Earnings and Benefits

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EARNINGS AND BENEFITS

EARNINGS

The federal government measures both the mean earnings (average) and the median earnings (one-half earn more than this figure, and one-half earn less than this figure) of the nation's workers. Individual income is the total amount brought in by an individual worker, and household income is the total amount earned by all members of a family, including earnings and money received from interest, pensions, and other sources.

Full-Time, Year-Round Workers

In 2006, according to statistics reported by Bruce H. Webster Jr. and Alemayehu Bishaw of the U.S. Census Bureau in Income, Earnings, and Poverty Data from the 2006 American Community Survey (August 2007, http://www.census2010.gov/prod/2007pubs/acs08.pdf), the median earnings for full-time, year-round workers were $42,210 for men and $32,649 for women; women earned just 77.3% of what men earned. Asian workers earned the highest median salaries in 2006. Asian men earned a median of $50,159; Asian women earned a median of $38,613, 77% of what Asian men earned. Non-Hispanic white men earned a median of $47,814; non-Hispanic white women earned a median of $35,151, 73.5% of what non-Hispanic white men earned. African-American men earned a median of $34,480 in 2006; African-American women earned $30,398, 88.2% of what African-American men earned. Hispanics earned the lowest median salaries in 2006, but Hispanic women were closer in percentage to what Hispanic men earned than women of other races and ethnicities were to corresponding males of their same race or ethnicity. Hispanic men earned a median of $27,490; Hispanic women earned $24,738, 90% of what their male peers earned.

According to data reported by the U.S. Census Bureau in Historical Income Tables (March 2007, http://www.census.gov/hhes/www/income/histinc/p36ar.html), the median earnings of men aged fifteen and over working full-time, year-round, when converted to year 2005 dollars, have changed very little for more than three decades. In 1972 men had a median income equal to $42,617 in 2005 dollars. Wages dropped to a low of $40,958 in 1995, but had risen again to a high of $44,262 in 2001 before dropping again to below the 1972 level, at $42,188, in 2005. Women's earnings, on the other hand, have substantially increased. In constant 2005 dollars, women who worked full-time, year-round earned a median of only $24,479 in 1972. By 2005 full-time female workers earned a median of $33,256, down from a high of $33,619 in 2002.

Another way to examine incomes is to look at household incomes. Households in which two or more adults are working tend to have higher incomes than do single-adult households. In 2006 the median household income was $48,201. (See Table 6.1.) Married-couple households had a higher median income ($69,716) than did nonfamily households ($29,083). Family households headed by a single householder had substantially lower incomes than did married-couple households, especially when headed by a female. Family households headed by a single male had a median income of $47,078, and family households headed by a single female had a median income of only $31,818.

The race and ethnicity of a householder affected median household income as well. Asian householders had a substantially higher median income than any other group in 2006, at $64,238. Non-Hispanic white households had a median income of $52,423, Hispanic households had a median income of $37,781, and African-American households had a median income of just $31,969. (See Table 6.1.) Households of all races and ethnicities saw a slight rise in median incomes from 2005 to 2006 except for non-Hispanic white households, which experienced a slight decline in median income in 2006.

TABLE 6.1
Income and earnings by selected characteristics, 2006

[Income in 2006 dollars. Households and people as of March of the following year.]
2006
Median income (dollars)
CharacteristicNumber (thousands)Estimate
* Federal surveys now give respondents the option of reporting more than one race. Therefore, two basic ways of defining a race group are possible. A group such as Asian may be defined as those who reported Asian and no other race (the race-alone or single-race concept) or as those who reported Asian regardless of whether they also reported another race (the race-alone-or-in-combination concept). This table shows data using the first approach (race alone). The use of the single-race population does not imply that it is the preferred method of presenting or analyzing data. The Census Bureau uses a variety of approaches.
About 2.6 percent of people reported more than one race in Census 2000. Data for American Indians and Alaska Natives, Native Hawaiians and other Pacific Islanders, and those reporting two or more races are not shown separately in this table.
Adapted from Carmen DeNavas-Walt, Bernadette D. Proctor, and Jessica Smith, Table 1. Income and Earnings Summary Measures by Selected Characteristics: 2005 and 2006, in Income, Poverty, and Health Insurance Coverage in the United States: 2006, U.S. Census Bureau, August 2007, http://www.census.gov/prod/2007pubs/p60-233.pdf (accessed February 18, 2008)
Households
All households16,01148,201
Type of household
Family households78,42559,894
Married-couple58,94569,716
Female householder, no husband present14,41631,818
Male householder, no wife present5,06347,078
Nonfamily households37,58729,083
Female householder20,24923,876
Male householder17,33835,614
Race* and Hispanic origin of householder
White94,70550,673
White, not Hispanic82,67552,423
Black14,35431,969
Asian4,45464,238
Hispanic origin (any race)12,97337,781
Age of householder
Under 65 years92,28254,726
15 to 24 years6,66230,937
25 to 34 years19,43549,164
35 to 44 years22,77960,405
45 to 54 years24,14064,874
55 to 64 years19,26654,592
65 years and older23,72927,798
Nativity of householder
Native100,60349,074
Foreign born15,40843,943
Naturalized citizen7,21051,440
Not a citizen8,19839,497
Earnings of full-time, year-round workers
Men with earnings63,05542,261
Women with earnings44,66332,515

Production and Nonsupervisory Earnings

According to data from the U.S. Bureau of Labor Statistics (BLS) in Current Population Survey (2008, ftp://ftp.bls.gov/pub/suppl/empsit.ceseeb2.txt), production workers and workers not in management positions on private, nonfarm payrolls worked an average of 33.8 hours per week in 2007 and earned a mean salary of $17.42 per hour. Hourly salaries and hours worked varied by industry. Workers employed in professional and business service occupations worked an average of 34.8 hours per week at an hourly wage of $20.13. People employed in the private service-providing industry sector worked an average of 32.4 hours and earned less than the overall average$17.10 per hour. Those in leisure and hospitality worked fewer hours per week (25.5) and earned only $10.41 per hour, well below the mean for all workers; the combination of their low wages and fewer hours meant that these workers earned much less than workers in other industries. Natural resources and mining workers and construction workers earned more than the total average earnings, bringing in, on average, $20.96 and $20.95 per hour, respectively. Workers in both categories also worked longer hours per week than the overall average (45.9 hours per week for those employed in natural resources and mining industries, and 39 for construction).

Occupations

Another way to look at earnings is to consider specific occupations. Someone working in a specific occupation may work in one of several industries. For example, a photographer might work at a university (in the education and health services industry), or in a photography studio (in the professional and business services industry). A janitor might work in a hospital (in the education and health services industry), in a manufacturing plant (in the manufacturing industry), or in a hotel (in the leisure and hospitality industry). However, the training and work experience requirements for the position, regardless of the industry in which it is located, are the same.

As reported by the BLS in Employment and Earnings (January 2008, http://www.bls.gov/cps/cpsaat39.pdf), full-time wage and salary workers earned a median of $695 per week in 2007, with men earning a median of $766 and women earning a median of $614. (See Table 6.2.) The highest paid occupations tended to be in management, business, and financial occupations and engineering occupations. These occupations almost always require advanced degrees. Chief executives, for example, earned the highest median weekly earnings of $1,882. Engineering managers ($1,713) and computer and information systems managers ($1,553) were also highly paid. All engineers made high median weekly earnings, especially aerospace engineers ($1,557), electrical and electronic engineers ($1,454), and chemical engineers ($1,410). Lawyers and judges also made high median weekly salaries ($1,591 and $1,728, respectively), as did pharmacists ($1,838) and physicians and surgeons ($1,475).

The lowest paid occupations were concentrated in the service occupations, particularly food preparation and service related occupations. These occupations require little, if any, education or training. In 2007 food preparation workers made a median of only $349 per week, counter attendants,

TABLE 6.2
Median weekly earnings of full-time wage and salary workers, by detailed occupation and sex, 2007

[Numbers in thousands; earnings in dollars.]
2007
Both sexesMenWomen
OccupationNumber of workersMedian weekly earningsNumber of workersMedian weekly earningsNumber of workersMedian weekly earnings
Total, 16 years and over107,339$69560,298$76647,041$614
Management, professional, and related Occupations39,14799619,2221,18719,924858
Management, business, and financial operations occupations15,9771,0808,6841,2617,293908
Management occupations11,0091,1616,5701,3374,438963
Chief executives1,0431,8827761,9182671,536
General and operations managers8931,2216441,332249987
Advertising and promotions managers6996529*41*
Marketing and sales managers7841,3194881,5112961,028
Public relations managers601,14529*30*
Administrative services managers971,057691,06828*
Computer and information systems managers4441,5533211,5961231,363
Financial managers1,0701,0784951,452575909
Human resources managers2381,208721,5811661,073
Industrial production managers2531,2162111,24441*
Purchasing managers1541,240901,374641,054
Transportation, storage, and distribution managers25284520883643*
Farm, ranch, and other agricultural managers867136769319*
Construction managers5461,1434971,15548*
Education administrators7131,1312591,371454960
Engineering managers1161,7131071,7489*
Food service managers646645338731308584
Lodging managers10469648*56618
Medical and health services managers4481,1361221,4143261,063
Property, real estate, and community association managers338787140970197732
Social and community service managers2699621051,063164913
Managers, all other2,2961,1801,3991,3078971,006
Business and financial operations occupations4,9689412,1141,1312,854832
Wholesale and retail buyers, except farm products1577507779481737
Purchasing agents, except wholesale, retail, and farm products260854112992148753
Claims adjusters, appraisers, examiners, and investigators270809106898164743
Compliance officers, except agriculture, construction, health and
safety, and transportation125936621,12463747
Cost estimators1041,034891,06316*
Human resources, training, and labor relations specialists7318752151,037517811
Logisticians5399030*22*
Management analysts3521,2001861,3881661,083
Other business operations specialists195834591,026136772
Accountants and auditors1,5199685771,186942858
Appraisers and assessors of real estate6796045*22*
Budget analysts531,12420*33*
Financial analysts761,232511,23825*
Personal financial advisors2601,2041711,377891,047
Insurance underwriters9197926*65865
Loan counselors and officers4089381891,129219844
Tax examiners, collectors, and revenue agents5983726*33*
Tax preparers5276121*32*
Professional and related occupations23,17095110,5381,14812,632835
Computer and mathematical occupations3,1171,2292,3261,2947901,047
Computer scientists and systems analysts7121,1735111,2432011,041
Computer programmers4851,2323611,2681241,074
Computer software engineers8721,4556941,5091781,318
Computer support specialists27387720090573764
Database administrators1011,345641,40037*
Network and computer systems administrators2051,1801781,20427*
Network systems and data communications analysts3281,0392371,18191853
Operations research analysts851,18247*38*

cafeteria, food concession, and coffee shop workers made only $305 per week, waiters made $380 per week, dishwashers made $316 per week, and hosts and hostesses in restaurants made a median of $366 per week. (See Table 6.2.) Child care workers earned only $368 per week and personal and home care aides made just $380 per week. Agricultural workers were also paid very little, earning a median of $352 per week.

Although those working in managerial and professional specialties tended to earn the highest wages in 2007 and those in service occupations tended to earn the lowest wages, within each occupational grouping, many categories earned significantly more or less than the median wage. For example, among managerial occupations, chief executives had the highest weekly wages ($1,882), while lodging managers ($696) and food service managers ($645) earned

TABLE 6.2
Median weekly earnings of full-time wage and salary workers, by detailed occupation and sex, 2007

[Numbers in thousands; earnings in dollars.]
2007
Both sexesMenWomen
OccupationNumber of workersMedian weekly earningsNumber of workersMedian weekly earningsNumber of workersMedian weekly earnings
Architecture and engineering occupations2,633$1,2132,249$1,258384$981
Architects, except naval1601,1511201,29640*
Aerospace engineers1271,5571141,63713*
Chemical engineers721,410541,49518*
Civil engineers3301,3372951,35835*
Computer hardware engineers661,325631,3523*
Electrical and electronics engineers3251,4542921,48332*
Industrial engineers, including health and safety1631,2231351,25028*
Mechanical engineers2811,3542591,34922*
Engineers, all other3101,3502751,37335*
Drafters16182312688535*
Engineering technicians, except drafters40590231595890781
Surveying and mapping technicians75748687507*
Life, physical, and social science occupations1,1521,0536831,151469939
Biological scientists811,00446*34*
Medical scientists1451,098781,37466856
Chemists and materials scientists1201,149671,35453980
Environmental scientists and geoscientists781,080581,15920*
Physical scientists, all other1201,371781,53141*
Market and survey researchers1221,062541,160681,035
Psychologists1001,17038*631,152
Chemical technicians5778537*21*
Other life, physical, and social science technicians1177497683341*
Community and social services occupations1,8937557768071,117720
Counselors577760202833375724
Social workers587757112764475754
Miscellaneous community and social service specialists272680103788169636
Clergy35979731383246*
Religious workers, all other6266830*32*
Legal occupations1,1671,1485051,579663930
Lawyers6241,5913931,7832311,381
Judges, magistrates, and other judicial workers671,72841*26*
Paralegals and legal assistants28579734*251789
Miscellaneous legal support workers19272237*155662
Education, training, and library occupations6,5008411,8101,0074,690784
Postsecondary teachers8601,1314911,239370962
Preschool and kindergarten teachers488567151473561
Elementary and middle school teachers2,5958635149382,081847
Secondary school teachers1,0289444711,001558900
Special education teachers32388158860265886
Other teachers and instructors335766147987188685
Librarians16986135*134846
Teacher assistants60041047*553406
Arts, design, entertainment, sports, and media occupations1,568829879920689732
Artists and related workers7895347*31*
Designers553776278894275697
Producers and directors931,0086498829*
Athletes, coaches, umpires, and related workers1197739479825*
News analysts, reporters and correspondents6394336*27*
Public relations specialists11085139*70804
Editors1349317597959804
Writers and authors8099934*46*
Broadcast and sound engineering technicians and radio operators708646089310*
Photographers6166035*26*

the least. (See Table 6.2.) People working in sales and office occupations earned a median weekly wage of $598, less than the median earnings of all workers, but considerable variability existed. Sales representatives of securities, commodities, and financial services earned far more than others ($1,128). On the other hand, cashiers ($356), telemarketers ($407), and door-to-door sales workers and news and street vendors ($464) earned considerably below the median weekly wage for all workers in sales and office occupations. Among office workers, tellers ($455) and stock clerks ($445) earned particularly low wages, while postal mail carriers ($896) earned relatively high wages.

The manufacturing industry is projected to lose jobs between 2006 and 2016, and considerable variability existed in the median wages of those working in production occupations. Although the median weekly wage of all workers in production was $581 in 2007, first-line

TABLE 6.2
Median weekly earnings of full-time wage and salary workers, by detailed occupation and sex, 2007

[Numbers in thousands; earnings in dollars.]
2007
Both sexesMenWomen
OccupationNumber of workersMedian weekly earningsNumber of workersMedian weekly earningsNumber of workersMedian weekly earnings
Healthcare practitioner and technical occupations5,140$9201,310$1,1563,830$875
Dietitians and nutritionists767346*70720
Pharmacists1721,838841,887871,603
Physicians and surgeons6111,4754131,7961971,062
Physician assistants711,21122*48*
Registered nurses1,9659841921,0981,773976
Occupational therapists511,09911*40*
Physical therapists1391,143601,247791,096
Respiratory therapists7789627*50881
Speech-language pathologists841,0372*821,039
Therapists, all other7373021*53729
Clinical laboratory technologists and technicians270844681,049201803
Dental hygienists619461*60949
Diagnostic related technologists and technicians226916831,050144845
Emergency medical technicians and paramedics1297049575134*
Health diagnosing and treating practitioner support technicians34157968687273538
Licensed practical and licensed vocational nurses42266830*392664
Medical records and health information technicians725074*68509
Miscellaneous health technologists and technicians9968833*66681
Service occupations14,7164547,3715157,345406
Healthcare support occupations2,1874542615221,926447
Nursing, psychiatric, and home health aides1,3444231705001,174416
Dental assistants16950814*155508
Medical assistants and other healthcare support occupations58949058575531487
Protective service occupations2,7367192,175754560588
First-line supervisors/managers of police and detectives1241,0671051,08420*
First-line supervisors/managers of fire fighting and prevention work591,197531,1196*
Supervisors, protective service workers, all other917586887623*
Fire fighters26690125291914*
Bailiffs, correctional officers, and jailers437648304686132578
Detectives and criminal investigators1341,0661041,12130*
Police and sheriff's patrol officers65589156890786791
Private detectives and investigators6469646*17*
Security guards and gaming surveillance officers750510579524172465
Lifeguards and other protective service workers5841029*29*
Food preparation and serving related occupations4,1073852,0704032,037363
Chefs and head cooks29051823653553482
First-line supervisors/managers of food preparation and serving workers449491191586258423
Cooks1,263365815377448341
Food preparation workers322349124367198335
Bartenders212479108551104404
Combined food preparation and serving workers, including fast food14534046*99358
Counter attendants, cafeteria, food concession, and coffee shop9130536*55299
Waiters and waitresses865380274415592360
Food servers, nonrestaurant9541529*67401
Dining room and cafeteria attendants and bartender helpers1563568937067345
Dishwashers15031611131438*
Hosts and hostesses, restaurant, lounge, and coffee shop633667*56363

supervisors made quite a bit more, with a median of $824 per week. (See Table 6.2.) Computer control programmers and operators ($780) and tool and die makers ($918) also made fairly high median weekly wages. On the other hand, pressers of textiles, garment, and related materials made among the lowest wages of all workers, at $344 per week. Sewing machine operators ($361) and laundry and dry-cleaning workers ($380) also made very low median weekly wages. See the BLS publication Occupational Outlook Handbook (http://www.bls.gov/oco/home.htm) for detailed descriptions of each job.

Starting Salaries for New College Graduates

The National Association of Colleges and Employers (NACE) reported in Salary Survey (September 12, 2007, http://www.naceweb.org/press/display.asp?year=2007&prid=264)

TABLE 6.2
Median weekly earnings of full-time wage and salary workers, by detailed occupation and sex, 2007

[Numbers in thousands; earnings in dollars.]
2007
Both sexesMenWomen
OccupationNumber of workersMedian weekly earningsNumber of workersMedian weekly earningsNumber of workersMedian weekly earnings
Building and grounds cleaning and maintenance occupations3,520$4222,290$4721,230$376
First-line supervisors/managers of housekeeping and janitorial work18058612664654481
First-line supervisors/managers of landscaping, lawn service, and groundskeeping workers105718997326*
Janitors and building cleaners1,4444341,028475416388
Maids and housekeeping cleaners849366132439717357
Pest control workers68516655183*
Grounds maintenance workers87442084042134*
Personal care and service occupations2,1664345745781,593402
First-line supervisors/managers of gaming workers977286580532*
First-line supervisors/managers of personal service workers5060520*30*
Gaming services workers886275165536*
Miscellaneous entertainment attendants and related workers6241637*26*
Hairdressers, hairstylists, and cosmetologists30942531*278409
Miscellaneous personal appearance workers12942931*98402
Baggage porters, bellhops, and concierges5352244*9*
Transportation attendants9659525*71557
Child care workers44536838*408360
Personal and home care aides43338055434379373
Recreation and fitness workers1645236862696513
Personal care and service workers, all other5148924*28*
Sales and office occupations25,7025989,72571415,976550
Sales and related occupations10,4486435,7737914,675493
First-line supervisors/managers of retail sales workers2,3526471,3497461,004538
First-line supervisors/managers of non-retail sales workers865928587990278768
Cashiers1,4593563854091,074344
Counter and rental clerks955045056745*
Parts salespersons12259810163821*
Retail salespersons2,0345131,193638841409
Advertising sales agents18574174900110683
Insurance sales agents357747168959189644
Securities, commodities, and financial services sales agents3071,1282081,2431001,031
Travel agents7964918*60670
Sales representatives, services, all other485854321939164713
Sales representatives, wholesale and manufacturing1,228933900976327784
Real estate brokers and sales agents5048512411,027263701
Telemarketers1104075042260391
Door-to-door sales workers, news and street vendors, and related workers5546426*29*
Sales and related workers, all other1527366285191682
Office and administrative support occupations15,2535813,95261911,301570
First-line supervisors/managers of office and administrative support1,396711406803990675
Bill and account collectors19053772586118521
Billing and posting clerks and machine operators36556039*327560
Bookkeeping, accounting, and auditing clerks964606105666859601
Payroll and timekeeping clerks15665214*142636
Tellers34245537*304457
Court, municipal, and license clerks9262317*74626
Customer service representatives1,5705414856081,085521
Eligibility interviewers, government programs6866114*54619
File clerks27952557574222519
Hotel, motel, and resort desk clerks9740633*64396
Interviewers, except eligibility and loan10756017*90550
Loan interviewers and clerks12263919*103633
Order clerks9554227*68529
Receptionists and information clerks1,01948279503940480

that starting salaries offered to new college graduates had increased over the previous year. The $53,051 average offer to computer science majors in 2007 represented a 4.5% increase over the 2006 average. Economics graduates had average salary offers of $47,782, while finance graduates received average offers of $46,442. Management information systems graduates received average offers of $47,407, up 4.7%

TABLE 6.2
Median weekly earnings of full-time wage and salary workers, by detailed occupation and sex, 2007

[Numbers in thousands; earnings in dollars.]
2007
Both sexesMenWomen
OccupationNumber of workersMedian weekly earningsNumber of workersMedian weekly earningsNumber of workersMedian weekly earnings
Reservation and transportation ticket agents and travel clerks130$56459$56271$565
Information and record clerks, all other875977*80586
Couriers and messengers19170716772024*
Dispatchers265602122649143551
Postal service clerks1518317581276850
Postal service mail carriers315896209929105799
Postal service mail sorters, processors, and processing machine operators8183245*36*
Production, planning, and expediting clerks240746112885128658
Shipping, receiving, and traffic clerks468508318514150500
Stock clerks and order fillers1,067445684448383441
Weighers, measurers, checkers, and samplers, recordkeeping5351324*30*
Secretaries and administrative assistants2,668599906942,578597
Computer operators1455957462871562
Data entry keyers38151980511302521
Word processors and typists18058516*164586
Insurance claims and policy processing clerks24657132*214559
Mail clerks and mail machine operators, except postal service1015165050951523
Office clerks, general748556123584625550
Office and administrative support workers, all other490650125719366634
Natural resources, construction, and maintenance occupations12,48667012,028674457539
Farming, fishing, and forestry occupations739372601382138348
Graders and sorters, agricultural products7039825*45*
Miscellaneous agricultural workers54635246135786332
Logging workers5947158469*
Construction and extraction occupations7,2276467,071648156573
First-line supervisors/managers of construction trades and extraction workers67890166390615*
Brickmasons, blockmasons, and stonemasons1706091656084*
Carpenters1,1826151,16261520*
Carpet, floor, and tile installers and finishers1535111485155*
Cement masons, concrete finishers, and terrazzo workers86527835303*
Construction laborers1,3745141,35151424*
Operating engineers and other construction equipment operators37676536477212*
Drywall installers, ceiling tile installers, and tapers18951117950910*
Electricians77780576480414*
Painters, construction and maintenance43551542051515*
Pipelayers, plumbers, pipefitters, and steamfitters5847215797205*
Plasterers and stucco masons6351363513
Roofers1905501885531*
Sheet metal workers1237901187866*
Structural iron and steel workers7187070867
Helpers, construction trades91434894322*
Construction and building inspectors92906839069*
Highway maintenance workers1026211026231*
Mining machine operators59954579611*
Other extraction workers57777567691*
Installation, maintenance, and repair occupations4,5207494,357750163726
First-line supervisors/managers of mechanics, installers, and repairers32496030696118*
Computer, automated teller, and office machine repairers25175121777734*
Radio and telecommunications equipment installers and repairers18292715792325*
Security and fire alarm systems installers5973959739
Aircraft mechanics and service technicians1288891268952*

from the previous year, while marketing graduates' average offer of $39,269 was 5.6% higher than the year before.

NACE further indicated that almost all disciplines in engineering had increases in their average salaries in 2007. Chemical engineers received average starting salary offers of $59,218, up 5.2% from the year before. Civil engineers received average offers of $48,998, up 6.3% from 2006. Electrical engineers received average starting offers of $55,333, up 3.8% from the previous year. Mechanical engineering graduates received starting offers of $54,057 on average, up 4.3% from the previous year.

TABLE 6.2
Median weekly earnings of full-time wage and salary workers, by detailed occupation and sex, 2007

[Numbers in thousands; earnings in dollars.]
2007
Both sexesMenWomen
OccupationNumber of workersMedian weekly earningsNumber of workersMedian weekly earningsNumber of workersMedian weekly earnings
Automotive service technicians and mechanics6706556676563*
Bus and truck mechanics and diesel engine specialists3326983286974*
Heavy vehicle and mobile equipment service technicians and mechanics2268032248022*
Miscellaneous vehicle and mobile equipment mechanics, installers, and repairers7050870506
Heating, air conditioning, and refrigeration mechanics and installers3457283427293*
Industrial and refractory machinery mechanics39379838179812*
Maintenance and repair workers, general44469443269412*
Maintenance workers, machinery5370052703
Millwrights74897739021*
Electrical power-line installers and repairers981,008981,0071*
Telecommunications line installers and repairers21284320184911*
Coin, vending, and amusement machine servicers and repairers5068543*7*
Other installation, maintenance, and repair workers13461812462010*
Production, transportation, and material moving occupations15,28957711,9516163,338437
Production occupations8,3895815,9926412,396443
First-line supervisors/managers of production and operating workers876824726864150615
Electrical, electronics, and electromechanical assemblers20048886543114447
Miscellaneous assemblers and fabricators951524588587362460
Bakers1344336549869404
Butchers and other meat, poultry, and fish processing workers24049518355857406
Food batchmakers7449333*41*
Computer control programmers and operators55780517985*
Cutting, punching, and press machine setters, operators, and tenders12056310157719*
Machinists40670038470622*
Molders and molding machine setters, operators, and tenders, metal735806161812*
Tool and die makers75918729233*
Welding, soldering, and brazing workers53660749961837*
Metalworkers and plastic workers, all other42255129958812348
Prepress technicians and workers5153825*26*
Printing machine operators18061315365726*
Laundry and dry-cleaning workers1763807849698340
Pressers, textile, garment, and related materials5034417*33
Sewing machine operators22636147*179359
Tailors, dressmakers, and sewers5445320*34*
Cabinetmakers and bench carpenters67598616076*
Sawing machine setters, operators, and tenders, wood5448349*5*
Stationary engineers and boiler operators88752867571*
Water and liquid waste treatment plant and system operators74722697315*
Crushing, grinding, polishing, mixing, and blending workers1036079460410*
Cutting workers845276354621*
Inspectors, testers, sorters, samplers, and weighers687625419735268506
Medical, dental, and ophthalmic laboratory technicians7750438*38*
Packaging and filling machine operators and tenders264430126493138396
Painting workers16857615359016*
Photographic process workers and processing machine operators5043725*25*
Production workers, all other912540636583276445

Liberal arts graduates enjoyed some of the biggest proportional increases in average starting salary offers, according to the NACE survey, although the amount of starting offers lagged behind offers to recent graduates of more technical disciplines. Every major liberal arts category saw an increase in average starting salary offers, including history majors, who averaged offers of $35,092, up 6.1% over the previous year; political science and government majors, who averaged offers of $35,261, up 6.5% over 2006; and sociology majors, who averaged offers of $32,161, up 3.4% over the previous year.

TABLE 6.2
Median weekly earnings of full-time wage and salary workers, by detailed occupation and sex, 2007

[Numbers in thousands; earnings in dollars.]
2007
Both sexesMenWomen
OccupationNumber of workersMedian weekly earningsNumber of workersMedian weekly earningsNumber of workersMedian weekly earnings
*Data are not shown where base is less than 50,000.
Note: Updated population controls are introduced annually with the release of January data. Dash indicates no data or data that do not meet publication criteria.
SOURCE: Adapted from 39. Median Weekly Earnings of Full-Time Wage and Salary Workers by Detailed Occupation and Sex, in Employment and Earnings, U.S. Department of Labor, Bureau of Labor Statistics, January 2008, http://www.bls.gov/cps/cpsaat39.pdf (accessed February 2, 2008)
Transportation and material moving occupations6,900$5705,959$596942$424
Supervisors, transportation and material moving workers20381116483639*
Aircraft pilots and flight engineers951,358921,3814*
Bus drivers365507187540178476
Driver/sales workers and truck drivers2,7726652,658672113499
Taxi drivers and chauffeurs21750118951828*
Locomotive engineers and operators541,157511,1842*
Railroad conductors and yardmasters5191249*2*
Parking lot attendants71410644226*
Service station attendants63404574116*
Crane and tower operators5571555716
Industrial truck and tractor operators53251950352229*
Cleaners of vehicles and equipment23340520041333*
Laborers and freight, stock, and material movers, hand1,4284741,195486233418
Packers and packagers, hand335374114414221362
Refuse and recyclable material collectors60517585253*

EMPLOYEE BENEFITS

Government Employment

In 2008 the BLS stated in Career Guide to Industries (State and Local Government, Except Education and Hospitals, http://www.bls.gov/oco/cg/cgs042.htm) that employer-provided benefits, such as health insurance, life insurance, and retirement benefits, were more commonly available to government employees than they were to workers employed in private industry. About three-fourths (73%) of employees of state and local governments had paid holidays in 1998 (still the most current statistics available from the BLS and published in Employee Benefits in State and Local Governments, 1998, December 2000, http://www.bls.gov/ncs/ebs/sp/ebbl0018.pdf). More than one-third (38%) of government workers were eligible for paid personal leave, and 96% had paid sick leave. Also as a benefit, 95% of state and local government employees were offered unpaid family leave. Most (89%) participated in employer-provided life insurance plans, and 86% had medical care plans, with 51% of the participants paying a monthly contribution to the health plan. Most government employees (98%) were provided with retirement income benefits.

Private Industry

According to data from the BLS in National Compensation Survey: Employee Benefits in Private Industry in the United States (August 2007, http://www.bls.gov/ncs/ebs/sp/ebsm0006.pdf), workers in goods-producing industries had greater access to benefits in March 2007 than did employees of service-producing industries. In addition, people who worked for companies that employed at least a hundred people often had greater access to a variety of benefits than did employees of small companies, especially retirement plans, health insurance, and disability benefits. Other benefits that workers in private industry typically received included paid holidays and vacations and life insurance plans, and occasionally child care resources, stock option plans, short-term disability plans, and long-term care insurance. These benefits are discussed in more detail below.

PAID HOLIDAYS AND VACATION DAYS. The number of paid holiday and vacation days that workers in private industry received varied by occupation, wages, size of workplace, union status, and industry. Over three-quarters (77%) of all workers received paid holidays and paid vacations, as reported by the BLS in the National Compensation Survey. On average, these workers received eight paid holidays per year. Workers whose wages were $15 per hour or higher averaged nine paid holidays, while workers with lower wages averaged only seven. Unionized workers received, on average, ten yearly paid holidays, compared with nonunion workers, who averaged only eight. The average number of vacation days workers were eligible for increased with length of service. After one year, as reported in the National Compensation Survey, workers were eligible for, on average, 8.9 vacation days, after five years they were eligible for 13.5 days, and after ten years they were eligible for 16.1 days. Workers in management and professional occupations were eligible for significantly more vacation days than workers in other occupations, as were workers who made $15 per hour or more and workers who worked in establishments with at least one hundred workers.

HEALTH INSURANCE. According to the National Compensation Survey, 71% of all private industry workers had access to employer-provided medical care plans and slightly more than half (52%) participated in such plans in March 2007. Medical care plans were the benefits most widely available to workers in private industry, followed closely by prescription drug coverage. (See Figure 6.1.) Nearly half of all workers (46%) had access to dental care, 29% had access to vision care, and 68% had access to prescription drug coverage. (See Table 6.3.) Workers in management and professional fields had more access to medical care (85%) than did workers in other fields, as did workers whose wages were $15 or more (87%), workers in goods-producing industries (85%), and workers in establishments with at least one hundred workers (84%).

Three-quarters (76%) of employees with single-coverage medical care and 87% of employees with family coverage were required to make a contribution toward their health insurance in March 2007. (See Table 6.4 and Table 6.5.) Employees with single coverage were required to pay, on average, 19% of their health insurance premiums, while those with family plans were required to pay, on average, 29% of their health insurance premiums. As shown in Table 6.4 and Table 6.5, employees with single coverage were required to pay an average of $81.37 per month, and those with family coverage were required to pay an average of $312.78 per month. These premiums were up from an average of $60.24 per month for single coverage and $228.98 per month for family coverage in 2003, figures reported by the BLS in National Compensation Survey: Employee Benefits in Private Industry in the United States, 20022003 (January 2005, http://www.bls.gov/ncs/ebs/sp/ebbl0020.pdf).

Some employees in private industry had access to other health-care benefits in addition to health insurance in 2007. The National Compensation Survey found that 33% of all employees had access to health-care reimbursement accounts, a type of health-care plan in which employers set aside funds to reimburse employees for qualified medical expenses. (See Table 6.6.) Another 8% of all employees had access to health savings accounts, in which employees themselves could place pretax dollars into health-care accounts and then get reimbursed from that account for qualified medical expenses. Workers in management and professional occupations were much more likely than any other groups to have access to these accounts. More than half (55%) of all managers and professionals had access to health-care reimbursement accounts, compared with only 35% of sales and office workers and lesser proportions of the other major occupational groups. Likewise, managers and professionals (12%) as well as sales and office workers (11%) had more access to health savings accounts than did workers in other occupations. Workers that made at least $15 per hour were more likely to have access to both of these benefits than were workers who made less. Workers in larger establishments (one hundred workers or more) also had more access to these benefits than did workers in smaller establishments.

Other health-care benefits offered to some workers in private industry included wellness programs (25%), fitness centers (13%), and employee assistance programs (42%). (See Table 6.6.) Employees of establishments

TABLE 6.3
Percent of workers in private industry with access to and participating in health-care benefits, by selected characteristics, March 2007

[All workers = 100 percent]
Medical careDental careVision careOutpatient prescription drug coverage
CharacteristicsAccessParticipationTake-up rate*AccessParticipationTake-up rate*AccessParticipationTake-up rate*AccessParticipationTake-up rate*
a The take-up rate is an estimate of the percentage of workers with access to a plan who participate in the plan, rounded for presentation.
b The wage breakout is based on the average wage for each occupation surveyed, which may include workers both above and below the threshold.
SOURCE: Table 5. Healthcare Benefits: Access, Participation, and Take-Up Rates, Private Industry Workers, National Compensation Survey, March 2007, in National Compensation Survey: Employee Benefits in Private Industry in the United States, March 2007, U.S. Department of Labor, Bureau of Labor Statistics, August 2007, http://www.bls.gov/ncs/ebs/sp/ebsm0006.pdf (accessed February 18, 2008)
All workers715273463677292276684973
Worker characteristics
Management, professional, and related856778625182393077826478
Service462861282070201472442762
Sales and office714868473370271973674668
Natural resources, construction, and maintenance766180433685312684725880
Production, transportation, and material moving786077493879302479755777
Full time856475564479352778816175
Part time2412511695611763231251
Union887888686290534788857588
Nonunion694971443374261974664671
Average wage less than $15 per hourb573764342367201470543564
Average wage $15 per hour or higherb877080615183393180846780
Establishment characteristics
Goods producing856881544584332782816681
Service providing674770443375282175644570
1 to 99 workers594271302478191473553971
100 workers or more846275644976403178816074
Geographic areas
Metropolitan areas725273473677292276685073
Nonmetropolitan areas664873413277262179644672
New England684769513875231667654568
Middle Atlantic725474463677342575675075
East North Central725374453578252078705274
West North Central675277433682201781665077
South Atlantic725271443373272072694972
East South Central755775524280393385735575
West South Central664669392975211575614269
Mountain704869443273282177684769
Pacific725475544379393178685175

with one hundred workers or more were much more likely to have access to these benefits than other employees, as were employees with wages of $15 per hour or more.

RETIREMENT BENEFITS. Six out of every ten workers (61%) in private industry had access to retirement benefits in March 2007, according to the National Compensation Survey. Half of all workers (51%) participated in these plans; 84% of all workers with access to a retirement plan took part in it. (See Table 6.7.)

Retirement plans may be one of two types: defined benefit or defined contribution. Defined benefit plans promise a specified monthly benefit at retirement. Most benefit plans of this type are protected by federal insurance provided through the Pension Benefit Guaranty Corporation. Defined contribution plans, on the other hand, do not promise a specific amount of benefits at an employee's retirement. Instead, the employer or the employee, or more commonly both, contribute a set amount of money (usually a percentage of annual salary) to the employee's retirement account. These contributions are generally invested in stock, real estate, or other investments. The balance in the account on retirement is available to the employee. Defined contribution plans include 401(k) plans, 403(b) plans, and employee stock ownership plans. Defined contribution plans were much more commonly available to workers in private industry than were defined benefit plans in 2007. (See Figure 6.1.)

In 2007 one in five workers in private industry (21%) had access to a defined benefit plan; almost all took part in these plans, because they generally require no

TABLE 6.4
Single coverage medical plans in private industry, by employer and employee premiums, March 2007

[All workers with single coverage medical plans = 100 percent]
TotalEmployee contribution not requiredEmployee contribution required
CharacteristicsPercent of participating employeesAverage flat monthly employer premiumPercent of participating employeesAverage flat monthly employer premiumPercent of participating employeesAverage flat monthly employer premiumAverage flat monthly employee contribution
*The wage breakout is based on the average wage for each occupation surveyed, which may include workers both above and below the threshold.
Note: Because of rounding, sums of individual items may not equal totals.
SOURCE: Table 11. Medical Plans, Single Coverage: Employer and Employee Premiums by Employee Contribution Requirement, Private Industry Workers, National Compensation Survey, March 2007, in National Compensation Survey: Employee Benefits in Private Industry in the United States, March 2007, U.S. Department of Labor, Bureau of Labor Statistics, August 2007, http://www.bls.gov/ncs/ebs/sp/ebsm0006.pdf (accessed February 18, 2008)
All workers with single coverage medical plans100$293.2524$382.1976$265.74$81.37
Worker characteristics
Management, professional, and related100293.7421355.2679277.7379.97
Service100272.5018395.8582246.3288.89
Sales and office100281.2421353.9079262.0683.63
Natural resources, construction, and maintenance100350.3738467.4962278.3782.21
Production, transportation, and material moving100286.8226365.7774258.4375.38
Full time100293.7124381.9076266.3880.67
Part time100285.5023387.2277254.8193.04
Union100408.4650479.5750337.5162.45
Nonunion100272.1219334.7281257.6283.51
Average wage less than $15 per hour*100264.9718334.5882249.3384.74
Average wage $15 per hour or higher*100310.9927402.5373277.2479.00
Establishment characteristics
Goods producing100316.4829423.7271272.5376.48
Service providing100284.6622361.5378263.4683.00
1 to 99 workers100295.6531388.5769253.7189.89
100 workers or more100291.4918374.1682273.1676.10
Geographic areas
Metropolitan areas100297.1724391.3376267.2081.33
Nonmetropolitan areas100270.9821321.5679257.7881.56
New England100306.8816478.9984273.4296.82
Middle Atlantic100310.7427392.8673280.1679.79
East North Central100301.6423407.5377269.4381.06
West North Central100303.7225399.7775271.8977.38
South Atlantic100268.3919323.3881255.4982.96
East South Central100245.0316307.9684232.6184.61
West South Central100293.2122350.7078277.2478.48
Mountain100297.9023418.4477262.4785.42
Pacific100303.5032387.5768263.4475.65

contribution from the employee. (See Table 6.7.) Over half (55%) of all workers had access to a defined contribution plan; 43% of all workers participated in such a plan. Only 77% of all workers with access to a defined contribution plan took part in it.

As with other benefits, managers and professionals were the most likely workers to have access to retirement benefits (76% of them did); service workers were least likely to have such access (36% of them did). (See Table 6.7.) Unionized workers were much more likely than nonunion workers to have access to retirement benefits (84% and 58%, respectively). Workers who earned $15 per hour or more were more likely than lower-paid workers to have retirement benefits (76% and 47%, respectively). Workers in establishments with one hundred or more workers were more likely than workers in smaller establishments to have access to retirement benefits (78% and 45%, respectively).

Although women have increasingly entered the workforce since the 1970s, elderly women continue to have lower retirement income than do men. As reported by the U.S. Government Accountability Office in Retirement Security: Women Face Challenges in Ensuring Financial Security in Retirement (October 2007, http://www.gao.gov/new.items/d08105.pdf), this is largely due to their lower labor force participation and lower average lifetime earnings. Therefore, women have less income from pensions and Social Security, both income-dependent sources of retirement benefits. This lower income is particularly problematic for divorced women and widowed women.

TABLE 6.5
Family coverage medical plans in private industry, by employer and employee premiums, March 2007

[All workers with family coverage medical plans = 100 percent]
TotalEmployee contribution not requiredEmployee contribution required
CharacteristicsPercent of participating employeesAverage flat monthly employer premiumPercent of participating employeesAverage flat monthly employer premiumPercent of participating employeesAverage flat monthly employer premiumAverage flat monthly employee contribution
*The wage breakout is based on the average wage for each occupation surveyed, which may include workers both above and below the threshold.
Note: Because of rounding, sums of individual items may not equal totals.
SOURCE: Table 12. Medical Plans, Family Coverage: Employer and Employee Premiums by Employee Contribution Requirement, Private Industry Workers, National Compensation Survey, March 2007, in National Compensation Survey: Employee Benefits in Private Industry in the United States, March 2007, U.S. Department of Labor, Bureau of Labor Statistics, August 2007, http://www.bls.gov/ncs/ebs/sp/ebsm0006.pdf (accessed February 18, 2008)
All workers with family coverage medical plans100$664.0413$814.4487$642.02$312.78
Worker characteristics
Management, professional, and related100702.159810.8291691.43313.42
Service100576.288678.2492567.06342.92
Sales and office100645.719795.1391630.42333.44
Natural resources, construction, and maintenance100659.8326839.2074595.82314.33
Production, transportation, and material moving100683.1918844.4482648.82263.68
Full time100666.8213823.8987643.76311.94
Part time100614.2112637.6788610.93327.75
Union100790.2143832.6857758.15211.91
Nonunion100641.657795.6393629.33323.80
Average wage less than $15 per hour*100602.298705.1892593.33326.84
Average wage $15 per hour or higher*100702.5216849.0584675.14303.21
Establishment characteristics
Goods producing100706.8420869.4980666.51267.46
Service providing100648.3610775.0690634.02327.58
1 to 99 workers100608.1815804.4885572.25359.49
100 workers or more100704.1411824.6589689.50280.99
Geographic areas
Metropolitan areas100670.6413815.3387648.13315.15
Nonmetropolitan areas100626.359806.6791608.87299.92
New England100717.539889.8891700.81319.38
Middle Atlantic100711.9617792.1983695.66299.81
East North Central100723.9217898.4383687.79285.19
West North Central100658.4615790.6985635.56294.00
South Atlantic100623.017833.5393607.34334.43
East South Central100584.506816.5194568.80294.46
West South Central100638.596721.4394633.45334.41
Mountain100620.3211809.1889596.74359.24
Pacific100644.9419752.0581620.60312.25

EMPLOYEE CONTRIBUTIONS. In most defined contribution retirement plans, such as the 401(k), employee contributions are made with pretax dollars. This means the employee's taxable income is reduced by the amount of the contribution. However, taxes are deferred, not eliminated. When the employee starts withdrawing funds from the plan, taxes must be paid on the pretax contributions, any employer-matching funds, and any earnings on these contributions.

All of these plans require a basic employee contribution, which may be matched by the employer. However, not all employers make matching contributions. Many plans allow an additional contribution by the employee in excess of the maximum amount matched by the employer. This is called a voluntary employee contribution.

Employee savings, thrift, and retirement benefit plans are expected to come under closer public and government scrutiny in the wake of individual and corporate losses caused by stock market fluctuations in the early 2000s. During the strong market years of the mid-to late-1990s, some industry leaders and politicians believed that even government-mandated programs such as Social Security should rely more heavily on private-market investment at the discretion of the individual worker. As the stock market dropped in value at the start of the decade, particularly following the terrorist attacks in New York City and Washington, D.C., in September

TABLE 6.6
Percent of workers in private industry with access to selected health benefits, March 2007

[All workers = 100 percent]
CharacteristicHealth savings accountsHealth-care reimbursement accountsWellness programsFitness centersEmployee assistance programs
*The wage breakout is based on the average wage for each occupation surveyed, which may include workers both above and below the threshold.
SOURCE: Table 6. Selected Health Benefits: Access, Private Industry Workers, National Compensation Survey, March 2007, in National Compensation Survey: Employee Benefits in Private Industry in the United States, March 2007, U.S. Department of Labor, Bureau of Labor Statistics, August 2007, http://www.bls.gov/ncs/ebs/sp/ebsm0006.pdf (accessed February 18, 2008)
All workers833251342
Worker characteristics
Management, professional, and related1255422560
Service21813926
Sales and office1135241145
Natural resources, construction, and maintenance31916527
Production, transportation, and material moving627231041
Full time938281446
Part time41715829
Union337371164
Nonunion833241339
Average wage less than $15 per hour*62315831
Average wage $15 per hour or higher*1045361954
Establishment characteristics
Goods producing731251339
Service providing834251343
1 to 99 workers41711421
100 workers or more1151402265
Geographic areas
Metropolitan areas834261343
Nonmetropolitan areas526181234
New England837271842
Middle Atlantic531251439
East North Central835291542
West North Central740261642
South Atlantic103222946
East South Central825201641
West South Central733211040
Mountain836221139
Pacific831271242

2001, opponents of privatizing Social Security argued that individual workers should not have to shoulder increased risk in the investment of their own Social Security funds.

Laws related to employee retirement plans changed following the 2001 accounting scandal and subsequent bankruptcy of Enron Corporation, which left employee 401(k) accounts ravaged. Many Enron employees, with management's encouragement, had heavily invested their retirement savings in their own company. A large number of current and former Enron employees lost their entire retirement savings when the company collapsed. In the aftermath of the Enron scandal, Congress began to discuss restricting the percentage of an employee's 401(k) that can be invested in the employee's own company. Congress passed a Pension Protection Act in 2006 that made employer retirement savings plans less vulnerable. The legislation included provisions addressing employee retirement income security, the tax ramifications of savings plans, benefit accrual standards, and health care affordability.

Social Security

The Social Security Act of 1935 created the Old-Age and Survivors Insurance Program, which provided retirement benefits to workers aged sixty-five and older. It financed these benefits through a payroll tax, paid in part by employers and in part by employees. By January 2007, according to the Employee Benefit Research Institute (EBRI) in The Basics of Social Security (May 2007, http://www.ebri.org/pdf/publications/facts/0507fact.pdf), retired workers received an average monthly Social Security benefit of $1,044. A retired couple, both receiving benefits, averaged $1,713 per month.

The EBRI indicated that the aging of the U.S. population and the expected retirement of many baby-boomers in the coming two decades will put a severe strain on Social Security funds. Using intermediate cost assumptions, the

TABLE 6.7
Percent of workers in private industry with access to and participating in retirement benefits, by selected characteristics, March 2007

[All workers = 100 percent]
All retirement benefitsaDefined benefitDefined contribution
CharacteristicsAccessParticipationTake-up ratebAccessParticipationTake-up ratebAccessParticipationTake-up rateb
a Includes defined benefit pension plans and defined contribution retirement plans. The total is less than the sum of the individual items because many employees participated in both types of plans.
b The take-up rate is an estimate of the percentage of workers with access to a plan who participate in the plan, rounded for presentation.
c The wage breakout is based on the average wage for each occupation surveyed, which may include workers both above and below the threshold.
SOURCE: Table 1 Retirement Benefits: Access, Participation, and Take-Up Rates, Private Industry Workers, National Compensation Survey, March 2007, in National Compensation Survey: Employee Benefits in Private Industry in the United States, March 2007, U.S. Department of Labor, Bureau of Labor Statistics, August 2007, http://www.bls.gov/ncs/ebs/sp/ebsm0006.pdf (accessed February 18, 2008)
All workers615184212095554377
Worker characteristics
Management, professional, and related 766991292897716084
Service3625698794322063
Sales and office645484191793604778
Natural resources, construction, and maintenance615184262597514077
Production, transportation, and material moving655483262596564174
Full time706085242396645079
Part time31237310990271865
Union848196696797494185
Nonunion584782151595564376
Average wage less than $15 per hourc473675111092443070
Average wage $15 per hour or higherc766990333297695783
Establishment characteristics
Goods producing706186292898624979
Service providing584883191894534177
1 to 99 workers4537829996423379
100 workers or more786685343295705376
Geographic areas
Metropolitan areas615285222195564378
Nonmetropolitan areas574478141496533872
New England575088212096534483
Middle Atlantic625590272697534483
East North Central645687252496564580
West North Central635587212096564581
South Atlantic625080171796594475
East South Central664671141392644266
West South Central554480171695513874
Mountain635079181692604474
Pacific574884212095493877

government estimates that the trust funds that finance Social Security benefits (through a combination of taxes and interest income) will become bankrupt by 2041.

Many proposals have been put forth to keep the Social Security trust fund solvent. The proposals all would cut benefits for future retirees, especially for those born later, according to the EBRI in Estimating the Value of Changes in OASI Benefits under Social Security Reforms (June 2006, http://www.ebri.org/publications/notes/index.cfm?fa=notesDisp&content_id=3643). For example, benefit cuts for people born in 1962 might range from $300 annually for those with the smallest benefits to about $3,000 annually for those entitled to the largest benefits. However, workers born in 1997 could see reductions in annual benefits ranging from $2,200 to $10,370. Therefore, many retirees in the future will not be able to maintain their standard of living without saving additional amounts of money themselves to supplement their reduced Social Security benefits. This prospect makes retirement benefits offered by employers as part of the employment package even more valuable.

Americans are very uncomfortable with the crisis facing the Social Security system, as it puts their overall quality of life in retirement years at risk. Lydia Saad of the Gallup Poll reported in State of the Union: Both Good and Bad (January 24, 2008, http://www.gallup.com/poll/103918/Americans-State-Union-Ratings-All-Bad.aspx) that less than a third of people surveyed (31%) in January 2008 were satisfied with the state of the nation's Social Security and Medicare (health insurance for seniors) systems. Additional Gallup data from 2005 (http://www.gallup.com/poll/1693/Social-Security.aspx) indicated that 45% of Americans agreed that immediate changes were needed to ensure the long-term future of the Social Security system. Another third (36%) believed changes were needed within the next decade, and nearly two in ten (19%) either had no opinion or did not think major changes were needed before 2015. More than half of poll respondents from April and May 2005 (54%) opposed a proposal that would cut Social Security benefits for middle and high income workers even if benefits for lower income workers and those born before 1950 were not affected. Nearly four in ten (38%) favored this idea.

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