The Statistical Analysis on Earnings and Working Hours for Employee in the Construction Industry

Earning and working hour have become a red-hot issue for quite a while among all people, both in and out of the government, in particular recently amidst the sluggishness in all walks of life. Construction industry is known as the catalyst of the entire economy and, as well, the milestone of national competitive edge. In an effort to look into earning, working hour and labor turnover rate, we’d like to take a streamlined analysis on the Employees’ Earning Surveys, in the sector of construction industry, in Taiwan Area, conducted by the Directorate-General of Budget, Accounting & Statistics, Executive Yuan (the Cabinet). The findings so obtained will function as handy grounds on policymaking process in economic construction plans, manpower resources planning and business administration. In the survey, construction industry is classified into such sub-lines of basic civil structure, highway & street construction, building construction, mechanics, electricity & pipelines, building furnishing and other construction lines. In the year 2000, the employee earnings, working hours and turnover in Taiwan’s construction industry are broken down as follows:

I. In 2000, the entire construction industry hired 447,000 employees every month on average, NT$39,000 monthly earning on average, 187.8 working hours per month on average.
In 2000, the entire construction industry in Taiwan hired 447,000 employees every month on average, NT$39,000 monthly earning on average, 187.8 working hours per month on average, including 179.7 hours in regular work, 8.1 hours overtime, 3.12% in accession rate and 3.55% in separation rate, 0.43% in net accession rate.

Among all employees hired in the industry, up to 145,000 employees or 32.4% were hired in basic civil structure, highway & street construction as the highest rate; 95,000 or 21.3% in mechanics, electricity & pipelines as the second highest rate; 93,000 or 20.7% in building construction industry as the third and 46,000 at 10.2% in building furnishing industry and other construction lines as the least sector. Among the lines, those working in the mechanics, electricity & pipelines industry made the highest income, NT$43,000 per month on average; to followed by NT$39,000 per month in the basic civil structure, highway & street construction industry; NT$37,000 in the building construction industry and NT$35,000 in the building furnishing industry and other construction lines as the lowest. In terms of average working hours, those in the basic civil structure, highway & street construction industry had the most working hours at 196.4 hours per month, followed by 191.2 hours in the building construction industry; then 181.6 hours in the mechanics, electricity & pipelines industry and 180.3 hours at the building furnishing industry as the least.

The average net accession rate was at -0.54% and in negative figures in all lines, in particular basic civil structure, highway & street construction industry at -0.84%, suggesting that in line with the prolonged slowdown, many construction firms have quit the market. This was especially significant in the basic civil structure, highway & street construction industry wherein eight out of every thousand have quit the line.

II. On average, the construction industry was in relatively low average earnings and long average working hours. For the past year, the earnings in real-term increased 1.3% and working hours increased 1.24%. Compared with growth of other lines, the average earnings were in the medium growth while average working hours were relatively high in growth.

In the year 2000 in the construction industry, the average monthly earning came to NT$39,000, growing 2.16% from the preceding year, due primarily to the raise and increasing working hours. The average working hours came to 187.8 hours, rising 2.3 hours or 1.24% over 185.5 hours of the preceding year. The average hourly wage came to NT$207, growing 1% over NT$205 of the preceding year’s. After commodity price related factors were taken away, the substantial earning growth came to 1.3%.

Compared with other lines, the construction industry showed NT$39,000 average earning, ranking third lowest, next only to Trade and Eating-Drinking Places and Manufacturing Industry, more than NT$50,000 per month less than the highest line of Electricity, Gas and Water Industry, suggesting that the construction industry was a line of low earnings. The average working hours came to 187.8 hours, 11 hours less than Manufacturing Industry—the line of the most working hours and 13.6 hours more than Finance, Insurance Industry—the lines of less working hours. To put it in more understandable terms, construction industry is on average working hours, and on average earning raise as well when compared with other lines. The increase of average working hours was next only to Business Service Industry at 1.45%, suggesting that the construction industry had greater growth in working hours.

III. The number of employees hired in the construction industry has grown in the red since 1996, down 3.7% on average every year. Except the year 1997, the separation rate has always outnumbered the accession rate since 1995. The building furnishing industry has shown mixed ups and downs while number of employees hired in all other lines has shown signs of drop.

Over the past decade, the total number of employees hired in the construction industry increased from 380,000 in 1990 up to the peak of 540,000 in 1995. Since then, the number of employees has grown in negative figures, down to 447,000 in 2000. Over the past five years, the number of employees in the lines has dropped 3.7% on average every year.

By respective lines, the employees in the basic civil structure, highway & street construction industry was growing year-by-year during 1990~1994, up to the peak of 205,000 in 1994, and growing in the red since then, down to merely 145,000 in 2000, dropping 5.6% on average every year. Employees hired in the building construction industry numbered 88,000 in 1990 and grew stably year-by-year up to 123,000 in 1994, and then growing in negative figures since then, down to an insignificant number of 93,000 in 2000, dropping 4.6% on average every year. The mechanics, electricity & pipelines industry hired 73,000 employees in 1990 and then grew year-by-year up to 122,000 in 1995. The growth was in the red in 1996, and slightly up at 1.2% in 1997 and then decreased year-by-year since then, down to merely 90,000 in 2000. Since 1996, the hired employees have been down 4.8% on average every year. The building furnishing industry hired 25,000 employees in 1990 and increased year-by-year up to the 49,000 peaked in 1995. The number has come down since 1996 except a slight rise in 1998 and 2000. The number came to 46,000 in 2000.

Until 1995, the accession rate had outnumbered separation rate on average. Except 1997 in which the construction industry saw 0.16% net accession rate, the separation rate has always outnumbered accession rate, or negative in net accession rate, suggesting the listless construction industry, forcing quite some employees to quit the line. Among all lines in the year 2000, the mechanics, electricity & pipelines industry and basic civil structure, highway & street construction industry, building construction industry showed 4.04% and 3.85% separation rates respectively as the highest and second highest, and the net negative value in next accession rate as well, suggesting that these two lines have undergone the worst stagnancy.

IV. Among all the lines in 2000, basic civil structure, highway & street construction industry registered the highest growth rate in real-term at 3.14%, outshining all other lines which were merely 2% or less.

In 1990, the average earning of employees on payroll of the construction industry came to NT$25,000. In the subsequent decade, the earning came up year-by-year to NT$39,000 in 2000. Notwithstanding the rising average earning, after commodity price rising factor was removed, the growth rate in real-terms until 1993 was merely 4%~10%, and –1%~–2% during 1994~1996. Since 1997, though growing in positive figure, the growth rate has been merely 1%~3%. Judging from average growth rate in real-terms, one can tell that the average earning grew below 1% in the basic civil structure, highway & street construction industry in 1997 and 1998; 2.11% in 1999 and 3.14% in 2000, as the highest growth rate among all sectors of the construction industry. While the earnings grew in line with the rising working hours, the average hourly pay remained unchanged at NT$198.5. The building construction industry and mechanics, electricity & pipelines industry showed mixed figures in growth, at –0.3% and –1% respectively in 2000. The building furnishing industry showed negative in average earning growth in 1994. Except that year, it was growing in positive figures every year, at 10.5% as the highest in 1997 and at 1.7% in 2000.

V. The average working hours have come down year-by-year, and even down to 185.5% hours per month in 1999, due to the government policy to enforce two-day weekend policy. All sectors in the industry have been in decline in average working hours except an insignificant rise shown in basic civil structure, highway & street construction industry over the past two years.

Employees hired in the construction industry were working 190.5 hours on average per month in 1990. The working hours have come up every year at 195.3 hours peak in 1994. In recent years amidst mounting labor awareness and government policies, the average working hours have come down ever year since 1995, in particular during 1998 and 1999 in which the average working hours plummeted following the government policy of five-day workweek, down to merely 185.5 hours in 1999. In 2000 with heavy outgoing rate amidst the widespread slowdown, the number of employees hired in the line came to the rock bottom and the average working hours slightly restored to 187.8 hours. In terms of respective lines, the average working hours in the basic civil structure, highway & street construction industry have dropped since 1995, to the lowest point of 186.3 hours in 1998, slightly up to 196.4 hours in 1999 and 2000. The working hours in the building construction industry came up every year, to 211.9 hours per month on average in 1997 and have since then come down every year, to 191.2 hours of the current year. The average working hours in the mechanics, electricity & pipelines industry have since 1995 come down to 181.6 hours of the current year. The average working hours in the building furnishing industry have shown mixed growth, at 184.6 hours peaked in 1995, fluctuating around 180 hours since 1996, at 180.3 hours of the current year.

VI. Of the payroll, regular pay accounts for 80.8% and irregular pay 9.2%. Overtime pay accounts for 36.0% of irregular pay. The mechanics, electricity & pipelines industry shows the highest regular and irregular pay and building construction industry shows the highest overtime pay.

Salaries received by workers higher in the construction industry include regular and irregular pay. In 2000, the regular pay accounted for 90.8% and irregular pay 9.2% while overtime pay accounted for 36.0% of irregular pay. In all the lines, the mechanics, electricity & pipelines industry shows the highest regular pay NT$38,000 per employee per month, followed by those in the basic civil structure, highway & street construction industry NT$35,000; then building construction industry NT$34,000. The building furnishing industry showed NT$32,000 as the lowest. In terms of irregular pay, the mechanics, electricity & pipelines industry shows the highest amount NT$4,400 per month, followed by those in the building construction and the basic civil structure, highway & street construction industry NT$3,700 and then the building furnishing industry NT$2,900 as the lowest. In the aspect of overtime pay, the building construction industry showed the highest figure at NT$1,800, then the basic civil structure, highway & street construction industry NT$1,600. The building construction industry holds the highest rate of overtime pay out of irregular pay at 49.3%; followed by the basic civil structure, highway & street construction industry at 44.5%. The mechanics, electricity & pipelines industry holds the least at 24.2%.

VII. Of employees hired in the construction industry, native workforce accounts for 92% while foreign workers 8%. Foreign workers receive NT$20,372 on average each, NT$8,038 down from native counterparts.

The government in Taiwan permitted hiring of foreign workers in October 1989 to solve labor shortage in the Fourteen Major National Projects and Six-year National Constructions, primarily for the manufacturing and construction industries. In 2000, the construction industry hired a total of 37,001 foreign workers, accounting for 8.3% of the total workforce. Native workers numbered 409,747, or 91.7%. In recent years, foreign workers have accounted for 7%~10%. In 2000, foreign workers came down 18.6% from the preceding years while native workers down 1.8% from the preceding years.
In 2000, employees hired in the construction industry received NT$38,893 monthly pay on average each while foreign workers NT$20,372 each (NT$15,918 non-regular pay, overtime pay and else NT$4,454). Compared with native counterparts less than two years in seniority at NT$28,410, foreign workers’ average earning was NT$8,038 each. Compared with the preceding year, native workers received a 5.8% raise while foreign workers underwent 1.3% drop from the preceding years.