XN000022-1996-09-16 — Page 2

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Unemployment and underemployment statistics

The seasonally adjusted unemployment rate for the period May to July 1996 was 2.9%, and the underemployment rate was 1.6%, according to the latest labour force statistics released today (Monday) by the Census and Statistics Department.

For the period June to August 1996, the provisional seasonally adjusted unemployment rate edged further lower to 2.8%, while the provisional underemployment rate also fell, to 1.4%.

Commenting on the latest figures, a government spokesman said labour market conditions continued to improve in recent months. In particular, the seasonally adjusted unemployment rate has edged lower for four consecutive months in a row.

For the latest period June to August 1996, decreases in the unemployment rate were mainly observed in the manufacturing, wholesale and retail trades, and restaurants and hotels sectors.

As to the underemployment rate, decreases continued to occur in the manufacturing and construction sectors. The unemployment and underemployment rates in the other major sectors remained generally stable.

In the three months ending July 1996, total labour supply grew by 2.6% over a year earlier, while total employment rose relatively faster, by 3%. With the growth in total labour supply coming down further, while the growth in total employment remaining robust, this has helped to lower the overall unemployment rate in recent months.

During the period May to July 1996, the number of unemployed persons with previous jobs was estimated at 80,100. Another 9,400 unemployed persons were first- time job-seekers. The number of underemployed persons was estimated at 51,600.

The unemployment and underemployment statistics were obtained from a continuous General Household Survey. The survey for May to July 1996 covered a quarterly sample of some 23,200 households or 79,200 persons, selected scientifically to represent the land-based civilian non-institutional population in Hong Kong. Data were obtained from the survey by interviewing each member aged 15 or over in the households sampled.

In the survey, the definitions used in measuring unemployment and underemployment follow closely those recommended by the International Labour Organisation.

'Seasonally adjusted' refers to adjustment for seasonal variations in the proportion of first-time job-seekers in the labour force.