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THE ECONOMY
Along with relative tightening in the labour market, labour earnings reverted to a mild uptrend since mid-2000. Payroll per person engaged rose by 2 per cent in money terms in both the second and third quarters of 2000 over a year earlier, after remaining static in the first quarter. A broadly similar profile was observed for labour wages, with nil change in money terms in the first quarter of 2000 over a year earlier, followed by a gain of 1 per cent each in the ensuing two quarters. Yet after netting out the moderated decline in consumer prices, the increase in earnings and wages in real terms, by about 3-5 per cent in the third quarter of 2000 over a year earlier, was somewhat smaller than the 4-7 per cent rise in the preceding two quarters. On a seasonally adjusted quarter-to-quarter comparison, overall earnings were virtually flat in money terms in both the first and third quarters of 2000, but were up slightly by 1 per cent in the second quarter. In real terms, there was an increase of 1 per cent in each of the three quarters.
Chart 13
Earnings and wages
(year-on-year rate of change in money terms)
Per cent
14
12
Earnings
10
8
6
Wages
4
2
0
-2
1996
1997
1998
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
1995
1999 ❘ 2000
Labour earnings and wages, having declined for a year or so, reverted to mild increases since mid-2000.
For all the service sectors surveyed taken together, earnings were higher by 2 per cent in money terms or 5 per cent in real terms in the third quarter of 2000 than a year earlier. Within this total, earnings in the wholesale, retail and import/export trades rose somewhat faster, by 4 per cent in money terms or 6 per cent in real terms, partly due to increased payment of bonuses and commissions by some trading firms. Earnings in transport, storage and communications, in financing, insurance, real estate and business services, and in restaurants and hotels were lifted by 1-2 per cent in money terms or 4-5 per cent in real terms. Yet earnings in community, social and personal services decreased slightly by 1 per cent in money terms, albeit still up by 2 per cent in real terms. As to the local manufacturing sector, earnings rose by 1 per cent in money terms or 4 per cent in real terms.
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