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Contents of the Press Release
According to the latest labour force statistics released today (July 17) by the Census and Statistics Department, the seasonally adjusted unemployment rate increased from 8.3% in March - May 2003 to 8.6% (provisional) in April - June 2003. The underemployment rate also increased, from 3.8% to 4.3% (provisional) over the same periods.
Comparing April - June 2003 with March - May 2003, the unemployment rate (not seasonally adjusted) rose more noticeably in the restaurants/hotels, wholesale/retail trades, transport, and amusement and recreational services sectors. As to the underemployment rate, increases were observed mostly in the construction, transport and hotels sectors, and to a lesser extent also in the restaurants, wholesale/retail trades and manufacturing sectors.
Total labour force increased by around 6 500, from 3 516 500 in March - May 2003 to 3 523 000 (provisional) in April - June 2003. Yet total employment decreased by around 6 200, from 3 229 200 to 3 223 000 (provisional) between the two periods.
The number of unemployed persons (not seasonally adjusted) increased by around 12 700, from 287 300 in March - May 2003 to 300 000 (provisional) in April - June 2003. Concurrently, the number of underemployed persons went up by around 16 000, from 135 000 to 151 000 (provisional).
Commentary
A Government spokesman noted that both the unemployment and underemployment rates rose visibly further in April - June 2003. The increase was again concentrated in the tourism and local consumption-related sectors, reflecting the continued impact of the Severe Acute Respiratory Syndrome (SARS) on the labour market. Also, there was a marked rise in unemployment among younger persons, possibly due to the increased entry of fresh graduates and school leavers into the labour force.
The spokesman added that although the SARS had come under control and there were signs of gradual revival in overall business activity more recently, employers generally were still cautious about staffing. The new batch of fresh graduates and school leavers are also adding to the labour supply. In view of these developments, it is likely that the unemployment rate will remain high in the near term.
To enhance the employability of our youth and to ease youth unemployment, the Government has, as part of the $715-million Enhanced Employment Measures announced in June 2003, created some 8 350 short-term jobs and increased the number of places under the Youth Pre-employment Training Programme (YPTP) from 12 000 by 6 000 to 18 000. Together with the 5 000 places already earmarked under the Youth Work Experience and Training Scheme (YWETS) for 2003/04 and the 2 000 places under the Graduate Employment Training Scheme, there will be altogether 33 350 employment/training opportunities for youths this summer. Recruitment for the short-term jobs is underway and the new recruits are expected to start work next month. A joint enrolment exercise for YPTP and YWETS will take place from 26 July to 18 August.
Apart from the 33 350 openings for youths, there are also some 39 000 short-term employment/training opportunities created for other age groups under the two employment-related relief packages announced by the Government in May and June 2003. So far, 16 500 people have already started work/training.
With the removal of Hong Kong from the list of SARS affected areas by the World Health Organisation, there are signs that business in some sectors like tourism, retail and catering are picking up. The spokesman added that Government would continue its efforts to revitalize the economy which will help improve the employment situation in the long term.
Further Information
The unemployment and underemployment statistics were compiled from the findings of the continuous General Household Survey.
The survey for April - June 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 April to June 2003 will be available by end August 2003. This report and other publications of the Census and Statistics Department can be purchased in person from 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 March - May 2003 can be directed to the General Household Survey Section (2), Census and Statistics Department at Tel: 2887 5506.
End/Thursday, July 17, 2003
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