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Following is the transcript (English portion) of the remarks made by the Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, on the latest unemployment statistics at a media stand-up today (September 17):
The latest unemployment rate stood at 5.4%, same as last period, showing signs of stabilisation in the labour market.
The underemployment rate also remained unchanged at 2.4% over the same period.
Although the unemployment rate has remained at 5.4% for three consecutive months, total employment continued to decrease because of cautious business sentiments. Total employment decreased by around 10 000, while the labour force decreased by around 6 900.
The number of unemployed increased by 3 000 to 216 800 and the number of underemployed decreased by around 400 to 88 200.
Increases in the unemployment rate were mainly seen in the accommodation services; arts, entertainment and recreation; and wholesale sectors.
Decreases were more apparent in the construction, warehousing and support activities for transport as well as real estate sectors.
It is important to note that the unemployment rate of the construction sector has seen notable decline for four consecutive months. It dropped by 1 percentage point to 10.1% in June ¡V August this year. The decoration and maintenance sub-sector also decreased markedly by 1.6 percentage points to 12.6%, accumulating a total decrease of 9 percentage points over four consecutive periods. The foundation and superstructure sub-sector fell by 0.9 percentage point to 9.2%. It is clear that the Government¡¦s efforts to create jobs in the construction sector are bearing fruit.
The unemployment rate of the warehousing and support activities for transport sector fell by 0.5 percentage point to 3.8% while that of the real estate sector fell to 4.4%.
With a large number of school leavers and fresh graduates joining the labour market during the summer, youth unemployment remains at a high level. The jobless rate for the 15-19 age group rose to 28.7% in the period May ¡V July, up 4.4 percentage points over the figure of 24.3% for April ¡V June.
For the 20-24 age group, the rate stood at 12.1%, up 1.5 percentage point over the preceding three-month period of 10.6%.
For the 15-24 age group as a whole, the unemployment rate stood at 14.8%, up 2.2 percentage points over the previous period.
With Hong Kong¡¦s overall economic performance improving since the second quarter of this year, the labour market has gradually stabilised. The near term outlook for the labour market conditions will much hinge on the pace of job creation in the economy relative to that in the labour supply. As the pace of business growth remains uncertain, employers are generally quite cautious in recruitment. Coupled with the relatively slow absorption of newcomers into the labour market this year, the unemployment rate is expected to remain high in the near term.
As we all know, unemployment rate is a lagged indicator, any improvement usually lags behind economic recovery.
We will continue to closely monitor the labour market situation.
Reporter: You say that two quarters stablised and would you also .....
Secretary for Labour and Welfare: Obviously, if we look at the figures. There are some very positive indicators if you look at construction in particular. Construction industry for four consecutive months in a row has been coming down and coming down steadily and that is a very telling picture because we are investing heavily in infrastructure and also in renovating buildings, the Operation Building Bright programme. It¡¦s having a stablising effect on the labour market. The reason why the unemployment is still high, particular this time of the year, is because of youth unemployment, school leavers and fresh graduates going into the labour market. But in fact we are seeing early results from the Government¡¦s efforts to boost the economy. Look at the figures. Remember the loan guarantee scheme already ensured continued employment of 230 000 people in the labour market. It is a very important factor to bear in mind.
Reporter: So you are seeing results from the public sector but not from the private sector?
Secretary for Labour and Welfare: The private sector, as I mentioned earlier on, the loan guarantee scheme also propped up SMEs in Hong Kong for 13 000 enterprises benefiting from the programme.
Reporter: It's a government programme?
Secretary for Labour and Welfare: It is a government programme but at least you keep them going, stop bleeding. At the same time, they can then continue to grow and generate employment. It is very important.
(Please also refer to the Chinese portion of the transcript.)
Ends/Thursday, September 17, 2009
Issued at HKT 20:24
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