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SLW on latest unemployment statistics
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     Following is the transcript (English portion) of the remarks by the Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, on the latest unemployment statistics at a media stand-up today (December 17):

Secretary for Labour and Welfare: With the steady revival of the economy, the unemployment situation has further improved with the unemployment figure falling for three consecutive periods. The latest unemployment rate stands at 5.1%, down by 0.1 percentage point from the last round. Underemployment rate slightly went up by 0.1 percentage point to 2.5%.

     I think it is important to note that total employment in this round reverted to a positive increase to the tune of 9,300 as compared with a decrease of 7,200 in the previous round. This is a very important signal. It indicates that the unemployment situation has started to recover, a very important, positive signal coming out. As business activity is expected to pick up during Christmas and the New Year, we expect this will increase the demand for labour and in turn will ease the pressure on unemployment in the near term.

    There was of course some good news around the corner. In fact, in the beginning of this week, we witnessed the commencement of work of the Hong Kong-Zhuhai-Macao Bridge and also the commencement of work on expanding  Disneyland. All these will help create jobs in the construction sector. And in fact the construction sector has witnessed a sustained improvement in the unemployment rate. For the last seven consecutive periods, it has been coming down particularly for the  decoration and maintenance sub-sector. It has actually fallen from the height of 21.8%, now down to 7.7%. So all these indicate that the Government's efforts to create jobs in the construction sector are bearing fruit. The Operation Building Bright project, for example, on refurbishing old buildings, up to now, over the last few months, has created close to 4,500 jobs. And we are talking about every month 30 buildings coming up for renovation. Each building at least employs 20 to 30 jobs. So all these will certainly help improve the situation of the construction sector.

Reporter: You said you see improvements, how likely it sustains over how long a period and can you explain why, despite the improvement in the unemployment rate, the underemployment has not been improved.

Secretary for Labour and Welfare: Underemployment has always been a problem because we are talking about people who want to work longer hours but work is not available. But at the moment, 2.5% is not really significant. The movement is really marginal, I would say, it is insignificant. But the global picture generally is heartening. The fact that we witnessed a positive increase in employment by 9,300 compared with a fall of 7,200 in the previous round; this is very indicative, very telling that the labour market is slowly recovering, beginning to recover. Employers are now more relaxed in terms of recruiting people and more prepared to take on new hands.

Reporter: So you expect to see the situation continue to improve, to climb up?

Secretary for Labour and Welfare: I would expect that in the near term the pressure on unemployment will ease, particularly with Christmas and New Year period generating demand for labour and this will also boost consumption in general and, of course, ease unemployment in the process.

(Please also refer to the Chinese portion of the transcript.)

Ends/Thursday, December 17, 2009
Issued at HKT 19:31

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