The average wage rate, as measured by the wage index, grew 2% in nominal terms in December over the same month last year, the Census & Statistics Department says.

December saw 56% of companies record increases in average wage rates, while 29% saw falls. The remaining 15% reported virtually no change.

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 rose 0.1% in real terms.

The index of payroll per person engaged for all the major sectors surveyed grew 4% in nominal terms in the fourth 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 rose 1.8% in real terms in the fourth quarter of 2006 over a year earlier.

Wage indices

For the nominal wage indices, year-on-year increases were observed in all selected major sectors in December, ranging from 0.4% to 6.1%.

For the real wage indices, year-on-year increases were registered in the manufacturing sector, the financing, insurance, real estate and business services sector, and the personal services sector, ranging from 1.2% to 4.2% in real terms.

Year-on-year decreases ranging from 0.5% to 1.5% were recorded in the wholesale, retail and import-export trades, restaurants and hotels sector and the transport services sector respectively.

As for the nominal indices of payroll per person engaged, year-on-year increases were recorded in almost all major sectors in the fourth quarter, ranging from 0.8% to 6.3%.  Yet for the community, social and personal services sector, a marginal year-on-year decrease was observed.

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 3.3% to 4.1% in real terms.