XN000022-1994-05-27 — Page 10

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FRIDAY, MAY 27, 1994

THE LABOUR MARKET

THE

QUARTER.

MARKET

REMAINED GENERALLY

IN TIGHT

THE FIRST RATE AND THE 1.7% AND

LABOUR BOTH THE SEASONALLY ADJUSTED UNEMPLOYMENT UNDEREMPLOYMENT RATE STAYED AT A LOW LEVEL, AT 2.2% RESPECTIVELY.

A

RELATIVELY RAPID INCREASE IN LABOUR SUPPLY, ATTRIBUTABLE LEAST IN

KONG PART TO REDUCED NET OUTFLOW OF HONG

RESIDENTS, MATCHED BY A CONCURRENT GROWTH IN JOB OPPORTUNITIES.

AT

WAS

LABOUR

WERE

AND

SECTORS MARKET CONDITIONS IN THE VARIOUS SERVICE GENERALLY TIGHTER THAN IN THE MANUFACTURING AND THE BUILDING CONSTRUCTION SECTORS.

REFLECTING THE ONGOING SHIFT IN LABOUR RESOURCES TOWARDS SERVICES IN PARALLEL WITH THE C ONGOING RELOCATION OF PRODUCTION PROCESSES TO CHINA, EMPLOYMENT IN MOST OF THE MAJOR SERVICE SECTORS ROSE FURTHER IN THE 12 MONTHS ENDING DECEMBER 1993, WHILE THAT IN MANUFACTURING SECTOR CONTINUED TO FALL MARKEDLY.

THE

THE WEAK PERFORMANCE OF DOMESTIC EXPORTS ALSO CONTRIBUTED.

EMPLOYMENT ON BUILDING AND CONSTRUCTION SITES SHRANK FURTHER, PRIVATE SECTOR BUILDING ACTIVITY, BEING STILL RELATIVELY LABOUR- INTENSIVE, REMAINED SLUGGISH.

AS

AVERAGE EARNINGS IN MOST OF THE MAJOR SERVICE SECTORS RECORDED FURTHER NOTABLE INCREASES IN MONEY TERMS AS WELL AS IN REAL TERMS IN THE 12 MONTHS ENDING DECEMBER 1993.

MAINLY OWING TO A HIGH BASE OF COMPARISON IN DECEMBER 1992, AVERAGE EARNINGS OF MANUFACTURING WORKERS FELL IN REAL TERMS. CONSTRUCTION WAGE RATES SHOWED LITTLE CHANGE IN REAL TERMS.

THE PROPERTY SECTOR

BUYING INTEREST IN RESIDENTIAL PROPERTY REMAINED STRONG AND FLAT PRICES AGAIN SHOWED MORE RAPID INCREASES DURING THE FIRST QUARTER.

WARY OF A HEATED MARKET, A NUMBER OF BANKS TIGHTENED THEIR MORTGAGE LENDING POLICIES FURTHER IN JANUARY.

IN LATE MARCH, AS LOCAL INTEREST RATES ROSE FOLLOWING HIGHER IN RATES IN THE UNITED STATES, THE MORTGAGE RATE WAS RAISED

INTEREST PARALLEL.

PARTLY BECAUSE OF REDUCED AFFORDABILITY AND PARTLY IN ANTICIPATION

TO OF NEW MEASURES LIKELY TO BE TAKEN BY THE GOVERNMENT STABILISE THE MARKET, TRADING ACTIVITY IN RESIDENTIAL FLATS HAD COOLED DOWN LATELY.

MEANWHILE, THE RENTAL MARKET REMAINED ACTIVE, WITH RENTALS SHOWING A FURTHER INCREASE.

/AMIDST A

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