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5.
Employment in the manufacturing sector fell by more than 2% in the second quarter of 1974, bringing the drop in manufacturing employment during the first half of the year to 35,000, or close on 6% of the industrial labour force. The decline was particularly marked in textiles, clothing and plastics industries (which are among Hong Kong's leading export earners); employment in the electrical appliances, electronics, scientific instruments and allied industries has on the other hand remained fairly steady. Employment in the service industries has also held up, though some deterioration has probably occurred since May.
Export Trade
6. During the 12-month period to the end of June 1974 (the latest period for which detailed figures are available), Hong Kong's domestic exports increased, in quantitative terms, by an estimated 8%. This compares with an increase of about 3% over the corresponding period in 1972/73. The overall export results until June were therefore
comparatively satisfactory. There are reports of increases in textile orders for delivery to Europe and the United States this winter, which appears to bear out the cautious optimism reflected in a recent survey of this important branch of Hong Kong's export industry.
The
7. The trade figures for October, however, were decidedly gloomy and seem to confirm earlier pessimistic forecasts regarding Hong Kong's vulnerability to any general decline in world economic activity. value of Hong Kong's domestic exports fell by HK$ 275 million to HK$ 1,625 million, a decrease of 14.5% over October 1973. At the same time, the value of imports also declined, dropping by HK$ 548 million or 18.3% in comparison with the figure for October 1973.
8.
The following table gives a list of comparative figures:-
CONFIDENTIAL
/October 1974.