In the fourth quarter of 2002, Hong Kong's labour force grew by 2 per cent over the corresponding period of 2001. The labour force stood at 3.5 million, of whom 55.8 per cent were males and 44.2 per cent were females. The seasonally adjusted unemployment rate for the fourth quarter of 2002 was 7.2 per cent while the underemployment rate was 3.1 per cent, as compared with 6.2 per cent and 3 per cent, respectively, a year earlier.

    Of those employed, the majority (84.3 per cent) were engaged in the service sectors—31.1 per cent in wholesale, retail and import/export trades, restaurants and hotels; 27 per cent in community, social and personal services; 15.4 per cent in financing, insurance, real estate and business services; and 10.8 per cent in transport, storage and communications. Only 5.7 per cent worked in the manufacturing sector.

    Owing to a structural shift in employment during the past decade, the number of persons engaged in the service sectors is now over 10 times as many as in the manufacturing sector. In December 2002, 2 002 500 persons were engaged in selected industries in the services sector, which is 0.2 per cent higher than the corresponding figure in 2001. Only 184 500 persons were engaged in the manufacturing sector, a decrease of 9.1 per cent compared with a year earlier.

    The printing and publishing industry has become the largest manufacturing industry, engaging 40 000 persons in December 2002, followed by the clothing industry and the electronics industries, which engaged 35 000 and 17 600 persons respectively. Details of the distribution of establishments and persons engaged by selected major industry groups are given in the Appendices.

Employment Situation

During the year, the labour market remained generally slack. The seasonally adjusted unemployment rate increased from 7 per cent in the first quarter of 2002, to 7.2 per cent in the fourth quarter of 2002. Nevertheless, vacancies registered with the Labour Department rose from 175 841 in 2001 to 209 570 in 2002. The department also placed 62 467 job-seekers in employment during the year.

Wages

Wage rates are calculated on a time basis, either daily or monthly, or on an incentive basis according to the volume of work performed. The average wage rate for employees up to the supervisory level, including daily-rated and monthly-rated employees, decreased by 0.8 per cent in money terms between December 2001 and December 2002. After discounting changes in consumer prices, the average wage rate decreased by 1.8 per cent in real terms.

    In December 2002, the average monthly wage rate for the supervisory, technical, clerical and miscellaneous non-production workers in the wholesale, retail and import/export trades, restaurants and hotels sector was $11,717. Based on the wage indices, the average wage rate for this group decreased by 1.4 per cent in money terms, or by 2.5 per cent in real terms, compared with December 2001.

    Over the same period, the average wage rate in the manufacturing sector decreased by 1.4 per cent in money terms, or by 2.5 per cent in real terms. The overall average daily wage was $329 for craftsmen and operatives.