ENG-2003 — Page 78

THE ECONOMY

In terms of employment, the wholesale, retail and import/export trades, restaurants and hotels was again the largest sector, accounting for 31 per cent of the total employment in the first three quarters of 2003. This was followed by community, social and personal services (with a share of 28 per cent), financing, insurance, real estate and business services (15 per cent), and transport, storage and communications (11 per cent) (Chart 5).

Chart 5

Employment by major service sector

1983

2003 *

Wholesale, retail and

import/export trades,

restaurants and hotels

Wholesale, retail and import/export trades, restaurants and hotels 31.3%

Transport, storage and

communications

7.4%

Financing.

insurance,

real estate and business

services

5.1%

22.2%

Community,

social and

personal

services

17.5%

Transport, storage and

communications

11.2%

Others 47.8%

Financing. insurance,

real estate

and business services 15.1%

Others

14.8%

Community, social and

personal

services

27.6%

46

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 continued to be the largest employer in the economy in 2003.

* Average of Q1 to Q3 2003.

The Manufacturing Sector

Manufacturing firms in Hong Kong are renowned for their versatility and flexibility 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 uphold the price competitiveness of its products.

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 the challenges from globalisation of trade and keen 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,