XN000022-1995-05-03 — Page 32

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The rise in the unemployment rate is due largely to the recent moderations in the expansion of some service sectors such as retailing and restaurants, which in turn gave rise to a reduced take-up of workers released from the manufacturing sector. However, more than three-fifths of the unemployed workers in the first quarter of this year have been unemployed for less than three months. This suggests that, in most cases, the unemployment has not been prolonged. Moreover, of those unemployed, over one third have left their jobs to find better ones, rather than being laid off. We should also note that, of those workers now in employment, manpower utilisation has been maintained at a very high level, as shown by the persistently low underemployment rate of around 1.5%, the latest figure being the lowest in recent years at 1.4%.

That said, the Government fully appreciates the recent public concern about a greater number of workers becoming unemployed, and is sympathetic to the genuine difficulties faced by these workers who have to adapt themselves to perhaps entirely new job requirements. We will therefore do all we can in our existing employment policy to help those workers -

First, to extend our job placement services and assistance;

Second, to step up training and re-training courses, tailor-made in particular for the needs of such workers;

and

Third, to strengthen monitoring and control of the labour importation schemes;

Fourth, to increase and step up enforcement action against illegal workers.

Importation of Labour

As I have said on many occasions, the labour importation policy is built upon the premise of giving priority in employment to local workers and preventing displacement of local workers by imported workers. We will conduct a thorough review of the operations of the General Labour Importation Scheme before proceeding with the next allocation which is not due until early 1996. The purpose is to ensure that it does work according to its intended purpose, and to improve the effectiveness of the various safeguards for deterring abuses. We will study carefully the employment situation of different sectors and recommend appropriate changes to such things as quota allocation criteria and mechanism. Further improvements to the monitoring procedures will also be considered, including the possibility of involving both employers and employees in the process. Both this Council and the Labour Advisory Board as well as employer and employee associations and bodies will be fully consulted on the review, which should be completed before the end of this year.

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