The average wage rate for all major sectors fell 1.6% in nominal terms in March over a year earlier. This was similar to the 1.5% fall in December.

About 48% of companies surveyed reported some decrease in average wage rates in March, over a year earlier, mainly attributable to cuts in basic salaries and guaranteed year-end double pay.

However, 37% recorded some increase in average wage rates over the same period. This was mainly due to retrenchment of lower-paid clerical staff and operatives, leading to a rise in the proportion of relatively higher-paid workers over a year earlier. The remaining 15% reported almost no change in average wage rates.

For the nominal wage indices, year-on-year falls were seen in almost all major sectors in March, ranging from 1.4% to 2.6%. Financing, insurance, real estate and business services was the only sector with a rise in nominal wages - 0.6%.

After discounting the fall in consumer prices as measured by the Consumer Price Index (A), the overall average wage rate for all major sectors surveyed taken together rose 0.2% in real terms in March over a year earlier.

As for payroll, the index of payroll per person engaged for all the major sectors surveyed taken together likewise fell, by 1.7% in nominal terms in the first quarter over a year earlier.