ENG-2000 — Page 80

Chart 5

t

THE ECONOMY

Employment by major service sector

Transport,

storage and

communications

7.3%

Financing,

insurance,

1980

Wholesale, retail and import/export trades, restaurants and hotels

20.0%

2000*

Wholesale, retail and

import/export trades,

restaurants and hotels

33.1%

real estate

and

business

services

4.6%

Community, social and personal services 16.5%

Transport, storage and communications

11.3%

Others

51.6%

Others 17.7%

Financing, insurance, real estate and business services 14.1%

Community, social and personal services 23.7%

Over the past two decades, the wholesale, retail and import/export trades, restaurants and hotels, as well as community, social and personal services, were the two largest employers in the economy.

*

Average of Q1 to Q3 2000.

48

The Manufacturing Sector

Manufacturing firms in Hong Kong are renowned for their versatility and flexibility. The existence of many small establishments, connected under an extensive local sub- contracting network, has greatly facilitated producers in coping with changing demand conditions in the overseas markets. Furthermore, through increased outward processing arrangements in the Mainland, Hong Kong's productive capacity has effectively been expanded by multiples. This has helped maintain the price competitiveness of Hong Kong's products. A predominant proportion of Hong Kong's manufacturing output is destined for export.

Besides relocating the more labour-intensive production processes to the Mainland, the local manufacturers have also been striving hard to diversify their products and markets, in face of an increased challenge from globalisation of trade and keener competition from other export producers. Concurrently, productive efficiency and product quality have been continuously upgraded by incorporating better skills and technology.

Within the local manufacturing sector, textiles and clothing are still the most important industries, notwithstanding the decline in their relative significance over the past years. Other major industries include machinery and equipment, printing and publishing, electronics, food processing, metal products, jewellery, and watches and clocks. Generally speaking, those manufacturing activities remaining in Hong Kong tend to be more knowledge-based and have higher value-added and greater technology or service content.