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Following is the transcript (English portion) of a media session by the Financial Secretary, Mr Henry Tang, this (March 18) afternoon at the lobby of West Wing, Central Government Offices:
Financial Secretary: The latest unemployment figure is 7.2%, which is 0.1% less than the previous period. Underemployment rate is 3.3%, unchanged. Total employment actually has gone up by 9,500 persons, but the total labour force has gone up by 10,000, so basically that explains why. Although there were 9,500 more people who became employed, there are more and more people who are joining the labour force for the first time, or again, simply because they feel that the economy is improving, so they have joined the labour force hoping to find work.
In the medium and the longer term, I feel that unemployment is going to be a continuing challenge. I am quite happy with the mood change for the economy. However, I think the figures are not going to significantly improve in the shorter term simply because there are more and more people who are joining the labour force in view of an improving economy.
Reporter: How long will these figures remain at the current level?
Financial Secretary: It's very hard to say. At this level, I think we may see some volatility because it is possible that more people will decide to join the workforce and although the Labour Department has recorded a 70% increase in vacancies in the last month alone, I expect there will be some volatility, because there will be some skills mismatch.
Reporter: What are these challenges you are talking about?
FS: The challenges are about structural change. We are becoming more and more of a knowledge-based economy and a knowledge-based economy requires people who are of a certain standard, so I think the skills mismatch is going to be a challenge for us.
(Please also refer to the Chinese portion of the transcript)
Ends/Thursday, 18 March 2004
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