In September, Hong Kong's average wage rate across selected industries experienced a significant rise, climbing by 3.6% in nominal terms compared to the previous year, as reported by the Census and Statistics Department. This increase reflects a positive trend in the labor market, with 63% of companies indicating that they have raised average wages, while only 32% reported a decrease. When adjusted for inflation, the average wage rate shows a real growth of 0.6%.
In the third quarter of 2024, the payroll index, which encompasses not just wages but also irregular payments like discretionary bonuses and overtime, noted a nominal increase of 3.3%. Taking inflation into consideration, the payroll per person engaged rose by 0.9%. The wage growth trend is widespread, occurring across all industries, with nominal increases ranging from 3% to 4.2%.
Even after adjusting for inflation, all sectors exhibited positive real wage growth, with increases between 0.1% and 1.3%. Specifically, the payroll per person engaged showed gains from 1.4% to 4.8% across various sectors. However, the retail trade and social and personal services sectors faced declines, recording decreases of 0.6% and 0.9%, respectively. A spokesperson from the government has pointed to the tight labor market as a key driver of ongoing wage growth, suggesting that this trend is likely to persist in the near term.
Nevertheless, factors specific to certain sectors may lead to different outcomes, indicating a complex economic landscape. $HONGKONG50.