In This Release Is Embargoed — 2002-08-16

Real average weekly earnings declined by 0.8 percent from June to July after seasonal adjustment, according to preliminary data released today by the Bureau of Labor Statistics of the U.S. Department of Labor. A 0.9 percent decline in average weekly hours and a 0.2 percent increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) were partly offset by a 0.3 percent rise in average hourly earnings. 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 2.6 percent, seasonally adjusted, from July 2001 to July 2002. After deflation by the CPI-W, average weekly earnings rose by 1.3 percent.