ENG-1999 — Page 82

THE ECONOMY

per cent in June. Within this total, employment at private sector sites shrank by 30 per cent, following the completion of several major office buildings and winding down of some large private residential development projects. This more than offset a further increase of 17 per cent in employment at public sector sites, due to continued busy work under the Public Housing Programme and increased construction activity on the priority railway projects. Nevertheless, taking into account off-site workers and related professional and support staff, employment for the building and construction sector as a whole fell more moderately, by 4 per cent in the third quarter of 1999 over a year earlier, following decreases of 5 per cent and 7 per cent respectively in the first two quarters.

Chart 10:

Employment by broad economic sector

2 500

2000-

Number ('000)

1 500

Building and construction sites (right scale)

1 000

500

Service sectors as a whole (left scale)

Number ('000)

100

90

80

70

60

Manufacturing sector (left scale)

50

0

MJSD M JSD M JS DM JSDM JS DM JSDM J S

1993 1

1994

1995

1996

| 1997

1

1998

1999

- 40

56

Employment in the service sectors picked up noticeably in the latter part of 1999, while that in the local manufacturing sector and at building and construction sites showed smaller declines.

Labour earnings and wages moderated further in money terms in 1999, along with the ongoing cost/price adjustments in the local economy. Overall labour earnings were on average down by 1 per cent in money terms in both the second and third quarters of 1999 over a year earlier. This represented a further easing from the increases of 4 per cent in 1998 and 2 per cent in the first quarter of 1999. Overall wages also fell, on average by 1 per cent in money terms in September 1999 over a year earlier, again moderated from the 4 per cent rise in 1998 and nil change in March 1999. Yet after discounting the effect of a larger decline in consumer prices, both labour earnings and wages showed a fairly significant increase in real terms in the latter part of 1999.