ENG-2010 — Page 101

The Economy | 59

The latest surge in job vacancies, while occurring almost across the board, was most visible in the accommodation and food services; financing and insurance, real estate, professional and business services; information and communications; and transportation, storage, postal and courier services sectors.

In tandem with continued improvement in the economy and the labour market, labour earnings in the private sector rose by 2.4 per cent in money terms in 2010, albeit with a slight increase of 0.1 per cent in real terms (Chart 13). Within the workforce, employees engaged in financial and insurance activities enjoyed a distinct increment of 7.2 per cent in their nominal earnings in 2010, followed by those in retail; transportation, storage, postal and courier services; and accommodation and food service activities, with corresponding increases of 3.9 per cent, 3.4 per cent and 3.3 per cent.

Labour Earnings

Chart 13

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

Per cent

15

10

(b) Year-on-year rate of change

in real terms

Per cent

15

10

5

5

All industry

section

0

0

All industry

section

-5

-5

Financial and

-10

insurance activities

-10

Financial and insurance activities

-15

-15

Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3

Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 2006 | 2007 | 2008 | 2009 | 2010

2006 | 2007 | 2008 | 2009 | 2010

Overall labour earnings reverted to moderate increases both in nominal and real terms in 2010.

The Property Market

The residential property market was buoyant during most of 2010 on the back of further recovery of the economy, abundant liquidity and extremely low interest rates. Residential property prices in the fourth quarter of 2010 soared by another 22 per cent over a year earlier, following a 23 per cent rebound in the preceding year. Overall flat rentals gained by a further 17 per cent over the same period. As a consequence of the rally since early 2009, overall flat prices and rentals were only 4 per cent and 9 per cent respectively below their peaks in 1997 (Chart 14).