, Public Law 104-106. Areas shown as counties include areas designated as independent cities in some jurisdictions, and, in Alaska, those designated as census areas where counties have not been created. County data are also presented for New England states for comparative purposes even though townships are the more common designation used in New England (and New Jersey).

Additional statistics and other information

Additional average annual pay data (or Quarterly Census of Employment and Wages data) is available on the BLS Internet site at http://www.bls.gov/cew/home.htm. Data can be accessed in two ways, through Create Customized Tables (multiple screens), which allows quick access to particular items or via the special request FTP service, which allows access to extensive collection of flat text files. The San Francisco Information Office can provide assistance accessing these files by calling (415) 975-4350.

This news release, along with other BLS statistics and information, is available via the Internet at the BLS World Wide Web site http://www.bls.gov/ro9/ro9/ro9news.htm

BLS issues an annual report that provides data from state UI and UCFE programs. The comprehensive bulletin, Employment and Wages, Annual Averages, 2000, features information by detailed industry on establishments, employment, and wages for the nation and individually for each state. The report is available for sale from the Bureau of Labor Statistics Publications Sales Center, P.O. Box 2145, Chicago, Illinois 60690. Telephone orders using a credit card (MasterCard, VISA, Discover/NOVUS) or Government Printing Office Deposit Account are accepted at (312) 353-1880 from 8 a.m. to 3 p.m. central time.

For personal assistance or further information on Annual Average Pay data as well as other Bureau programs, contact the San Francisco Information Office at (415) 975-4350 from 9:00 a.m. to 11:30 a.m. and 1:30 p.m to 4:00 p.m. pacific time.

State average annual pay for 1999 and 2000 and percent change in pay for all covered workers

State and industry average annual pay in the Mountain States for 1999 and 2000 and percent change in pay for all covered workers

Average annual pay in 1999 and 2000 for all covered workers in metropolitan area in the United States and Nevada

Employment and average annual pay in the United States and the largest counties in Nevada for all covered workers, 2000

 

Last Modified Date: January 6, 2004

 

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