3
The Economy
Reflecting increasing tightness in the labour market, job vacancies in the private sector establishments continued to stand high across occupations and economic sectors in 2012, with the number of private sector vacancies jumping by 21.5 per cent to 68,800. In December 2012, the ratio of job vacancies was 56 per 100 job-seekers, higher than that of 48 the year before. Concurrently, the corresponding ratio for lower-skilled jobs rose sharply to 63 from 45, but that for higher-skilled jobs dropped to 63 from 84. Analysed by economic sector, job vacancies increased substantially in December 2012 in accommodation and food services (up 31.9 per cent year-on-year), professional and business services (excluding cleaning and similar services) (up 22.3 per cent), and retail (up 20.4 per cent) on the back of vibrant local consumption and domestic demand. These figures suggested that manpower shortages in some segments became more evident amidst the relatively tight labour market.
Thanks to the favourable labour market and the effect of the statutory minimum wage, wages and earnings sustained solid and broad-based growth in 2012. Labour earnings in the private sector increased by 6.5 per cent in 2012, though not as much as in 2011. After adjusting for inflation, there was a real improvement of 2.3 per cent (Chart 13). Analysed by economic sector, nominal payroll rose across almost all sectors in 2012, more prominently in retail, manufacturing and information and communications. Separately, data from the General Household Survey, though not strictly comparable to those from the business establishment surveys, indicated that the average employment earnings of full-time employees in the lowest decile group went up by 6.7 per cent in nominal terms and 2.4 per cent in real terms in the fourth quarter of 2012 over a year earlier. Over the same period, median household income rose by 5 per cent from $20,000 to $21,000. After adjusting for inflation, there was still an improvement of 1.2 per cent in real terms.
Chart 13
Per cent
10-
8
6
4
2
0
-2-
+
-6
Labour Earnings (year-on-year rate of change)
In money terms
In real terms
Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012
Labour earnings continued to improve in both nominal and real terms in 2012.
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