Inflation cuts real wages from January to May for the first time in six years

Taipei, July 11 (CNA) Taiwan’s real average base salary declined year-on-year from January to May for the first time since 2016, mainly due to soaring consumer prices in the Executive Yuan General Bureau. (DGBAS) said on Monday.

Taiwan’s January-May average salary increased 2.83 percent on a nominal basis to reach NT $ 44,252 (US $ 1,483), but these gains were 3.04 percent of the consumer price index (CPI) for the same period. Damaged by the increase. Chen Hui-hsin of the DGBAS Census Bureau said at a press conference.

Meanwhile, according to DGBAS, overall average monthly salary (including regular wages and non-regular wages such as overtime and bonuses) increased by 3.63 percent nominally to NT $ 62,736.

DGBAS also began to feel the full power of the economic headwinds caused by COVID-19 in domestic demand-oriented industries, reducing the total number of employees in the industry and services sector by 8,000 between April and May. It reported that it reached 81.42 million people. Said.

The number of employees in the accommodation and catering sector fell by 9,000 from April to May, but average nominal wages in the sector fell 1.52% month-on-month.

Employment in the wholesale and retail sector also declined month-on-month, with 5,000 workers leaving the sector and average nominal wages falling 7.1%.

However, according to Chen, the manufacturing industry remained strong, with 6,000 workers added between April and May.

Regarding changes in the labor market last year, Mr. Chen said that Taiwan’s national Level 3 COVID-19 alert in May and June last year reduced the number of employees hired by 150,000 in two months. Said.

However, as the epidemic slowed, the cumulative number of employees increased by 150,000 from July to December 2021. As a result, the employment level at the end of last year has almost returned to the level in April last year. ..

Chen noted that due to seasonal factors, temporary termination of work earlier this year, and a surge in COVID-19, the current number of employees is still slightly below 8.17 million in April last year. ..

Regarding changes in employee numbers and salaries in June, Mr Chen said it would be difficult to get a clear outlook due to the direction of the domestic COVID-19 pandemic and the uncertainty of global economic fluctuations. ..