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The following is the transcript (English portion) of a media session by the Financial Secretary, Mr Henry Tang, on the latest unemployment rate this (August 19) afternoon at the West Wing Lobby, Central Government Offices:
Financial Secretary: The seasonally adjusted unemployment rate remained at 6.9% and the seasonally adjusted underemployment rate maintained at 3.5%. The total employment has reached another historical high. The total employment is now at 3 288 000 people. In the past twelve months, owing to economic recovery and effects of CEPA, we have created about 100 000 new jobs and this is a very significant number. But, the total labour force also has a very significant increase, the total labour force is also a historical new high at 3 536 000 people. However, the labour market still appears to be healthy as the Labour Department is still receiving over a thousand new vacancies (from the private sector) everyday. Although the market has improved, sentiment has improved, we are remaining cautious because I believe the structural readjustment of our economy and the employment situation remain very challenging.
Reporter: Will the unemployment rate still be under pressure in the upcoming season?
Financial Secretary: This remains unchanged from last month after a downward trend. I believe partly it is because our labour participation rate has shown a marked increase during this period compared with the same period last year. Our view is that, because of the improved economy, more people are now coming back to the job market looking for work, thereby contributing to this largest ever workforce in our history.
Reporter: Any other measures to readjust the overall salary basis? Is the Government going to do more?
Financial Secretary: Following what the Chief Executive announced last time regarding some of the wages that we will from now on start to pay, we will remain vigilant, we will keep under close observation the trends of wages. Following the economic recovery, we believe that there will be certain relaxation in wage adjustments. However, we are still maintaining that the market knows best and that the market will lead. But on the other hand, it is our responsibility that we will watch closely the trends to ensure that wages are paid to government employees in a fair manner.
Reporter: How will the Bank of China incident affect Hong Kong's image as an international financial centres? And what will the Government do?
Financial Secretary: The Bank of China incident will not affect Hong Kong's image as an international financial centre. We have first-class regulatory agencies, our system is transparent and we enforce our regulations rigorously. We will continue to enhance the standard of our regulatory agencies and also the standard of corporate governance as well as other issues that are associated with or part and parcel of an international financial centre.
Reporter: The economic summit that you will be holding, can you give us any details on this?
Financial Secretary: We will be holding an economic summit on Monday. The purpose is to examine our present strengths and to look for ways to build on those strengths. It will be open to the media, so we welcome you to come.
Reporter: Who have you invited?
Financial Secretary: I think we have published the list already.
(Please also refer to the Chinese portion of the transcript)
End/Thursday, August 19, 2004
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