7. There has thus been an increase in the HK$ value of non-US$ foreign currency deposits with banks, and an incentive to convert HK$s into such currencies. This, and a somewhat higher interest rate on US$ deposits, has led the increase in the HK$ component of the widest definition of the money stock (M3) to grow by 2.5% during the quarter, considerably lower than the M3 measure including foreign currency, which grew by 5.1% (HK$ M3 is slightly under half of total M3).
8.
After a long period of stagnant demand, bank lending appears to be picking up slowly. Total loans outstanding grew by 4.4% during the quarter, with those financing Hong Kong's visible trade growing by 3.3%. Loans for use in Hong Kong grew by 2.4%, this overall figure made up of the following sectors:
Manufacturing
Wholesale and retail trade
Building, construction and property development
UNEMPLOYMENT
9.
+7.4% +9.9%
-5.3%
Definitions of un- and under-employment have been changed to conform to new International Labour Organisation criteria. This change has had marginal effects, and unemployment remains low, though underemployment is shown increasing on the new, but not the old, definition.
Unemployment (seasonally adjusted) was 3.2% at the end of March 1986 (3.1% a year earlier), underemployment 2.3% (1.5% a year earlier).
10. Figures are now available for changes in employment patterns during 1985. The trends shown by partial data are borne out, particularly the shift from manufacturing to services, as the following table indicates:
SECTOR
EMPLOYMENT (1,000)
end-1985
848
181
% CHANGE FROM
end-1984
Manufacturing
Finance, insurance,
6
7
property, business
services
Wholesale, retail, import/
427
8
export
Restaurants and hotels
173
3
Building and construction
66
3
Civil Service
175
1
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