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5. UNEMPLOYMENT, AT 1.3 PERCENT, WAS AT AN HISTORIC LOW IN NOVEMBER. THE LABOUR MARKET CONTINUES TO BE EXTREMELY TIGHT. IT IS LIKELY THAT THE AVERAGE RATE OF CONSUMER PRICE INFLATION FOR 1988 WILL BE CLOSE TO THE FORECAST 7.5 PERCENT, COMPARED WITH 5.5 PERCENT FOR 1987. BUT WAGES ARE STILL KEEPING AHEAD OF INFLATION.
6. LAND PRICES HAVE BEEN BUOYANT AN AUCTION ON 29 NOVEMBER ATTRACTED BIDS SIGNIFICANTLY ABOVE THE UPSET PRICES. THIS SUGGESTS THAT DEVELOPERS EXPECT PRICES AND RENTALS, PARTICULARLY FOR COMMERCIAL PROPERTY, TO CONTINUE TO RISE.
7. INVESTMENT REMAINED STRONG INTO THE THIRD QUARTER OF 1988. RETAINED IMPORTS OF CAPITAL GOODS GREW BY 14 PERCENT IN REAL TERMS IN THE FIRST NINE MONTHS OF THE YEAR COMPARED WITH THE SAME PERIOD IN 1987. CONSTRUCTION WORK, PARTICULARLY ON PRIVATE SECTOR PROJECTS, HAS REMAINED INTENSIVE. THIS IS AN IMPORTANT INDICATOR OF CONFIDENCE.
LEGCO
8. 19 NEW APPOINTED AND ELECTED MEMBERS JOINED THE LEGISLATIVE COUNCIL IN OCTOBER. THEY HAVE TAKEN TIME TO BECOME ACCUSTOMED TO THE PRACTICES AND PROCEDURES OF THE COUNCIL. BUT THE MOOD OF THE COUNCIL HAS BEEN PRAGMATIC AND BUSINESSLIKE. TWO MAJOR DEBATES HAVE BEEN HELD CON EXPO 97 AND THE THIRD REPORT OF THE EDUCATION COMMISSION) BOTH WERE CONDUCTED RESPONSIBLY. MEMBERS CONCERNS THIS SESSION HAVE BEEN PRIMARILY ON DOMESTIC ISSUES. THE PROBLEM OF VIETNAMESE REFUGEES, AND HOPE OF GREATER ASSISTANCE IN RESOLVING IT, PARTICULAR- LY FROM THE UK, REMAINS AN EMOTIVE ISSUE.
CIVIL SERVICE
9. OVERALL, CIVIL SERVICE WASTAGE INCREASED FROM 4 PERCENT TO 5 PERCENT IN 1988: THEY REMAIN WELL BELOW RATES IN THE PRIVATE SECTOR. NEVERTHELESS THERE ARE SOME AREAS OF GOVERNMENT ACTIVITY WHICH ARE SUFFERING FROM A LACK OF QUALIFIED STAFF, E.G. SOCIAL WELFARE, MEDICAL AND HEALTH, LEGAL AND DATA PROCESSING. EMIGRATION IS A FACTOR IN THE INCREASED WASTAGE FIGURES. SO IS THE ATTRACTION OF THE PRIVATE SECTOR.
10. THE OUTCOME OF RECENT PAY REVIEWS HAS CAUSED CONCERN AND SOME RESTLESSNESS WITHIN THE CIVIL SERVICE. IN PARTICULAR, SOME ASPECTS OF THE REVIEW OF THE PAY AND CONDITIONS OF SERVICE OF THE DISCIPLINED SERVICES HAVE AROUSED A STRONG REACTION, MAINLY BECAUSE OF THE RESULTING CHANGES IN RELATIVITIES BETWEEN AND WITHIN THE SERVICES.
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