The
The labour market in Hong Kong is very tight. unemployment rate is at a record low of 1.8%, representing about 47,800 persons. This is virtually full employment, taking into account those who are changing jobs for one reason or another. As a result wage rates have been rising in recent months quite rapidly in both money and real terms.
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In March 1987, estimated vacancies in the manufacturing sector were about 48,000. This was lower than the previous peak in 1981 when there were 55,000 vacancies. The number of vacancies in the wholesale, retail, restaurant and hotel service sector, at about 16,000, was at a record. level.
is also a significant number of vacancies in the construction sector but no reliable estimate is
available.
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The main reason for the labour shortage is the rapid growth rate of the economy arising from the current buoyancy of our export markets. In contrast, the growth rate of the labour force between the second quarter of 1986 and the same period in 1987 was only 0.7%, partly because the labour force participation rate fell from 65.4% to 64.4%, equivalent to a reduction of about 42,000 workers. Detailed figures on unemployment rate, wage index and labour force participation rate since 1982 are in Annex A.
Proposals to import labour
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In late July Mr. Ji Shaoxiang of NCNA raised with the Acting Political Adviser a proposal to import construction labour from China as a means of tackling the problems of labour shortage in this industry and of illegal immigrants on construction sites. Mr. Ji later repeated his proposal on separate occasions to various members of the Administration, including the Chief Secretary. While Mr. Ji put forward the proposal informally, he did So with several officials and at some length and it seemed that, at least at the time, he had the backing of his NCNA superiors. Nevertheless, the PRC establishment does not appear to be uniformly behind the idea: articles in the Hong Kong leftwing press have taken a very different line on the labour shortage, and the Federation of Trade Unions are firmly against the importation of labour.
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Many employers and their respective organisations have spoken out about the general labour shortage problem. Employers in the manufacturing industry are most vocal and have proposed several measures, including the importation of labour. The Federation of Hong Kong Industries, the Chinese Manufacturers Association, the Federation of Hong Kong
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