ENG-2000 — Page 87

THE ECONOMY

Yet building and construction output, having contracted by 11.4 per cent in 1999, shrank further by 8.5 per cent in real terms in 2000, with the decline concentrating in the early part of the year. This was attributable to continued slack in private sector building activity, amidst the subdued state of the property market. Also contributing was the fall in public sector building and construction activity, following the deceleration of the Public Housing Programme from its earlier peak as well as the completion of several major government projects. The extensive work under the Priority Railway Projects and the stepping up of maintenance work on existing buildings rendered only a partial offset.

The Labour Market

Labour market conditions improved visibly in 2000, in tandem with the strong economic recovery. The seasonally adjusted unemployment rate came down markedly, from a peak of 6.3 per cent towards the middle of 1999 and 6.0 per cent in the fourth quarter of 1999 to 4.4 per cent in the fourth quarter of 2000. Over the past year, the total numbers unemployed (not seasonally adjusted) fell from 210 700 to 150 700, while the median duration of unemployment shortened from 97 days to 78 days. The underemployment rate also declined, from a peak of 3.3 per cent towards the middle of 2000 to 2.7 per cent in the fourth quarter of the year, having risen from 2.8 per cent in the fourth quarter of 1999. Comparing the fourth quarter of 2000 with a year earlier, the total numbers underemployed decreased from 95 300 to 90 800.

Chart 10

Unemployment and underemployment rates

Per cent

6.5

6.0

5.5

5.0

4.5

4.0

3.5

Seasonally adjusted unemployment rate

3.0

2.5

2.0

Underemployment rate

1.5

1.0

0.5

0

|

Q2 Q3 Q4 QI Q2 Q3 Q4 Q1

1996

1997

I

Q2 Q3 Q4 QI Q2 Q3 Q4 Q1 Q2 Q3 Q4

1998

1999

2000

Labour market conditions continued to improve in 2000. In particular, there was a notable decline in the seasonally adjusted unemployment rate.

As regards employed persons, work intensity remained generally high. The proportion of employed persons working for 50 hours or more per week rose slightly further, from 33 per cent in the fourth quarter of 1999 to 34 per cent in the fourth

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