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Contents of the Press Release

According to the latest labour force statistics released today (18 September) by the Census and Statistics Department, the seasonally adjusted unemployment rate declined from 8.7% in May - July 2003 to 8.6% (provisional) in June - August 2003, while the underemployment rate fell from 4.2% to 4.0% (provisional).

Comparing June - August 2003 with May - July 2003, decreases in unemployment rate (not seasonally adjusted) were seen mainly in the decoration and maintenance, restaurants/hotels, transport, manufacturing and financing sectors, more than offsetting the increases observed in the import/export trade, real estate, education services, and amusement and recreational services sectors. As to the underemployment rate, decreases were concentrated in the decoration and maintenance, restaurants/hotels, transport, education services, and amusement and recreational services sectors.

Total labour force, at 3 511 000 (provisional) in June - August 2003, was virtually unchanged from 3 510 800 in May - July 2003. Total employment was also little changed, at 3 201 000 (provisional) as against 3 201 500 in the two periods.

The number of unemployed persons (not seasonally adjusted) in June - August 2003, at 309 000 (provisional), was similar to that in May - July 2003, at 309 200. Yet the number of underemployed persons fell by around 7 700, from 148 700 to 141 000 (provisional).

Commentary

A Government spokesman commented that improved business conditions recently had helped to stabilise the unemployment rate and lower the underemployment rate. Of particular note was the strong pick-up in the tourism and related sectors aiding employment, upon the swift return of Mainland visitors and with additional boost from the "individual visit" scheme for facilitating Mainland visitors to come to Hong Kong. With a new batch of fresh graduates and school leavers having entered the labour market, continued improvement in the economy and job creation would be essential to absorb these new entrants substantially into employment.

The spokesman pointed out that in addition to energizing the tourism sector, the introduction and expansion of the "individual visit" scheme for Mainland visitors has helped create more job opportunities for other sectors, notably the retail and catering industries.

He added that the construction industry, which has been badly hit by the recent downturn, would also benefit from the tourism boom. Some 50 000 hotel rooms are under various stages of design or construction, and should be ready for use by 2005. Together, these projects would create some 10 900 construction-related jobs.

"With the construction programme of the Hong Kong Disneyland reaching an advanced stage early next year, more construction jobs would be available", the spokesman said.

"Looking further ahead, an additional 2 000 construction jobs will come on stream when work starts in late 2004 on the International Exhibition Centre at the Hong Kong International Airport".

The spokesman said that there were signs of improvement on the job market front. For example, the number of private sector vacancies registered with the Job Centres of the Labour Department continued on an upward trend. Some 24 600 private sector vacancies were recorded by the Labour Department in August 2003, representing a 13.3% increase over the previous month. These amounted to some 1 000 vacancies per working day - well above the usual daily in-take of 600 to 800 vacancies. Furthermore, many of the newly received vacancies were from new employers, in particular small and medium sized enterprises. This reflected the growing recruitment needs and sentiments of employers.

Further Information

The unemployment and underemployment statistics were compiled from the findings of the continuous General Household Survey.

The survey for June - August 2003 covered a sample of some 24 000 households or 76 000 persons, selected in accordance with a scientifically designed sampling scheme to represent the population of Hong Kong.

Data on labour force characteristics were obtained from the survey by interviewing each member aged 15 or over in the sampled households.

In the survey, the definitions used in measuring unemployment and underemployment follow closely those recommended by the International Labour Organisation.

Detailed analysis of labour force characteristics is given in the report on the General Household Survey which is published four times a year. The next issue of the report covering the quarter July to September 2003 will be available, in both hardcopy and softcopy (in PDF format), for sale at HK$40 by end November 2003. It can be purchased online at the "Statistical Bookstore, Hong Kong" (http://www.statisticalbookstore.gov.hk) or by returning a completed order form which can be downloaded from the C&SD's website (http://www.info.gov.hk/censtatd/eng/prod_serv/forms_index.html). Purchase in person can be made at the Publications Unit of the C&SD (Address: 19/F, Wanchai Tower, 12 Harbour Road, Wan Chai; Tel.: 2582 3025).

Enquiries for more detailed labour force statistics for May - July 2003 can be directed to the General Household Survey Section (2), Census and Statistics Department at Tel: 2887 5506.

End/Thursday, September 18, 2003

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