The rise in Bermuda's earning power, driven mainly by international business, slowed down significantly at the start of the global economic crisis, according to the latest Government statistics.

The Department of Statistics' Quarterly Bulletin for the fourth quarter revealed that employment income was $762.6 million in the third quarter of 2008 - up 6.9 percent on the same period in 2007 - but down slightly from $761.6 million in the opening quarter of the year.

But it was the lowest growth for two years, since 1.8 percent in the second quarter of 2006, and well down on the average 12.9 percent increase during 2007.

The figures showed a steady downward trend for international business from $244.8 million the first quarter of 2008 to $206.2 million for the third quarter, while banking, insurance and real estate also declined from $95.3 million to $73.4 million over the same period.

But, bucking this trend was business services, which rose from $69.3 million in the first quarter to $79.5 million in the third quarter and wholesale and retail, up from $54.9 million to $57.8 million during the same time span.

Employees in the public administration and defence sector also took home greater combined pay, rising from $95.6 million to $103.1 million between the first and third quarters of 2008.

Meanwhile, construction and transport and communication sector fluctuated, with the former rising from $21.7 million to $24.1 million between the first and second quarters, before dropping to $22.4 million in the third, and the latter up from $21.7 million to $24.1 million, but down at $22.4 million over the same period.

Compared to the third quarter of 2007, international business employment income was up 7.4 percent, with construction (16.6 percent), business services (12.6 percent) and public administration and defence (10.8 percent) the biggest risers. Transport and communication (-8.2 percent) and hotels and restaurants (-2.4 percent) saw the largest falls in employment income.

The bulletin showed that the number of new businesses registered in Bermuda was down 49.1 percent in the fourth quarter of 2008 on the same period in 2007, but the total on the register at the end of the quarter was up 1.1 percent.

The estimated value of work put in place for construction projects for 2008 were up 32.6 percent for private sector projects compared to the previous year, however, down 28.8 percent for public sector developments during the corresponding period.

The value of work done in the private sector was $353.9 million versus $45 million for the public sector last year. The private sector value remained constant at around $88 million over the four quarters, while public sector work started strong at $12.3 million in the first quarter to $5 million in the fourth quarter during this time.

The majority was accounted for by a 151.7 percent rise in office, shop and warehouse development over 2008, while work on residential (-25.9 percent) and hotels and guest houses (-19.4 percent) projects dropped off last year.