3
The Economy
Labour Market
The labour market showed a broad-based tightening during 2017 amid a buoyant local economy. Both the labour force and total employment picked up notably in growth, with the latter reaching a new record annual high of 3.82 million. Unemployment and underemployment rates went lower progressively over the course of 2017, averaging at post- 1997 lows of 3.1 per cent and 1.2 per cent respectively for the year as a whole (chart 9).
Chart 9
Unemployment and Underemployment Rates
3
2
Per cent
5
0
01
Q2 Q3 Q4 Q1
I
2013 1
Seasonally adjusted unemployment rate
Underemployment rate
T
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2014
2015
2016
2017
The labour market tightened in 2017 on the back of a buoyant local
economy.
Total employment and the labour force expanded 1 per cent and 0.7 per cent respectively in 2017, after the 0.4 per cent gains in 2016 for both (chart 10). Data collected from private-sector establishments likewise pointed to solid employment growth throughout the year amid the vibrant local consumption and recovery of inbound tourism. Specifically, more visible job gains were observed in construction sites (covering manual workers only), human health services, professional and business services excluding cleaning and similar services, education, financing and insurance, and real estate.
The number of private-sector vacancies increased 3.7 per cent over 2016 to 71,310, with the growth pace picking up towards the latter part of the year.
Analysed by economic sector, most of the sectors saw more vacancies, with notable increases. observed in construction sites (covering manual workers only), human health services, accommodation services, transportation, storage, postal and courier services, cleaning and similar services, and financing and insurance. Fewer vacancies were recorded in arts, entertainment, recreation and other services. As a combined result of the rebound in vacancies and falling unemployment, the ratio of job vacancies per 100 job-seekers increased from 52 in 2016 to 58 in 2017.
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