In This Release Is Embargoed — 2002-02-20

Real average weekly earnings fell by 0.5 percent from December to January after seasonal adjustment, according to preliminary data released today by the Bureau of Labor Statistics of the U.S. Department of Labor. This decline was due to a 0.3 percent drop in average weekly hours and a 0.2 increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Average hourly earnings were unchanged. 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 2.8 percent, seasonally adjusted, from January 2001 to January 2002. After deflation by the CPI-W, average weekly earnings rose by 1.9 percent.