TAIPEI (Taiwan News) — Real wages in Taiwan have decreased for the first time in seven years according to government data released on Monday (June 12).

While the average wage of NT$45,363 (US$1,474) in April represented a nominal increase of 2.27% compared to 2022, the government comptroller showed the figure represented a decrease of 0.16% in real terms, per CNA. Chen Hui-hsin (陳惠欣), deputy director of the DGBAS Census Department, said the negative price growth was mainly the result of high inflation, a decline in exports, and a general economic slowdown.

The office noted that inflation was down slightly in May to 2.02%, from 2.35% in April. Taiwan’s inflation rate reached a 14-year high in June 2022 when it rose to 3.59%. 

Despite the overall decline in wages, Chen said that data from the service sector showed wage increases, driven by increased demand for tourism as the economy recovers from the pandemic. In the first four months of 2023, salaries for those working in accommodation industries and passenger transport industries increased by more than 10%.

Statistics also showed smaller employment levels, with 5,000 fewer people employed in manufacturing and 3,000 fewer people in service industries compared to 2022.