*********************************************************
Contents of the Press Release
According to the latest labour force statistics released today (May 20) by the Census and Statistics Department, the seasonally adjusted unemployment rate increased from 7.5% in January - March 2003 to 7.8% (provisional) in February - April 2003. The underemployment rate also increased, from 2.9% to 3.2% (provisional) over the same periods.
Comparing February - April 2003 with January - March 2003, the unemployment rate (not seasonally adjusted) rose across many major economic sectors, including the construction, restaurants and hotels, wholesale/retail, manufacturing, business services, real estate and transport sectors. As to the underemployment rate, increases occurred largely in the transport, restaurants, retail, manufacturing, and decoration and maintenance sectors.
Total labour force rose by around 3 500, from 3 503 500 in January - March 2003 to 3 507 000 (provisional) in February - April 2003. Yet total employment decreased by around 10 700, from 3 243 700 to 3 233 000 (provisional) between the two periods.
The number of unemployed persons (not seasonally adjusted) increased by around 14 200, from 259 800 in January - March 2003 to 274 000 (provisional) in February - April 2003. Concurrently, the number of underemployed persons increased by around 12 300, from 100 700 to 113 000 (provisional).
Commentary
A Government spokesman noted that both the unemployment and underemployment rates went up in February - April 2003, mostly reflecting the adverse impact of the spread of Severe Acute Respiratory Syndrome (SARS) since mid-March. While decreases in employment were observed in many major economic sectors, including in particular construction, restaurants and hotels, and manufacturing, there were also increased incidents of employees being temporarily suspended from work or asked to take no-pay leave, thereby leading to an increase in underemployment. The impact of SARS on the affected sectors would continue to be reflected in both the unemployment and underemployment rates in the near term.
In the light of the economic impact of SARS, the Government has rolled out a package of relief measures costing some $11.8 billion to help the community tide over this difficult period. Within the package are five job creation and training initiatives costing $432 million. Together, they will create over 21 000 temporary employment and training opportunities over the next few months.
Among these initiatives is the $150-million Skills Enhancement Project, which will provide training places for 10 000 unemployed and underemployed workers in the hotel, tourism, retail and catering industries for a period of two months. The project aims to enable employees in the affected sectors to make the best use of their time to enhance themselves by providing skills improvement and upgrading courses, thereby further equipping them for future challenges in their career. A special allowance of $4 000 per month will be provided to all trainees. The programme is now open for application and courses will start on 2 June.
Other employment-related relief measures include :
* a $150-million project to hire 3 000 temporary cleansing workers to improve environmental hygiene and clean up the blackspots throughout the territory;
* a $102-million programme to recruit 4 500 temporary workers to carry out free household cleaning and minor household repairs for the elderly and vulnerable groups; and
* a $30-million incentive scheme to further promote the service of 4 000 local domestic helpers.
The spokesman pointed out that the employment-cum-training package not only would create short-term job opportunities to ease unemployment, it would also foster community building and social cohesion, help clean up the territory and turn the adversity caused by SARS into an opportunity for skills enhancement and development for employees in the worst hit sectors.
Further Information
The unemployment and underemployment statistics were compiled from the findings of the continuous General Household Survey.
The survey for February - April 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 January to March 2003 will be available by end May 2003. This report and other publications of the Census and Statistics Department can be purchased in person from:
(i) Government Publications Centre, Ground Floor, Low Block, Queensway Government Offices, 66 Queensway, Hong Kong (Tel.: 2537 1910); or
(ii) Publications Unit of the Census and Statistics Department, 19th Floor, Wanchai Tower, 12 Harbour Road, Wan Chai, Hong Kong (Tel.: 2582 3025).
Internet users may purchase the publications online at the "Statistical Bookstore, Hong Kong" (Address: http://www.statisticalbookstore.gov.hk).
Enquiries for more detailed labour force statistics for January - March 2003 can be directed to the General Household Survey Section (2), Census and Statistics Department at Tel: 2887 5506.
End/Tuesday, May 20, 2003
NNNN
