THE ECONOMY
Chart 9:
Per cent
Unemployment and underemployment rates
6.5
6.0
5.5
5.0
4.5
4.0
Seasonally adjusted unemployment rate
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0
Underemployment rate
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 QI Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1993
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1994
1995
1996
1997
1998
1999
Overall labour market conditions stayed generally slack during the first half of 1999, before showing a modest improvement later in the year.
activity. The narrowing differential between these two growth rates, in contrast to the situation earlier when the labour force grew much faster than employment, should contribute to a further decline in the unemployment rate in due course.
Employment as enumerated from business establishments picked up noticeably. Taking all the service sectors surveyed together, employment leaped by 4 per cent in September 1999 over a year earlier. This was up from the 3 per cent increase in June 1999, and even more so from the 5 per cent decline in 1998. Within the various major service sectors, employment in the retail trade and in restaurants and hotels rose by 8 per cent and 3 per cent respectively in September 1999 over a year earlier, underpinned by the recovery in local consumer spending and further growth in inbound tourism. Employment in the wholesale and import/export trades and in water transport, air transport and services allied to transport also went up, by 5 per cent and 2 per cent respectively, along with the revival in external trade. Employment in storage and communications bounced back to a 7 per cent rise, amidst the rapid expansion in mobile telephone and Internet services. Employment in community, social and personal services and in financing, insurance, real estate and business services likewise gained, by 5 per cent and 2 per cent respectively.
In stark contrast, employment in the manufacturing sector continued on a downtrend, falling by 5 per cent in September 1999 over a year earlier. Yet this was considerably smaller than the decreases of 11 per cent in March and 7 per cent in June. An improved performance of domestic exports in the latter part of the year was a major contributory factor. Employment of manual workers at building and construction sites also fell, by 9 per cent in September 1999 over a year earlier. This was again smaller than the corresponding decreases of 17 per cent in March and 12 55