Chart 11
THE ECONOMY
Total labour force and total employment (year-on-year rate of change)
Per cent
6
5
4
3
Total
labour force
2
1
0
-1
-3
به ما
-2
Total employment
-4
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1998
1999
2002
2003
2000
2001
In the first three quarters of 2003, labour force growth continued to outpace employment growth. Yet the difference between these two growth rates was markedly reduced in the fourth quarter, mainly due to relatively improved employment on the back of a pick-up in overall economy activity. As a result. the unemployment rate fell back visibly by the year-end.
Employment as enumerated from business establishments shrank by 3.3 per cent in September 2003 from a year earlier, following decreases of 2.5 per cent in March and 3.8 per cent in June. For the first nine months of 2003 as a whole, the decrease averaged at 3.2 per cent, exceeding that of 1.6 per cent in 2002. On a seasonally adjusted quarter-to-quarter comparison, total employment nevertheless edged up by 0.1 per cent in September 2003, after declining by 1.7 per cent in March and 1.6 per cent in June. The downtrend since mid-2001 was thus arrested. Increased labour demand, alongside the turnaround in business activity after the waning of SARS, largely contributed.
Taking all the service sectors surveyed together, employment was 2.6 per cent down in September 2003 from a year earlier, further to decreases of 1.4 per cent in March and 2.2 per cent in June. Analysed by major constituent sector, employment in storage and communications continued on a marked decline, by 13.0 per cent in September 2003 from a year earlier, amidst more downsizing and lay-offs in the telecommunications sector, predominantly in the early part of the year. Yet employment in restaurants and hotels had a moderated decrease as compared to a few months earlier, by 8.7 per cent, aided by the surge in inbound tourism and revival in local consumer spending. Employment in the retail trade likewise went down, by 6.4 per cent, notwithstanding the generally improving business conditions. Employment in water transport, air transport and services allied to transport was reduced by 4.4 per cent, with more distinct decreases seen in air transport services and in air ticket and travel agents. Employment in the wholesale and import/export trades contracted by 4.3 per cent, mainly reflecting a higher base of comparison a year earlier.
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