ENG-1995 — Page 89

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THE ECONOMY

with 2 per cent and 1.5 per cent in the same quarter in 1994. A major factor under- lying the rise in the unemployment rate was a faster increase in overall labour supply, outstripping the growth in total employment which was actually quite notable. This was attributable to the return of more former emigrants, more incoming expatriates, and more immigrants from China. Another factor was the slackening in consumer demand, so that workers released from the manufacturing sector could not be as readily absorbed by the consumption sectors as in recent years. Total labour supply rose by 3.2 per cent during the year, while total employment rose by 1.9 per cent.

Employment conditions varied considerably among occupations. Unemployment and underemployment were mainly concentrated in workers directly involved in production activities, and at the semi-skilled and unskilled levels. Professional, managerial, and administrative workers were relatively less affected, and shortages were still apparent in certain job categories.

The shift in employment from the manufacturing sector to the service sectors continued. Employment in the service sectors as a whole reached 1 874 500 in September 1995. Employment in financing, insurance, real estate and business services showed the fastest increase, by four per cent. This was followed by com- munity, social and personal services, with an increase of two per cent. Employment in the wholesale and import/export trades, and in water transport, air transport and services allied to transport, was little changed. However, employment in the retail trade and in restaurants and hotels fell by six per cent and five per cent, respectively. Employment in the manufacturing sector remained on a downtrend, falling by 12 per cent in September 1995 compared with a year earlier. Building and construction sites experienced a sharp nine per cent increase in employment. Reflecting mainly

Employment by broad economic sector

Number ('000)

2000

1500

1000

500

0

Service sectors as a whole (left scale)

[

Number ('000)

80

70

Building and construction sites (right scale)

60

Manufacturing sector (left scale)

Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep

1990

1991

1993

1994

1995

1992

The structural shift of manpower from manufacturing to services continued in 1995. Employment at construction sites rose sharply, reflecting in part the momentum of implementation of the Airport Core Programme.

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