ENG-2013 — Page 76

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The Economy

Job vacancies continued to increase strongly in all major economic sectors in 2013, reflecting a general tightening of the manpower situation. The number of private sector vacancies climbed by 12.1 per cent to 77,180. The private sector vacancy rate rose further to 2.8 per cent in 2013, the highest since 1994. In 2013, the ratio of job vacancies per 100 job-seekers was 59, up from the 55 recorded in 2012. In terms of skill segment, the ratio for higher-skilled jobs declined slightly from 85 to 81 over the same period, while that for lower-skilled jobs increased from 57 to 64. The increase in the ratio for lower-skilled jobs was particularly apparent among service and sales workers, and plant and machine operators and assemblers. Analysed by economic sector, manpower shortages were particularly evident in the human health services, and residential care and social work services sectors, with their corresponding ratios far exceeding 100.

On the back of favourable labour market conditions, wages and earnings sustained solid growth in 2013. Labour earnings in the private sector increased by 5.4 per cent in 2013. After adjusting for inflation, there was a real improvement of 1.1 per cent (Chart 13). Analysed by economic sector, nominal payroll rose in all major sectors in 2013, and more prominently in professional and business services, accommodation and food service activities, and the retail trade. Separately, data from the General Household Survey, though not strictly comparable to those from the business establishment surveys, showed that the average monthly employment earnings of full-time employees (excluding foreign domestic helpers) in the lowest decile group continued to enjoy above-average income gain at 6.1 per cent in nominal terms and 1 per cent in real terms for 2013 as a whole. As regards the overall income situation, median household income (excluding foreign domestic helpers) rose by 8.2 per cent to $22,200 in 2013 from $20,500 in 2012, translating into an improvement of 3.7 per cent in real terms.

Chart 13

Labour Earnings (year-on-year rate of change)

Per cent

10

00

8

6

4

2

-2-

-4

In money terms

ки

In real terms

-6

Q1 Q3 Q1 Q3 Q1 Q3 Q1

Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3

| 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 |

Labour earnings sustained solid increases in 2013.

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