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.

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