MONDAY, SEPTEMBER 12, 1977
IT POINTS OUT THAT THE RAPID INCREASE IN INCOMES IN 1976 HAS MEANT THAT THERE WAS A DECREASING NEED FOR SO MANY MEMBERS OF A FAMILY, IN PARTICULAR HOUSE-WIVES, TO WORK. INDICATIVE OF SUCH A DEVELOPMENT IS THAT FEMALE LABOUR FORCE PARTICIPATION RATE DROPPED FROM 45.3 PER CENT IN MARCH 1976 TO 42.7 PER CENT IN MARCH 1977, EVEN THOUGH SHORTAGES OF FEMALE LABOUR WERE REPORTED IN THE CLOTHING INDUSTRY.
THE REPORT INDICATES THAT THE SLIGHT DECREASE IN MANUFACTURING EMPLOYMENT BETWEEN SEPTEMBER 1976 AND MARCH 1977 WAS A REFLECTION OF THE DECREASED BUOYANCY OF MANUFACTURING INDUSTRY.
HOWEVER, BECAUSE OF THE CHANGING ATTITUDE TOWARDS WORK AND BECAUSE OF INCREASED DEMAND FOR LABOUR IN THE CONSTRUCTION AND THE CONSUMER SERVICES SECTORS, THERE WAS STILL SHORTAGE OF LABOUR IN THE MANUFACTURING INDUSTRY.
IN THIS CONNECTION, THE REPORT POINTS OUT THE EMPLOYMENT ON CONSTRUCTION SITES IN MARCH 1977 WAS 32 PER CENT HIGHER THAN A YEAR AGO BUT EMPLOYMENT IN THE WHOLESALE, RETAIL, IMPORT AND EXPORT INDUSTRIES, AFFECTED BY THE SLUGGISHNESS IN EXTERNAL TRADE, WAS 1 PER CENT DOWN.
WAGES FOR MANUFACTURING WORKERS HAVE CONTINUED TO INCREASE IN THE FIRST HALF OF 1977 BECAUSE THERE WAS SHORTAGE OF LABOUR, BUT THE REPORT POINTS OUT THAT +SINCE THE SHORTAGE WAS BROUGHT ABOUT BY COMPETING DEMANDS OF OTHER INDUSTRIES FOR LABOUR AND NOT BY ANY SIGNIFICANT INCREASE IN DEMAND IN THE MANUFACTURING SECTOR ITSELF, INCREASES IN WAGES IN MANUFACTURING WERE LESS SIGNIFICANT THAN ELSEWHERE+.
THE REPORT ILLUSTRATES THIS BY COMPARING THE WAGE FOR MANUFACTURING WORKERS, WHICH INCREASED BY 7 PER CENT BETWEEN SEPTEMBER 1976 AND MARCH THIS YEAR, WITH THE WAGE FOR CONSTRUCTION WORKERS WHICH INCREASED BY 11 PER CENT DURING THE SAME PERIOD,
ON PRICE MOVEMENTS, THE REPORT SHOWS SOME ACCELERATION IN CONSUMER PRICES WITH THE CONSUMER PRICE INDEX FOR THE FIRST HALF OF THE YEAR AVERAGING 6.7 PER CENT HIGHER THAN THE CORRESPONDING PERIOD A YEAR AGO.
THE REPORT ADDS THAT THIS WAS BECAUSE THE INCREASE IN DOMESTIC INCOMES AND DEMAND HAS CAUSED DOMESTICALLY DETERMINED PRICES TO RISE. ALSO, MOVEMENTS IN THE HONG KONG DOLLAR EXCHANGE RATE WERE NO LONGER PROVIDING THE SAME PROTECTION FROM INCREASES IN WORLD PRICES.
IN RESPECT OF PRICES FOR RAW MATERIAL, THE REPORT INDICATES THAT THEY HAVE IN GENERAL REMAINED FAIRLY STABLE BECAUSE WORLD DEMAND AND SUPPLY OF INDUSTRIAL MATERIALS APPEARED TO BE LARGELY IN BALANCE.
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