Jan-June average regular wage growth hurt by inflation

TAIPEI, Aug 13 (CNA) Average real regular wages fell for the first time in six years in the first half of this year, according to the Directorate General of Budget, Accounting and Statistics (DGBAS). this week.

According to data compiled by DGBAS, nominal regular wages before inflation adjusted for the period from January to June rose 3.02% year-on-year to TWD44,262 (US$1,475), the highest since 2001.

However, data show that the average real regular wage, adjusted for inflation, fell by 0.11% year-on-year to NT$41,452 over the six months.

According to DGBAS, the average nominal monthly income, which consists of regular wages and non-regular wages such as overtime and bonuses, increased by 3.52% year-on-year to NT$61,085 during this period.

However, DGBAS added that the average real monthly income for the first half was only NT$57,206, up 0.38% year-on-year.

Chen Huixin, Deputy Director of the DGBAS Census Bureau, said that for many months since October 2021, while average real regular wages have risen more than 2% year-on-year, growth has slowed, most notably in the domestic sector. of consumer prices (CPI). ) growth rate he exceeded 3% in March 2022, and CPI rose 3.27% year-on-year.

CPI rose 3.59% year-on-year in June, and inflation in the first half of this year reached 3.13% year-on-year.

However, the rate of decline in average real regular wages has narrowed from -0.2 percent year-on-year in the first five months of the year to -0.11 percent in the first six months of the year, Chen said.

According to the DGBAS, since 2011 Taiwan’s average real regular wage has declined nine times year-on-year in the first half, with the largest drop of 2.86% in the first half of 2009.

The latest drop of 0.11% is the second-lowest after the 0.07% drop in the first half of 2003, according to DGBAS.

Cheng said business activity in Taiwan showed signs of improvement in June, boosting wages and employment numbers as concerns over COVID-19 cases among indigenous peoples abated.

According to DGBAS, the total number of employees in the industrial and service sector increased by 1,000 or 0.01% from the previous month to about 8.142 million at the end of June.

Taking the lodging and catering industry as an example, the number of employees in the industry fell by 5,000 from the previous month in June, compared with a decrease of 10,000 in May, according to DGBAS.

According to DGBAS, the wholesale and retail sector performed even better, with job numbers up 3,000 from the previous month in June, compared to a drop of 4,000 in May.

In the first half of this year, the monthly average number of individuals employed in the industry and services sector was 8.15 million, an increase of 18,000 or 0.23 percent over the previous year.

Over the past six months, according to the DGBAS, the number of employees in the medical/social work and manufacturing sectors increased by 13,000 and 7,000 respectively from the previous year, while the number of employees in the arts/entertainment and leisure industries decreased by 6,000. did. .