ENG-2006 — Page 82

54 The Economy

The Labour Market

The labour market improved on a broad front for the third consecutive year in 2006, on the back of sustained strong economic growth. The growth pattern was broadly similar to that of the preceding two years, which was characterised by a strong expansion in total employment, a notable decline in unemployment and a slight rise in labour earnings. The job market continued improving throughout 2006, reaching an all-time-high figure of 3.47 million people with jobs in the fourth quarter. The seasonally adjusted unemployment rate fell to a near six-year low of 4.4 per cent by the end of the year, while the number of unemployed people slipped to 153 700. At the same time, the underemployment rate also fell, to 2.4 per cent (Chart 10).

Chart 10

Unemployment and underemployment rates

10

9

Per cent

8

00

7

เด

6

5

4

3

2

1

0

Seasonally adjusted unemployment rate

Underemployment rate

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

2002

2003 Į

2004

I

2005

2006

Both the unemployment and underemployment rates fell during 2006, amid the sustained pickup in overall economic activity.

Employment in 2006 grew by 2.1 per cent, outpacing a 1.3 per cent increase in labour supply. In absolute terms, total employment was up by 70 800, broadly comparable to the average growth during the economic upturn in the early 1990s. Figures at the end of 2006 showed that an additional 299 000 jobs had been created since the employment slump in mid-2003, much exceeding the growth of 145 900 in the labour force (Chart 11).

While additional jobs were offered almost across-the-board, there were clearly more employment gains for managers and administrators, service workers, shop salespersons, workers in elementary occupations, those persons engaged in the wholesale, retail and import/export trades, restaurants and hotels, as well as people with upper secondary or above education.