ENG-2002 — Page 77

Chart 5

THE ECONOMY

Employment by major service sector

1982

2002 *

Wholesale, retail and

import/export trades, restaurants and hotels

Wholesale, retail and import/export trades,

restaurants and hotels

32.0%

Transport. storage and

communications

7.3%

Financing,

insurance,

real estate

21.9%

and

business

services 5.0%

Community, social and personal services 16.9%

Others 16.0%

Transport, storage and communications

11.1%

Others 48.9%

Financing. insurance, real estate and business services 15.0%

Community, social and personal services 26.0%

Over the past two decades, financing, insurance, real estate and business services showed the fastest employment growth. But in terms of employment size, 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 in 2002.

*

Average of Q1 to Q3 2002.

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. Moreover, through increased outward processing arrangements in the Mainland, Hong Kong's productive capacity has effectively been expanded by multiples, which has helped maintain the price. competitiveness of its 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, Hong Kong's manufacturers have also been striving hard to diversify their products. and markets, in face of increased challenges from globalisation of trade and keener competition from other export producers. Concurrently, productive efficiency and product quality have been continuously upgraded by incorporating more advanced skills and technology.

Within the local manufacturing sector, textiles and clothing remain the most important industries, notwithstanding continued decline in their relative significance over the years. Other major industries include machinery and equipment, electronics, printing and publishing, food processing and metal products. Generally speaking, those manufacturing operations still remaining in Hong Kong are more knowledge-

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