ENG-2018 — Page 81

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The Economy

to a decline in the fourth quarter, conceivably reflecting weakened business sentiment amid the challenging external environment.

Labour Market

The labour market tightened further in 2018, thanks to another year of above-trend economic growth. Both the labour force and total employment expanded further, with the latter reaching a new annual high of 3.87 million. Unemployment and underemployment rates went down for the year as a whole to 2.8 per cent and 1.1 per cent respectively, both being the lowest in more than 20 years (chart 8).

Chart 8

Unemployment and Underemployment Rates

Per cent

5

3

2

Seasonally adjusted unemployment rate

Underemployment

rate

T

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

2014

2015

2016

2017

I

Q2 Q3 Q4

2018

The labour market tightened further on the back of another year of above-trend economic growth.

Total employment and the labour force expanded 1.1 per cent and 0.8 per cent respectively in 2018, slightly faster than the corresponding gains of 1 per cent and 0.7 per cent in 2017 (chart 9). Data collected from private-sector establishments likewise pointed to increased employment opportunities on the back of sustained economic growth. Specifically, notable increases in employment were seen in human health services, professional and business services excluding cleaning and similar services, accommodation and food services, financing and insurance, and real estate.

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