Employment boost: The Government is rolling out different schemes to provide more jobs and training.

To relieve the blow SARS has dealt on the employment front - the provisional seasonally adjusted unemployment rate increased to 8.3% in the March to May period, up from 7.8% in February to April - the Government is rolling out another package of jobs and training offers.

According to the latest labour-force statistics from the Census & Statistics Department, the underemployment rate also increased, to 3.8% (provisional) from 3.2% over the same periods.

The unemployment rate rose across many of the major economic sectors, including restaurants and hotels, retail, transport, real estate, business services, recreational services and manufacturing sectors.

Underemployment rate increases occurred largely in the construction, transport, restaurants and hotels, manufacturing, education services and recreational services sectors.

The total labour force swelled by about 11 500, from 3.5 million in February to April, to to about 3.517 million (provisional) in March to May 2003. Jobs, though, fell by around 2,800, to about 3.23 million (provisional).

The number of jobless people increased by about 13,300, to about 287,000 (provisional) in March to May 2003. The number of underemployed people rose by about 22,300, to about 135,000 (provisional).

SARS takes its toll on the job market

Both the unemployment and underemployment rates rose to new highs in March to May, reflecting the impact of  Severe Acute Respiratory Syndrome on the labour market. The consumption and tourism-related sectors were particularly hard hit, where there were increased lay-offs resulting in reduced employment almost across the board.

In these hard-hit sectors, more employees were suspended from work or asked to take leave without pay, resulting in higher underemployment.

In these still unsettled though gradually improving business conditions, employers generally could be expected to remain stringent about staffing. This would continue to hold back labour demand.

At the same time, the entry of a new batch of fresh graduates and school leavers was adding to the labour force. This will continue to put upward pressure on the unemployment and underemployment rates in the near term.

Government rolls out more jobs and training offers

To relieve SARS economic impact, the Government will roll out another enhanced package of employment and training initiatives, Secretary for Economic Development & Labour Stephen Ip said.

The package, costing $715 million, will create more than 32,000 additional short-term employment and training opportunities. Of these, 13,000 are training places (6,000 for youths); and 19,050 are short-term jobs (8,350 earmarked for youths).

Together with the 21,500 training places and short-term jobs created under the $432 million relief package implemented in May, a total of 53,500 employment and training openings will be created since the outbreak of SARS.

The new temporary jobs will cover a wide spectrum. They include jobs:

* to enhance environmental hygiene;

* to promote culture, arts, recreation and sports activities, as well as community and personal hygiene;

* to foster community building and improve the ecological environment.

Through collaboration with non-governmental organisations and other community groups, the new programmes will not only create jobs but also help foster social cohesion and community building.

The Government's effort to create employment and training opportunities bears testimony to its commitment to ease rising unemployment and make the best of the current adversity to re-equip and upgrade Hong Kong's workforce and enhance the employability of its young people.

The Youth Work Experience & Training Scheme, Youth Pre-employment Training Programme, and Graduate Employment Training Scheme will be launched next month for school leavers and fresh graduates. 

 It is expected that 25,000 people will benefit under the schemes.

Mr Ip believed that the economy will recover and the employment situation will improve when Hong Kong is removed from the list of SARS-infected areas.

The soon-to-be implemented Closer Economic Partnership Arrangement will also bring in new business opportunities and boost jobs, he added.

Survey methodology

The unemployment and underemployment statistics were compiled from the findings of the continuous General Household Survey.

The survey for March to May 2003 covered a sample of 24,000 households or 76,000 individuals, selected according to a scientifically designed sampling scheme to represent Hong Kong's population.

Data on labour-force characteristics was obtained from the survey by interviewing each member aged 15 or over in the sampled households.

In the survey, the definitions used in measuring unemployment and underemployment follow closely those recommended by the International Labour Organisation.

Detailed analysis of labour force characteristics is given in the report on the General Household Survey which is published four times a year. The next issue of the report covering the quarter April to June will be available by the end of August.

This report and other publications of the Census & Statistics Department can be purchased in person from:

* Government Publications Centre, Ground Floor, Low Block, Queensway Government Offices, 66 Queensway, Hong Kong, phone 2537 1910; or

* the Publications Unit of the Census & Statistics Department, 19th Floor, Wanchai Tower, 12 Harbour Road, Wan Chai, Hong Kong, phone 2582 3025.

Internet users may purchase the publications online at the Statistical Bookstore, at http://www.statisticalbookstore.gov.hk.