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Overall Wage and Payroll Statistics
According to the figures released today (September 26) by the Census and Statistics Department (C&SD), the average wage rate for all the major sectors surveyed, as measured by the wage index, rose by 1.1% in nominal terms in June 2006 over a year earlier.
About 53% of the companies recorded some increase in average wage rates in June 2006 compared with a year ago. On the other hand, 35% of the companies recorded some decrease in average wage rates over the same period. The remaining 12% reported almost no change in average wage rates.
After discounting the increase in consumer prices as measured by the Consumer Price Index (A), the overall average wage rate for all the major sectors surveyed dropped by 0.7% in real terms in June 2006 over a year earlier.
As for payroll, the index of payroll per person engaged for all the major sectors surveyed increased by 2.2% in nominal terms in the second quarter of 2006 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 0.1% in real terms in the second quarter of 2006 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 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 almost all the major sectors in June 2006, ranging from 0.6% to 2.0%. Yet for the transport services sector, there was a decrease of 1.7%.
For the real wage indices, there was a marginal year-on-year increase of 0.1% in the financing, insurance, real estate and business services sector. As for all the other sectors, there were decreases ranging from 0.3% to 3.6%.
The year-on-year changes in the nominal and real wage indices for the selected major sectors from June 2005 to June 2006 are shown in Table 1.
As for payroll per person engaged, year-on-year increases were recorded in almost all major sectors in the second quarter of 2006, ranging from 1.1% to 5.0%. Yet for the community, social and personal services sector, a marginal decrease of 0.1% was recorded.
As for the real payroll indices, year-on-year increases were registered in the wholesale, retail and import/export trades, restaurants and hotels sector, the transport, storage and communications sector, and the financing, insurance, real estate and business services sector, ranging from 0.3% to 2.9% in real terms. On the other hand, there were 0.9% and 2.1% year-on-year decreases in the manufacturing sector and the community, social and personal services sector, respectively.
The year-on-year changes in the nominal and real indices of payroll per person engaged for selected major sectors from the second quarter of 2005 to the second quarter of 2006 are shown in Table 2. The quarterly changes in the seasonally adjusted nominal and real indices of payroll per person engaged between the second quarter of 2005 and the second quarter of 2006 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 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 prices are used for compiling the real indices of wage and payroll, taking into account their relevance to the 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 employees 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 workers on occupations up to the supervisory level.
Detailed breakdowns of the payroll and wage statistics are published in the "Quarterly Report of Wage and Payroll Statistics, June 2006". Users can download this publication free of charge at the "Statistical Bookstore, Hong Kong" (www.statisticalbookstore.gov.hk) of the C&SD. Print version of this publication is available for sale at HK$39 per copy. It can be purchased 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 completing and returning an 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), or online at the Statistical Bookstore and the Government Bookstore of the Information Services Department (www.isd.gov.hk/eng/bookorder.htm). Print versions if purchased online are offered at 85% of their original prices.
For enquiries on payroll and wage statistics, please contact the C&SD at 2887 5550.
Ends/Tuesday, September 26, 2006
Issued at HKT 16:15
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