56
Chart 10
9.0
8.5
8.0
7.5
7.0
6.5
6.0
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0
Per cent
THE ECONOMY
Unemployment and underemployment rates
Seasonally adjusted unemployment rate
Underemployment rate
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 QI Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1998
1999
2000
2001
2002
2003
Both the unemployment rate and the underemployment rate surged to record highs in the summer of 2003, consequential to an abrupt economic downturn under the impact of SARS. Yet they came down visibly afterwards, in tandem with a distinct rebound in overall economic activity.
For the employed persons, work intensity dwindled noticeably during the second quarter of 2003, amidst the spread of SARS. The median hours of work were reduced to 45 hours per week in the second quarter, from 48 hours per week in both the fourth quarter of 2002 and the first quarter of 2003. Yet in line with the revival in economic activity, work intensity rose again to 48 hours per week in the third and fourth quarters. For 2003 as a whole, the median hours of work stood at 48 hours per week, the same as in 2002. The proportions of employed persons working for 50 hours or more per week and for 60 hours or more per week, at 41 per cent and 25 per cent respectively in the fourth quarter of 2003, were even slightly higher than those of 40 per cent and 24 per cent in the fourth quarter of 2002.
Total employment as enumerated from households contracted by 0.3 per cent in 2003, yet this was smaller than the 0.6 per cent decrease in 2002. On a year-on-year comparison, employment growth slowed down from 0.8 per cent in the first quarter of 2003 to 0.5 per cent in the second quarter, and then turned negative in the third quarter with a decline of 1.7 per cent amidst the SARS impact. In the fourth quarter, the decrease narrowed visibly to 0.6 per cent, in line with improved performance of the economy after SARS waned. Total labour force expanded only mildly by 0.4 per cent per cent in 2003, lesser than the 1.8 per cent rise in 2002. This was entirely attributable to a decline in the labour force participation rate, especially that for persons aged 15-19 and aged 50 and above. On a year-on-year comparison, labour force growth moderated over the course of 2003, turning from increases of 1.3 per cent and 1.5 per cent respectively in the first and second quarters to decreases of 0.7 per cent and 0.5 per cent in the third and fourth quarters (Chart 11).