Bermuda's international business sector paid out record compensation of more than a quarter of a billion dollars to its Island workforce in the first three months of this year.

The figure was revealed in first-quarter economic data revealed this week by the Department of Statistics, which otherwise paint a picture of slowing economic activity.

Last year was bumper year for Bermuda's international insurance companies, with a favourable convergence of a lack of catastrophes with rebounding financial markets, leading to hefty profits.

That helped to boost pay and bonuses for many of the Island's international business workers.

According to the Quarterly Bulletin of Statistics, international business employment income totalled $251.86 million in the first three months of the year — up 2.7 percent on the first quarter of 2009 and a record high figure for a quarter.

International business accounted for almost a third of Bermuda's total employment income of $788 million for the quarter.

The 10.7 percent fall in wages paid out by the construction sector compared to the first quarter of 2009 highlighted the industry's contraction since a string of major commercial real estate projects were completed in the first half of last year.

Construction employees took home a total of $41.1 million during the quarter, compared to $46 million in the same period a year earlier and down from $44.5 million in the fourth quarter of last year. It was the lowest construction payroll figure since the third quarter of 2005.

The statistics also show that the value of construction work put in place in the first quarter dropped 61.1 percent year on year. But the figure of $56.4 million marked a significant improvement on the fourth quarter of last year when just $14.1 million was recorded.

Construction activity peaked in the first quarter of 2009, when $145.1 million of work was put in place.

The employment income figures also highlight the continuing shrinkage of the hotel and restaurant sector, which paid out just $14.7 million in first-quarter wages.

The data reflect the loss of about 150 jobs with the closure of the main hotel building at Elbow Beach at the end of November last year.

This was 2.9 percent lower than the same period a year earlier, but the figure has virtually halved since the first three months of 2005.

It also highlights the decline of hotels and restaurants as wage providers in the economy. In the first quarter of this year, the sector made up 1.9 percent of total employment income, compared to 4.9 percent in 2005.

Employment in the wholesale and retail sector held up remarkably well against a backdrop of dismal retail sales.

The sector's payroll totalled $53.7 million — up 2.4 percent year on year and providing 6.8 percent of the Island's total employment income.

Retail Sales Index data for the first quarter indicated that average monthly sales were down almost 10 percent from 2006 levels.

As well as cutting down on spending at home, residents have also brought home fewer goods bought overseas. In fact, the $13.3 million value of overseas purchases was the lowest figure recorded for three years, although this does not include goods bought from abroad over the Internet.