ENG-2004 — Page 88

58 The Economy

Chart 10

9

Per cent

co

8

7

6

5

4

3

2

1

Unemployment and underemployment rates

Seasonally adjusted unemployment rate

Underemployment rate

0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1999

2000

|

2001

2002

2003

2004

Both the seasonally adjusted unemployment rate and the underemployment rate came down during 2004 as economic growth gathered momentum and extended in scope.

The total labour force stayed on a steady growth path, expanding by 0.3 per cent in 2003 and by 0.9 per cent in 2004. The latest increase was attributable entirely to an expansion in the population of working age by 1.1 per cent, more than offsetting the decline in the labour force participation rate, especially for male workers aged 15-24 and 50-59.

By comparison, overall labour demand showed a more notable increase in 2004. This was manifested not only by more intensive utilisation of existing manpower resources, but also by increased job openings and employment of additional staff. As an indicator, total employment as enumerated from households rose by 2.1 per cent in 2004, reversing the 0.4 per cent fall in 2003. Growth was modest in the first quarter, but picked up momentum the rest of the year. At end-2004, total employment reached an all-time high of 3.33 million. Compared with the trough in mid-2003, this represented a large gain of 139 400 or 4.4 per cent. Much of the growth occurred among higher skilled workers in the import/export trade and financing and education services sectors, as well as among the lower skilled ones including service workers and shop sales workers in the wholesale/retail trade, restaurants and miscellaneous personal services sectors, craft and related workers in the construction sector, and workers in elementary occupations in the transport and real estate sectors. Also, the more experienced workers aged 40 to 59 seemed to have benefited more from the improved employment situation (Chart 11).