THE ECONOMY
Total employment as enumerated from households had a marked slowdown over the course of 2001, with the year-on-year growth rate moderating from 3.2 per cent in the first quarter to -0.7 per cent in the fourth quarter. Employers were generally more cautious and stringent about their staffing position, in face of a more difficult economic situation especially in the wake of the September 11 incidents. Meanwhile, a moderation, yet to a lesser extent, was seen in the year-on-year growth rate of the total labour force, from 2.0 per cent to 1.1 per cent. These differential growth rates also reflected a clear slackening in the labour market (Chart 11).
Chart 11
Total labour force and total employment
(year-on-year rate of change)
6
5
4
3
2
1
0
-|
-2
-3
-4
Per cent
Total
labour force
Total employment
Q2 Q3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4 QI Q2 Q3 Q4
1997
2001
1998
1999
2000
Total employment growth moderated visibly over the course of 2001, while total labour supply growth held relatively steady. These differential growth profiles contributed to a distinct loosening in the manpower resource balance especially towards the end of the year.
Employment as enumerated from establishments likewise contracted in overall terms. For all the business establishments surveyed taken together, employment in the private sector fell by 1 per cent in September 2001 over a year earlier, reversing the 1 per cent rise seen in both March and June. On a seasonally adjusted quarter-to- quarter comparison, there was also a decrease of 1 per cent in September 2001, having been stable in March and up by 1 per cent in June.
Employment for all the service sectors surveyed as a whole nevertheless held steady in September 2001 as compared to a year earlier, although this still represented a slowdown from the small increases of 1 per cent and 2 per cent respectively in March and June. Conditions varied amongst the constituent sectors. Specifically, employment in the wholesale and import/export trades was reduced by 5 per cent in September 2001 over a year earlier, in line with the setback in external trade. Employment in storage and communications also shrank, by 3 per cent, due in part to the slowdown in telecommunications services. On the other hand, employment in community, social and personal services went up visibly, by 8 per cent, underpinned
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