It is calculated by summing all the annual salaries of all persons in work (surveyed) and dividing the total by the number of workers (surveyed).
[1] It is not the same as the Gross domestic product (GDP) per capita, which is calculated by dividing the GDP by the total population of a country, including the unemployed and those not in the workforce (e.g. retired people, children, students, etc.).
[citation needed] It can be useful in understanding economic conditions, and to employers and employees in negotiating salaries.
[1] The national median salary is usually significantly less than the national average salary because the distribution of workers by salary is skewed.
[2] Comprehensive Employment and Training Act