In the fourth quarter of 2005, Hong Kong's labour force grew by 1.1 per cent over the corresponding period of 2004. The labour force stood at 3.61 million, of whom 55.1 per cent were males and 44.9 per cent were females.

Of those employed, the majority, 85.6 per cent, were engaged in the service sectors — 34.1 per cent in wholesale, retail and import and export trades, restaurants and hotels; 25.7 per cent in community, social and personal services; 15.0 per cent in financing, insurance, real estate and business services; and 10.8 per cent in transport, storage and communications. Only 5.5 per cent worked in the manufacturing sector. The printing and publishing industry was the largest manufacturing industry, engaging 37 400 people by the end of 2005, followed by the wearing apparel industry (excluding footwear), food manufacturing industry and the textiles industries, which engaged 21 800, 21 500 and 20 200 people respectively. (Details of the distribution of establishments and people employed by selected major industry groups are given in the Appendices.)

Employment Situation

The labour market further improved in 2005, underpinned by a sustained pick-up in economic activities. The seasonally adjusted unemployment rate decreased from 6.6 per cent in the fourth quarter of 2004 to 5.3 per cent in the fourth quarter of 2005, while the underemployment rate dropped from 3.1 per cent to 2.5 per cent. Total employment increased by around 84 500, from 3 347 000 in the fourth quarter of 2004 to a new high of 3 431 500 in the fourth quarter of 2005.

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, increased by 1.4 per cent in money terms between December 2004 and December 2005. After discounting changes in consumer prices, the average wage rate decreased by 0.3 per cent in real terms.

In December 2005, the average monthly wage rate for supervisory, technical, clerical and miscellaneous non-production workers in the wholesale, retail and import and export trades, restaurants and hotels sector was $11,735. Based on the wage indices, the average wage rate for this group increased by 1.5 per cent in money terms, but dropped by 0.2 per cent in real terms, compared with December 2004.

Over the same period, the average wage rate in the manufacturing sector increased by 2.5 per cent in money terms, or by 0.8 per cent in real terms. The overall average daily wage was $338 for craftsmen and operatives.