ENG-1998 — Page 88

THE ECONOMY

Chart 9

Unemployment and underemployment rates

Percent

6.0

5.5

5.0

4.5

4.0

Seasonally adjusted unemployment rate

3.5

3.0

2.5

2.0

1.5

1.0

Underemployment rate

0.5

0

52

QI Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1993

1994

1995 |

1996

1997

1998

The labour market eased considerably during 1998, upon the economic downturn but also affected by continued rapid growth in the labour force.

wholesale/retail trade, manufacturing, import/export trade and business services, as these sectors were affected by the weak performance of external trade and subdued local consumer spending. By comparison, the unemployment rates in financing and in community, social and personal services, rose more slowly. The increase in the underemployment rate was most distinct in construction, transport, restaurants, manufacturing and the retail trade.

Employment as enumerated from business establishments recorded decreases in most economic sectors, some rather considerable. With all the services segments surveyed taken together, the total numbers employed in September 1998 was down by 5 per cent from a year earlier. Employment in the retail trade had the largest decline, by 11 per cent, along with the setback in retail business. Employment in storage and communications, in the wholesale and import/export trades, and in water transport, air transport and services allied to transport also fell markedly, by 8 per cent, 7 per cent and 7 per cent respectively. This was associated mostly with the setback in external trade. In restaurants and hotels, employment shrank by 7 per cent. As to financing, insurance, real estate and business services, employment fell somewhat less, by 4 per cent. On the other hand, employment in community, social and personal services went up by 3 per cent. This was largely attributable to increased employment in education, medical and health, and social welfare services in line with community needs. In the local manufacturing sector, employment in September 1998 dropped by 17 per cent from a year earlier. This was related to the weak performance of domestic exports, but also relevant was continued relocation of the more labour-intensive production processes across the border. Employment at building and construction