ENG-2001 — Page 101

THE ECONOMY

went up by 2 per cent in money terms in the third quarter of 2001 over a year earlier. This was roughly similar to the increases of 3 per cent and 2 per cent respectively in the first and second quarters. Netting out the decline in consumer prices, overall labour earnings were 3 per cent higher in real terms in the third quarter of 2001 than a year earlier, further moderated from the increases of 5 per cent and 4 per cent respectively in the first and second quarters. On a seasonally adjusted quarter-to- quarter comparison, overall labour earnings were virtually flat in money terms but rose by 1 per cent in real terms in the third quarter of 2001. This followed a 1 per cent rise in the first quarter, and nil change in the second quarter. As to overall labour wages in the private sector, the year-on-year increases in March, June and September were all 1 per cent in money terms. Netting out the fall in consumer prices, overall labour wages were up by 2 per cent in real terms in September 2001 over a year earlier, following increases of 4 per cent and 2 per cent respectively in March and June (Chart 13).

Chart 13

Earnings and wages

(year-on-year rate of change in money terms)

Per cent

12

10

8

6

Wages

4

2

0

-2

Earnings

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 QI Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

1996

2000

1997

1998

1999

Ì 2001

Labour earnings and wages in the private sector rose mildly in 2001, yet this largely reflected the pay rise effected in the early part of the year on the basis of improved business conditions in 2000.

Analysed by economic sector, labour earnings for all the service sectors surveyed taken together edged up by 2 per cent in money terms or 3 per cent in real terms in the third quarter of 2001 over a year earlier. Within this broad group, earnings in community, social and personal services recorded a gain of 3 per cent in money terms or 4 per cent in real terms. Earnings in the wholesale, retail and import/export trades increased by 2 per cent in money terms or 3 per cent in real terms, mainly reflecting higher income in the import/export trade. Earnings in transport, storage and communications also rose, by 2 per cent in money terms or 3 per cent in real terms. Yet earnings in restaurants and hotels, and in financing, insurance, real estate and business services edged lower by 1 per cent in money terms, though unchanged in real

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