XN000022-1997-02-24 — Page 3

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Government's unemployment figures are correct

In response to the claim by the Hong Kong Federation of Trade Unions (FTU) that the Government had "concealed" the actual unemployment rate, the Commissioner for Census and Statistics, Mr Frederick Ho, said today (Monday) that in making the claim, the FTU had some misunderstanding.

According to the FTU, which quoted a recent report on Labour Mobility published by the Census and Statistics Department, there were some 161,000 economically inactive persons in late 1995 who should be considered as unemployed persons. On this basis, the recent unemployment rate should be around 7.5 per cent instead of 2.5 per cent.

Mr Ho said: "According to the internationally accepted definition of unemployment, as recommended by the International Labour Organisation, which has always been closely followed in Hong Kong, for a person aged 15 or over to be classified as unemployed, that person should (a) be without a job, and (b) be available for work, and (c) have sought work during the 30 days before enumeration.

"This definition further stipulates that in applying the above criteria, for a person who has not sought work, he or she is still an unemployed person if the reason for not seeking work is that work is believed to be not available. In this case, the person concerned is a 'discouraged worker'.

"People who are neither employed nor unemployed constitute the 'economically inactive population"."

FTU has argued that since the 161,000 persons without a job have been reported to be "willing to take up jobs", they should be classified as "unemployed".

Mr Ho pointed out that in the enquiry concerned, these persons had been confirmed to be economically inactive through a series of questions (e.g. whether available for work, and if not, reasons for non-availability), meeting the requisite definitions. The key point to be determined for this series of questions is that they have not sought work and they are different from "discouraged workers".