ENG-2002 — Page 90

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THE ECONOMY

increase, by 5.7 per cent, underpinned by sustained strong demand for welfare, education, medical and health, sanitary and recreational services.

As to the local manufacturing sector, its workforce underwent further downsizing, amidst continued weak performance of domestic exports and ongoing relocation of production processes to the Mainland. In September 2002, employment in this sector was reduced further, by 9.2 per cent from a year earlier, after an 8.5 per cent dip in June.

Employment of manual workers at building and construction sites also shrank visibly, by 8.0 per cent in September 2002 over a year earlier, much enlarged from the 1.3 per cent fall in June. This was mainly due to the significant reduction in employment at public sector sites, upon progressive scaling back of the Public Housing Programme and completion of the MTR Tseung Kwan O Extension. Concurrently, employment at private sector sites likewise dropped, as reduced employment in quite a number of private building sites more than offset the gain seen at the construction site for Container Terminal No. 9. Taking into account off-site workers and related professional and support staff, employment for the entire building and construction sector was 2.7 per cent less in the third quarter of 2002 than a year earlier, albeit smaller than the 4.4 per cent decline in the second quarter (Chart 15).

Chart 15

•

Employment by broad economic sector

Number ('000)

Number ('000)

2 500

100

Service sectors as a whole

(left scale)

90

2.000

1 500

1 000

Building and construction sites (right scale)

500

0

Manufacturing sector (left scale)

MJSDM JS DM J SDM J SDMJ SDM JS

1997

1998 ! 1999 1 2000

2001

2002

Employment as enumerated from business establishments had a broad- based decline across many of the major economic sectors in 2002. Yet for all the service sectors taken together, employment showed a smaller decrease in September 2002 than in June. On the other hand, employment in the local manufacturing sector and at building and construction sites. fell to a larger extent over the period.

80

70

60

50

59

40

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