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The following is a transcript (English portion) of the Secretary for Economic Development and Labour, Mr Stephen Ip, speaking to the press on the latest unemployment rate at the Central Government Offices today (June 17):
Stephen Ip: The unemployment rate for the period March to May is 8.3%. The underemployment rate jumped from 3.2% to 3.8%. Compared with February to April, total labour force expanded by around 11 500 to 3.517 million. Total employment contracted by around 2 800. The number of unemployed persons increased to 287 000, while the number of underemployed rose to 135 000. The unemployment rate rose mainly in sectors such as restaurants, hotels, retail, transport, real estate, and business services. As to the underemployment rate, increases occurred mostly in the construction, transport, restaurants and hotels, manufacturing, and education services sectors. The latest figures reflect fuller impact of SARS on the labour market. The consumption and tourism-related sectors were particularly hard hit, where there were increased lay-offs resulting in reduced employment across-the-board.
Reporter: Do you think the public should be prepared to see further rises in the unemployment rate and also do you think the underemployment rate is another factor to worry about?
Stephen Ip: I think the underemployment rate reflects that both the employees and the employers are fully aware of the impact of SARS on the Hong Kong economy. And that is why I think they agree to take no-pay leave, for example, instead of being sacked. This shows that in exceptional situations there needs to be solutions by way of no-pay leave, by way of co-operation between the employers and the employees. I think it is very important.
I think there will continue to be pressure on unemployment. As I said, there will be tens of thousands of graduates leaving school, and they will be looking for jobs in the next few months. Of course, we need more jobs to satisfy the young people leaving school. As I have just explained, the Government has decided to create over 32 000 jobs and training opportunities. In May, we created over 21 000 jobs, not to mention other pre-employment training programmes that will continue to be launched in July and August. I hope all these will help to tide over this difficult period.
(Please also refer to the Chinese portion)
End/Tuesday, June 17, 2003
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