Introduction:
According to recent data released by the Directorate-General of Budget, Accounting, and Statistics (DGBAS), Taiwan’s median annual earnings showed their slowest growth in three years, rising by just 1.22% in 2023. Employees in the industry and service sectors had a median income of NT$525,000 (approximately US$16,155), reflecting the economic challenges that influenced wage growth across various sectors. The report also highlighted a concerning trend in the wage disparity, as the earnings ratio between the highest and lowest earners reached the lowest point since the DGBAS began tracking this data in 2012.
Overview of Median Earnings in Taiwan for 2023
In 2023, Taiwan’s median earnings grew by just 1.22% compared to the previous year, signaling a slowdown in income growth. Here’s a breakdown of the key statistics:
- Median Earnings: NT$525,000
- Average Earnings: NT$701,000
- Earnings Growth: 1.22% increase in median earnings
- Slowest Growth: Recorded as the lowest growth in three years.
The data reflects significant differences between sectors and gender, which contributed to the overall trend of slow wage growth.
Sectoral Differences in Earnings Growth
The growth in median earnings varied significantly between different sectors of the economy. Employees in the service sector saw increased earnings due to the rebound in domestic demand post-COVID-19. On the other hand, the manufacturing sector struggled with economic slowdown, decreasing orders, and staff reductions, which led to slower wage growth.
Service Sector Recovery:
- Post-Pandemic Recovery: Earnings in the service sector increased as consumer demand in areas like retail, hospitality, and healthcare improved.
- Sector Growth: The recovery in demand helped raise earnings despite overall economic uncertainty.
Manufacturing Sector Challenges:
- Slowing Economy: The manufacturing industry faced considerable economic pressure, including destocking and decreasing orders from key markets, contributing to slower earnings growth.
- Staff Reductions: The decline in manufacturing jobs also affected the overall wage figures in the sector.
Wage Disparity in Taiwan: Earnings Gap Widens
The DGBAS report revealed a troubling trend regarding the earnings ratio between the highest and lowest earners. The ratio of earnings between the first and ninth deciles for 2023 was 4.05, the highest recorded since the DGBAS started tracking this indicator in 2012.
- First Decile: Represents the earnings of the bottom 10% of workers.
- Ninth Decile: Represents the earnings of the top 10% of workers.
In 2023, the ninth decile earnings in the manufacturing sector decreased by 0.15% to NT$1.279 million, while the first decile earnings in the service sector increased by 3.72%, reaching NT$316,000.
Impact of Economic Conditions on Earnings
- Manufacturing Sector: Economic challenges like reduced bonuses and lower productivity led to a shrinking gap in the manufacturing sector.
- Service Sector: Rising domestic demand boosted lower-tier earnings in the service sector, contributing to a widening earnings disparity.
Gender Wage Gap in Taiwan: Male Employees Earn More Than Female Counterparts
Another significant finding from the DGBAS report was the gender-based wage gap. The median earnings of male employees in Taiwan were reported at NT$561,000, while female employees earned a median of NT$492,000. This indicates a disparity in earnings that continues to affect the workforce, despite ongoing efforts to promote gender equality in employment and wages.
DGBAS Insights and Analysis
A DGBAS official commented on the findings, explaining that while the increase in median earnings was slower than expected, the differences between sectors can largely be attributed to the economic conditions of 2023. The official also emphasized that the earnings gap is reflective of differing economic dynamics in Taiwan’s primary industries.
- Service Sector: Aided by post-pandemic recovery, earnings growth was seen in sectors like retail and healthcare.
- Manufacturing Sector: Faced with slowdowns, declining orders, and cuts in bonuses, leading to reduced wage growth.
Earnings Breakdown by Sector and Gender
| Category | 2023 Earnings (NT$) | Growth Rate | Key Factors |
|---|---|---|---|
| Median Earnings (Industry & Service Sectors) | NT$525,000 | +1.22% | Slow growth due to economic pressures and post-pandemic recovery |
| Average Annual Earnings | NT$701,000 | +0.71% | Overall increase, though slower than previous years |
| Manufacturing Sector | NT$525,000 | Slower Growth | Economic slowdown, destocking, and fewer orders |
| Service Sector | NT$525,000 | Positive Growth | Increased domestic demand, post-pandemic recovery |
| Male Employees | NT$561,000 | +1.00% | Gender disparity in earnings persists |
| Female Employees | NT$492,000 | +1.50% | Continued wage gap in favor of male employees |
Frequently Asked Questions (FAQs)
1. What does the “median earnings” figure represent in Taiwan’s 2023 report?
The median earnings figure represents the middle point of annual earnings in Taiwan, where half of the workers earn more and half earn less. In 2023, the median for employees in the industry and service sectors was NT$525,000.
2. Why was the earnings growth in Taiwan the lowest in three years?
The slow growth can be attributed to various economic challenges, including slowing economic conditions, decreased orders in the manufacturing sector, and lower bonuses paid out to employees.
3. Which sector showed the most improvement in earnings in 2023?
The service sector showed improvement in earnings, driven by a post-COVID recovery in domestic demand. This helped increase median wages despite the economic slowdown in other areas.
4. How did the earnings gap between the highest and lowest earners change in 2023?
The earnings ratio between the first and ninth deciles reached 4.05, the highest level since 2012, reflecting a growing wage disparity between the highest and lowest earners.
5. What is the gender wage gap in Taiwan in 2023?
The median earnings for male employees was NT$561,000, while female employees earned NT$492,000, highlighting a continuing gender wage gap in Taiwan’s workforce.
Conclusion:
In conclusion, Taiwan’s earnings growth in 2023 showed signs of slowdown, particularly in the manufacturing sector, while the service sector benefited from the recovery in domestic demand. Despite the overall growth being the lowest in three years, Taiwan’s economy remains in a stable state, with a gender wage gap and earnings disparity continuing to affect the workforce. Moving forward, both economic conditions and sectoral recovery will play a key role in shaping Taiwan’s wage growth.
