The labour market
- 4
Labour market conditions showed some easing since the beginning of this year.
In the first quarter of 1995, the seasonally adjusted unemployment rate rose to 2.8%, from 2.0% in the preceding quarter and 2.2% in the same quarter last year.
The easing was more noticeable in the manufacturing sector, the off-site segment of the building and construction sector, and the distributive and catering trades.
By comparison, employment conditions in the other service sectors fared better.
Meanwhile, for those in employment, manpower utilisation remained generally intensive, with the underemployment rate staying low at 1.4% in the first quarter of 1995, as against 1.5% in the preceding quarter and 1.7% in the same quarter last year.
Between December 1993 and December 1994, labour incomes in the manufacturing sector as well as in the service sectors as a whole rose significantly, by 15% and 13% respectively in money terms, or 6% and 3% respectively in real terms.
The magnitude of pay adjustment however varied amongst sub-sectors. Construction wages, on the other hand, showed little change in real terms.
The property market
Sentiment in the residential property market had improved somewhat after the Lunar New Year,
With a degree of relaxation in mortgage lending policy by the banks, response to pre-completion sales in a number of conveniently located residential developments was favourable.
Trading in the secondary market concurrently became more active. speculative activity remained subdued.
Yet
Flat prices in selected major residential developments had fallen by nearly 20%
at the end of February from their peak level in April last year.
In March, flat prices rebounded from the level in February by around 5%.
Flat rentals eased in recent months in face of a more abundant supply of flats for lease.