Wage and Payroll Statistics for September 2008
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Overall Wage and Payroll Statistics
According to the figures released today (December 29) by the Census and Statistics Department, the average wage rate for all the major sectors surveyed, as measured by the wage index, rose by 4.0% in nominal terms in September 2008 over a year earlier.
About 65% of the companies recorded increase in average wage rates in September 2008 compared with a year ago. On the other hand, 25% of the companies recorded decrease in average wage rates over the same period. The remaining 10% reported virtually no change in average wage rates.
After discounting the decrease in consumer prices as measured by the Consumer Price Index (A), the overall average wage rate for all the major sectors surveyed increased by 4.3% in real terms in September 2008 over a year earlier.
As for payroll, the index of payroll per person engaged for all the major sectors surveyed increased by 5.2% in nominal terms in the third quarter of 2008 over a year earlier.
After netting out the effect of the increase in consumer prices as measured by the Composite Consumer Price Index, the average payroll per person engaged increased by 0.5% in real terms in the third quarter of 2008 over a year earlier.
The wage rate includes basic wages and other regular and guaranteed allowances and bonuses. Payroll includes elements covered by wage rate as well as other irregular payments to workers such as discretionary bonuses and overtime allowances. The payroll statistics therefore tend to show relatively larger quarter-to-quarter changes, affected by the number of hours actually worked and the timing of payment of bonuses and back-pay.
Sectoral Changes
For the nominal wage indices, year-on-year increases were observed in all selected major sectors in September 2008, ranging from 0.5% to 4.9%.
For the real wage indices, year-on-year increases were observed in all selected major sectors in September 2008, ranging from 0.9% to 5.2%.
The year-on-year changes in the nominal and real wage indices for the selected major sectors from September 2007 to September 2008 are shown in Table 1.
As for the nominal indices of payroll per person engaged, year-on-year increases were recorded in all major sectors in the third quarter of 2008, ranging from 2.4% to 6.2%.
For the real payroll indices, the year-on-year increases in the wholesale, retail and import/export trades, restaurants and hotels sector and the financing, insurance, real estate and business services sector in the third quarter of 2008 were 0.3% and 1.5% respectively. On the other hand, year-on-year decreases were observed in the manufacturing sector, the transport, storage and communications sector, and the community, social and personal services sector, ranging from 0.6% to 2.2%.
The year-on-year changes in the nominal and real indices of payroll per person engaged for selected major sectors from the third quarter of 2007 to the third quarter of 2008 are shown in Table 2. The quarterly changes in the seasonally adjusted nominal and real indices of payroll per person engaged between the third quarter of 2007 and the third quarter of 2008 are shown in Table 3.
Other information
Both wage indices and payroll indices are compiled quarterly based on the results of the Labour Earnings Survey conducted by the Census and Statistics Department (C&SD).
Wage statistics are conceptually different from the payroll statistics. Firstly, wage rate for an employee refers to the sum earned for his normal hours of work. It covers basic wages and other regular and guaranteed allowances and bonuses, but excludes earnings from overtime work and discretionary bonuses, which are however included in payroll per person engaged. Secondly, the payroll index of an industry is an indicator of the simple average payroll received per person engaged in the industry. Its movement is therefore affected by changes in wage rates, the number of hours of work and occupational composition in the industry. In contrast, the wage index of an industry is devised to reflect the pure changes in wage rate, with the number of hours of work and occupational composition between two successive statistical periods being kept unchanged. In other words, the wage index reflects the change in the price of labour. Thirdly, wage index only covers employees up to the supervisory level (i.e. not including managerial and professional employees), whereas payroll index covers employees at all levels and proprietors actively engaged in the work of the establishment. Because of these conceptual and enumeration differences between payroll and wage statistics, the movements in payroll indices and in wage indices do not necessarily match closely with each other.
It should also be noted that different consumer price indices are used for compiling the real indices of wage and payroll to take into account the differences in their respective occupation coverage. Specifically, the Composite Consumer Price Index, being an indicator of overall consumer prices, is taken as the price deflator for payroll of workers at all levels of the occupational hierarchy. The Consumer Price Index (A), being an indicator of consumer prices for the middle to lower income groups, is taken as the price deflator for wages in respect of employees on occupations up to the supervisory level.
Starting from the fourth quarter of 2008, the X-12 ARIMA method will replace the current X-11 ARIMA method for performing seasonal adjustment of the nominal and real indices of payroll per person engaged. The X-12 ARIMA method is an update to the X-11 ARIMA method with enhanced modelling and diagnostic capabilities. The X-12 ARIMA has now been a standard method used by statistical offices in many countries/territories for performing seasonal adjustment of statistical series.
Detailed breakdowns of the payroll and wage statistics are published in the "Quarterly Report of Wage and Payroll Statistics, September 2008". Users can download this publication free of charge at the Website of the Census and Statistics Department (C&SD) (www.censtatd.gov.hk/products_and_services/products/publications/index.jsp). Print version of this publication is available for sale at HK$50 per issue. Purchase can be done in person at the Publications Unit of the C&SD (Address: 19/F Wanchai Tower, 12 Harbour Road, Wan Chai; Tel.: 2582 3025) or through mail order by returning a completed order form which can be downloaded from the C&SD's website (www.censtatd.gov.hk/products_and_services/other_services/provision_of_stat/mail_ordering_of_publications/index.jsp). Print version of this publication is also available for sale online at the Government Bookstore of the Information Services Department (www.bookstore.gov.hk).
For enquiries on payroll and wage statistics, please contact the Wages and Labour Costs Statistics Section of the Census and Statistics Department at 2887 5550.
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Since the issue of this press release (for wage and payroll statistics for September 2008) on 29 December 2008, year-on-year percentage change of the nominal and real wage indices of the transport services sector and all selected sectors in September 2008 have been rectified (see Table 1 and text version of Table 1). Some paragraphs in the press release should be revised as follows:
In the 1st paragraph of the press release, the increase of wage index in nominal terms in September 2008 over a year earlier should be 4.4%.
In the 3rd paragraph of the press release, the increase of wage index in real terms in September 2008 over a year earlier should be 4.7%.
In the 7th paragraph of the press release, the year-on-year increases of nominal wage indices observed in all selected major sectors in September 2008 should be ranging from 1.4% to 4.9%.
In the 8th paragraph of the press release, the year-on-year increases of real wage indices observed in all selected major sectors in September 2008 should be ranging from 1.7% to 5.2%.
Also refer to :
(1) Quarterly Report of Wage and Payroll Statistics, Third Quarter 2008
(2) Press release on ˇ§Wage and Payroll Statistics for December 2008ˇ¨
(3) Quarterly Report of Wage and Payroll Statistics, Fourth Quarter 2008
Last updated on 15 April 2009
Overall Wage and Payroll Statistics
According to the figures released today (December 29) by the Census and Statistics Department, the average wage rate for all the major sectors surveyed, as measured by the wage index, rose by 4.0% in nominal terms in September 2008 over a year earlier.
About 65% of the companies recorded increase in average wage rates in September 2008 compared with a year ago. On the other hand, 25% of the companies recorded decrease in average wage rates over the same period. The remaining 10% reported virtually no change in average wage rates.
After discounting the decrease in consumer prices as measured by the Consumer Price Index (A), the overall average wage rate for all the major sectors surveyed increased by 4.3% in real terms in September 2008 over a year earlier.
As for payroll, the index of payroll per person engaged for all the major sectors surveyed increased by 5.2% in nominal terms in the third quarter of 2008 over a year earlier.
After netting out the effect of the increase in consumer prices as measured by the Composite Consumer Price Index, the average payroll per person engaged increased by 0.5% in real terms in the third quarter of 2008 over a year earlier.
The wage rate includes basic wages and other regular and guaranteed allowances and bonuses. Payroll includes elements covered by wage rate as well as other irregular payments to workers such as discretionary bonuses and overtime allowances. The payroll statistics therefore tend to show relatively larger quarter-to-quarter changes, affected by the number of hours actually worked and the timing of payment of bonuses and back-pay.
Sectoral Changes
For the nominal wage indices, year-on-year increases were observed in all selected major sectors in September 2008, ranging from 0.5% to 4.9%.
For the real wage indices, year-on-year increases were observed in all selected major sectors in September 2008, ranging from 0.9% to 5.2%.
The year-on-year changes in the nominal and real wage indices for the selected major sectors from September 2007 to September 2008 are shown in Table 1.
As for the nominal indices of payroll per person engaged, year-on-year increases were recorded in all major sectors in the third quarter of 2008, ranging from 2.4% to 6.2%.
For the real payroll indices, the year-on-year increases in the wholesale, retail and import/export trades, restaurants and hotels sector and the financing, insurance, real estate and business services sector in the third quarter of 2008 were 0.3% and 1.5% respectively. On the other hand, year-on-year decreases were observed in the manufacturing sector, the transport, storage and communications sector, and the community, social and personal services sector, ranging from 0.6% to 2.2%.
The year-on-year changes in the nominal and real indices of payroll per person engaged for selected major sectors from the third quarter of 2007 to the third quarter of 2008 are shown in Table 2. The quarterly changes in the seasonally adjusted nominal and real indices of payroll per person engaged between the third quarter of 2007 and the third quarter of 2008 are shown in Table 3.
Other information
Both wage indices and payroll indices are compiled quarterly based on the results of the Labour Earnings Survey conducted by the Census and Statistics Department (C&SD).
Wage statistics are conceptually different from the payroll statistics. Firstly, wage rate for an employee refers to the sum earned for his normal hours of work. It covers basic wages and other regular and guaranteed allowances and bonuses, but excludes earnings from overtime work and discretionary bonuses, which are however included in payroll per person engaged. Secondly, the payroll index of an industry is an indicator of the simple average payroll received per person engaged in the industry. Its movement is therefore affected by changes in wage rates, the number of hours of work and occupational composition in the industry. In contrast, the wage index of an industry is devised to reflect the pure changes in wage rate, with the number of hours of work and occupational composition between two successive statistical periods being kept unchanged. In other words, the wage index reflects the change in the price of labour. Thirdly, wage index only covers employees up to the supervisory level (i.e. not including managerial and professional employees), whereas payroll index covers employees at all levels and proprietors actively engaged in the work of the establishment. Because of these conceptual and enumeration differences between payroll and wage statistics, the movements in payroll indices and in wage indices do not necessarily match closely with each other.
It should also be noted that different consumer price indices are used for compiling the real indices of wage and payroll to take into account the differences in their respective occupation coverage. Specifically, the Composite Consumer Price Index, being an indicator of overall consumer prices, is taken as the price deflator for payroll of workers at all levels of the occupational hierarchy. The Consumer Price Index (A), being an indicator of consumer prices for the middle to lower income groups, is taken as the price deflator for wages in respect of employees on occupations up to the supervisory level.
Starting from the fourth quarter of 2008, the X-12 ARIMA method will replace the current X-11 ARIMA method for performing seasonal adjustment of the nominal and real indices of payroll per person engaged. The X-12 ARIMA method is an update to the X-11 ARIMA method with enhanced modelling and diagnostic capabilities. The X-12 ARIMA has now been a standard method used by statistical offices in many countries/territories for performing seasonal adjustment of statistical series.
Detailed breakdowns of the payroll and wage statistics are published in the "Quarterly Report of Wage and Payroll Statistics, September 2008". Users can download this publication free of charge at the Website of the Census and Statistics Department (C&SD) (www.censtatd.gov.hk/products_and_services/products/publications/index.jsp). Print version of this publication is available for sale at HK$50 per issue. Purchase can be done in person at the Publications Unit of the C&SD (Address: 19/F Wanchai Tower, 12 Harbour Road, Wan Chai; Tel.: 2582 3025) or through mail order by returning a completed order form which can be downloaded from the C&SD's website (www.censtatd.gov.hk/products_and_services/other_services/provision_of_stat/mail_ordering_of_publications/index.jsp). Print version of this publication is also available for sale online at the Government Bookstore of the Information Services Department (www.bookstore.gov.hk).
For enquiries on payroll and wage statistics, please contact the Wages and Labour Costs Statistics Section of the Census and Statistics Department at 2887 5550.
Ends/Monday, December 29, 2008
Issued at HKT 16:31
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