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10.

Given the strong demand for labour,

the rate of unemployment was exceptionally low.

The seasonally adjusted unemployment rate and

the underemployment rate were 1.3% and 0.8%

respectively in the first quarter, while in the

fourth quarter of last year they were 1.3% and

0.7%. Vacancies were widespread, and labour

incomes registered further increases both in

money and in real terms. Over the course of

1988, labour resources continued to move from

the manufacturing sector to the service sectors.

11.

As regards the property market, the

demand for most types of property remained

strong at the beginning of this year. However,

partly as a result of the increases in interest

rates, some moderation seems to have occurred

more recently. Prospective buyers of

residential property appear to have become more

cautious and selective in response to much

increased flat prices and higher mortgage

rates. The demand for shopping and office space

continued to be strong, while the demand for

factory space in remote locations tended to

stabilise. Meanwhile, the demand for storage

premises was increasing.

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