In the fourth quarter of 2004, Hong Kong's labour force grew by 1.5 per cent over the corresponding period of 2003. The labour force stood at 3.6 million, of whom 55.3 per cent were males and 44.7 per cent were females.

Of those employed, the majority, 85.6 per cent, were engaged in the service sectors — 31.6 per cent in wholesale, retail and import/export trades, restaurants and hotels; 27.5 per cent in community, social and personal services; 15.1 per cent in financing, insurance, real estate and business services; and 11.4 per cent in transport, storage and communications. Only 5 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 2004, 2 067 300 persons were engaged in selected industries in the service sectors, which was 4 per cent higher than the corresponding figure in 2003. Only 165 300 persons were engaged in the manufacturing sector, a decrease of 1.8 per cent compared with a year earlier.

The printing and publishing industry was the largest manufacturing industry, engaging 36 800 persons in December 2004, followed by the wearing apparel industry (excluding footwear), the textiles industries and food manufacturing industry, which engaged 22 500, 20 000 and 19 400 persons, respectively. Details of the distribution of establishments and persons engaged by selected major industry groups are given in the Appendices.

Employment Situation

The labour market further improved in 2004, underpinned by a sustained pick-up in economic activities. The seasonally adjusted unemployment rate decreased from 7.4 per cent in the fourth quarter of 2003 to 6.5 per cent in the corresponding period of 2004, while the underemployment rate dropped from 3.3 per cent to 3.1 per cent. Vacancies registered with the Labour Department from the private sector rose from 215 430 in 2003 to 297 186 in 2004. Total employment increased by around 78 100, from 3 250 400 in the fourth quarter of 2003 to a new high of 3 328 500 in the fourth quarter of 2004.

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 1.3 per cent in money terms between December 2003 and December 2004. After discounting changes in consumer prices, the average wage rate decreased by 1.7 per cent in real terms.

In December 2004, the average monthly wage rate for supervisory, technical, clerical and miscellaneous non-production workers in the wholesale, retail and import/export trades, restaurants and hotels sector was $11,549. Based on the wage indices, the average wage rate for this group decreased by 1.7 per cent in money terms, or by 2.2 per cent in real terms, compared with December 2003.

Over the same period, the average wage rate in the manufacturing sector decreased by 1.7 per cent in money terms, or by 2.2 per cent in real terms. The overall average daily wage was $327 for craftsmen and operatives.