WEDNESDAY, JANUARY 21, 1981
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IMMIGRANTS ADD TO LABOUR SUPPLY
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IMMIGRATION IS THE MAJOR FACTOR WHICH ACCOUNTED FOR THE VERY RAPID GROWTH RATE OF THE SUPPLY OF LABOUR, THE FINANCIAL SECRETARY, THE HON SIR PHILIP HADDON-CAVE, SAID IN THE LEGISLATIVE COUNCIL TODAY.
REPLYING TO A QUESTION BY DR THE HON HO KAM-FAI, SIR PHILIP SAID THE IMMIGRANTS, THROUGH COMPETING FOR JOB OPPORTUNITIES AND SLOWING DOWN THE RATE OF INCREASE IN WAGES, INDIRECTLY FORCED RELATIVELY MORE PEOPLE, SUCH AS HOUSEWIVES, INTO THE LABOUR FORCE.
HE SAID HONG KONG'S LABOUR FORCE HAD GROWN BY 8.3 PER CENT DURING THE 12 MONTHS ENDING SEPTEMBER 1980. THIS IS THREE TO FOUR TIMES THE TREND GROWTH RATE OF THE LABOUR FORCE DURING THE PREVIOUS EIGHT YEARS.
THE LABOUR FORCE PARTICIPATION RATE IN SEPTEMBER 1980 WAS 63.8 PER CENT COMPARED WITH 62.4 PER CENT IN SEPTEMBER 1979.
+SO, ALTHOUGH THERE WAS A STRONG GROWTH RATE OF DEMAND FOR LABOUR, IT WAS NOT RAPID ENOUGH TO ABSORB COMPLETELY THIS ADDITIONAL SUPPLY, HE SAID.
*ALTHOUGH THE GROWTH RATE OF THE EMPLOYED LABOUR FORCE WAS AS HIGH AS 7.2 PER CENT DURING THE 12 MONTHS ENDING SEPTEMBER 1980, THE UNEMPLOYMENT RATE INCREASED FROM 3.4 PER CENT IN SEPTEMBER 1979 TO 4.3 PER CENT IN SEPTEMBER 1980 (FROM 2.8 PER CENT TO 3.8 PER CENT ON A SEASONALLY ADJUSTED BASIS).+
+AGAINST THIS BACKGROUND, SIR PHILIP SAID, ANY POSITIVE ATTEMPT TO EASE THE SITUATION OF THE UNEMPLOYED' MUST BE DIRECTED AT FURTHER REDUCING THE FLOW OF IMMIGRANTS.+
BUT, HE ADDED, SHOULD THE ECONOMY'S GROWTH RATE DECLINE IN THE MONTHS AHEAD (AND A DECLINE IN THE GROWTH RATE OF DOMESTIC EXPORTS IS ALREADY UNDER WAY), THE UNEMPLOYMENT RATE MAY RISE FURTHER TEMPORARILY UNTIL THE COST/PRICE STRUCTURE ADJUSTS DOWNWARDS AND OUR COMPETITIVENESS IS RESTORED TO THE EXTENT NECESSARY TO RESTORE A STATE OF FULL EMPLOYMENT, WHICH STATE I WOULD DEFINE AS ONE WHERE THE UNEMPLOYMENT RATE IS AROUND 4 PER CENT OR LESS.+
AS REGARDS THE UNEMPLOYED THEMSELVES, SIR PHILIP SAID THE LOCAL EMPLOYMENT SERVICE OF THE LABOUR DEPARTMENT PROVIDES A FREE EMPLOYMENT PLACEMENT SERVICE TO PERSONS WISHING TO SEEK EMPLOYMENT LOCALLY.
THE FACSIMILE SYSTEM INSTALLED IN AUGUST 1978 HAS HELPED TO SPEED UP DISSEMINATION OF INFORMATION ON JOB VACANCIES AND HAS IMPROVED THE EFFECTIVENESS OF THE OPERATION OF THE LES.
PUBLIC ASSISTANCE IS ALSO AVAILABLE TO ANY PERSON UNDER 17 OR OVER 59 YEARS OF AGE WHO HAS BEEN RESIDENT IN HONG KONG FOR ONE YEAR IF THE TOTAL INCOME OF HIS FAMILY (1.E. THE FAMILY WHICH SITS ROUND THE MEAL TABLE) FALLS BELOW THE PUBLIC ASSISTANCE LEVEL, (WHICH WAS INCREASED BY 22 PER CENT IN SEPTEMBER 1980).
/IN THE
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