1981 Population Census Preliminary Report on Labour Force Composition

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2 1981 Population Census Preliminary Report on Labour Force Composition Section 1 - Introduction Section 2 * Broad conclusions Section 3 * Detailed findings (i) Labour force participation and unemployment (ii) (iii) Economic characteristics of the employed population Characteristics of the unemployed Section k - Comparison with September 1980 Labour Force Survey Appendix - Definitions of Terms

3 UNIVERSITY OF HONG KONG LIBRARY This book was a gift from Census & Statistics Dept., Hong Kong

4 1. INTRODUCTION 1.1 No labour force survey was conducted for March 1981 in view of the proximity of the 1981 Population Census, A 5% sample of the population enumerated in the Census was taken to provide estimates of the magnitude of employment and unemployment, and the composition of the labour force in March this year* The sample covered only the landbased civilian population* Hotel transients and inmates of institutions were excluded. This report presents the findings of this sample and makes comparison with those of the September 1980 Labour Force Survey. The figures for March 1981 are provisional and will be superseded by the final results of the 1981 Population Census when they become available. 1*2 With effect from August 1981, the labour force survey will be converted into a continuous General Household Survey, the report on which will be published on a quarterly basis. 2. BROAD CONCLUSIONS 2.1 The broad conclusions of this preliminary analysis are as follows (see the Appendix for the definitions of terms) :- (i) the estimated total number of unemployed persons in March 1981 was ? (ii) this figure represents ^*1# of the labour force which was estimated to be ; (iii) of the unemployed figure : 30.2# were job-seekers; 29*0# were people temporarily laid off work; 6*3# were people who had a new job but who had worked less than the number of hours stipulated in the definition of "unemployment"; 22.k% were not seeking work because of temporary sickness; and a further 12*1$ were not seeking work because they believed suitable work was not available; (iv) the k.1% unemployment rate in Hong Kong may be broadly compared with the figure of 7*3$ for the U.S.A. (February Bureau of Labour Statistics) but caution is required in comparing the rates because there are differences in the definition of "unemployment 11 «The U.S.A. definition uses a minimum age limit of 16 (Hong Kong's is 15) and has no prescribed minimum number of hours of work in the week in question (Hong Kong uses a minimum of 15 hours); moreover, discouraged job-seekers and the temporarily sick who were not seeking work are excluded from the U.S.A. definition of "unemployment 11 * Adjusting the Hong Kong figure as far as possible to conform with the U.S.A. definition, then the unemployment rate in Hong Kong becomes 2.7#* 3* DETAILED FINDINGS (i) Labour force participation and unemployment 3.1 The overall labour force participation rate was 66.7#; the unemployment rate, k+<\%. Table 1 below shows the sex- and age-specific labour force participation rates and unemployment rates.

5 - 2 - Table 1. Labour force participation rates by age and iisex iiand unemployment, Age group ^ & over Labour force participation rate Male Female if Unemployment i*at A * Overall * unemployment rate for those aged 60-6k only 3.2 The labour force participation rate for males increased from a low level of kj& in the age group to a maximum of 99# in the age group and remained at about this high level till the age of 50, For females, the highest participation rate was in the age group The unemployment rate was high for the younger ages It dropped to a minimum of about 2.3# in the age group 30-39* rising again to reach 6.9# for the age group *3 Table 2 below shows the labour force participation rates and unemployment rates by geographical area. Table 2* Labour force participation rates and unemployment rates by geographical area Area Hong Kong Island Kowloon New Kowloon New Towns and N.T. Market Towns fiural N.T. Overall Labour Force participation rate Unemployment rate «^ Rural areas had the lowest labour force participation rate but the highest unemployment rate* In urban areas, Kowloon, New Kowloon and the New Towns and N.T. Market Towns had about the same participation rate, whereas Hong Kong Island had a lower rate. The unemployment rate was higher in New Kowloon, although this was not significantly different from the rate in the New Towns and N.T. Market Towns.

6 Table 3 below shows the labour force participation rates and unemployment rates by type of housing. Table 3. -Labour force participation rates and unemployment rates by type of housing Type of housing Permanent Temporary Overall Labour force participation rate ? Unemployment rate k.o 5*1 *f Both the labour force participation rate and the unemployment rate were significantly higher in areas where the kind of housing was of the 'temporary structure* type (see the Appendix for the definition of the term). (ii) Economic characteristics of the employed population 3.7 Table k below shows the percentage distribution of the employed population by activity status. Table k. distribution of employed population by activity status Activity status Employers Outworkers Self-employed (hawkers) Self-employed (others) Employees Unpaid workers, on leave and others k * The majority (85$) of the employed population were employees; 9# were self-employed and outworkers and k% were employers (see the Appendix for the definitions of terms). 3.9 Table 5 below shows the percentage distribution of the employed population by educational attainment.

7 Table 5. distribution of employed population by educational attainment Educational attainment Primary and below Secondary Matriculation or other post-secondary University Technical or vocational training 47* ?# of the employed population had only primary education and below; and another 41# had secondary education. About 4# had university education. 3«11 Table 6 below shows the percentage distribution of the employed population by occupation. Table 6. distribution of employed population by occupation Occupation Professional, technical and related workers Administrative and managerial workers Clerical and related workers Sales workers Service workers Agricultural, animal husbandry and forestry workers and fisherfolk Production and related workers, transport equipment operators and labourers Unclassifiable *12 Over half of the employed population were in production occupations; and a quarter in sales and service occupations. Only 6$ of workers were in professional occupations; and J>% in administrative and managerial occupations Table 7 below shows the percentage distribution of the employed population by industry.

8 - 5 - Table 7* distribution of employed population by industry Industry Agricultural, forestry, fishing; mining and quarrying Manufacturing Electricity, gas and water Construction Wholesale and retail trade, restaurants and hotels Transport, storage and communication Financing, insurance, real estate and business services Services Unclassifiable 1.3 Vi k *0 of the employed population were in manufacturing. One-fifth of workers were in wholesale and retail trade, restaurants and hotels; and another one-fifth in business and other services* 3.15 Table 8 below shows the percentage distribution of the employed population by hours of work. Table 8. distribution of employed populationca) by hours of work per week Hours of work per week Under 20<b) ko - k<) & over Average weekly hours Note: (a) Excluding farmers and fisherfolk, and persons who were on leave, or who were temporarily absent from their regular jobs because of industrial dispute. (b) Including employers and self-employed who were engaged in productive work for less than 15 hours during the seven days before enumeration (the hour criterion did not apply to these categories of workers in classifying them as "economically active 11 )

9 Nearly half of the employed population worked ^0 - ^9 hours in a week* However, as many as one-fifth reported that they had worked 60 hours or more during the week before enumeration. The average weekly hours of the employed population were ^9«3 # 1? Table 9 below shows the percentage distribution of the employed population by employment earnings. Table 9* distribution of employed population by employment earnings Earnings (HK$) tinder *foo koo Jf ^ k 000 St over Median employment income *» J* $ *18 20# of the employed population earned less than $1 000 a month in February 1981; 7% earned more than $** 000. The median monthly earnings were $ (iii) Characteristicsof the unemployed 3.19 Table 10 below shows the percentage distribution of the unemployed and the unemployment rates by educational attainment. Table 10. distribution of unemployed persons and unemployment rates by educational attainment Educational attainment Primary and below Lower secondary Upper secondary University and other post-secondary Unemployment rate Unemployed persons having had a previous job M 3.<* First- time ^) job- seekers ^<b) 0.7(b)

10 - 7 - Note: (a) Including a small proportion of unemployed persons who had never worked before but were not actually looking for work because of temporary sickness, or because they believed suitable work was not available* (b) Weighted average of unemployment rates in the same column. 3*20 57$ of the unemployed had primary education and below; and over 6% had university and other post-secondary education. For unemployed persons who had had a previous job, the unemployment rate was higher for the less educated; for first-time job-seekers, the rate was about the same for different levels of education* 3.21 Table 11 below shows the percentage distribution of the unemployed (those who had had a previous job) and the unemployment rates by last occupation. Table 11* distribution of unemployed persons having had a previous job and unemployment rates by last occupation Last occupation Professional, technical and related workers Administrative and managerial workers Clerical and related workers Sales workers Service workers Agricultural, animal husbandry and forestry workers and fisherfolk Production and related workers, transport equipment operators and labourers Dnc lassi f iable 2.8 0, Unemployment rate k.k (a) 3.Mb) Note: (a) The rate for this group has not been computed because the number in the sample was too small. (b) Weighted average of unemployment rates in the same column To a significant degree f the occupational pattern of the unenployed reflected that of the employed population as a whole. The majority (62#) of unemployed persons were in production occupations; about 17# in service occupations. Some variations in the magnitude of unemployment between occupational groups do exist, however* The unemployment rate varied from %«%# in agricultural and fishery occupations to 0*7$ in administrative and managerial occupations.

11 - 8-4* CQMPAEISON ifflth SEPTEMBER 1980 LABOUR FOfiCE SURVEY 4.1 The labour force participation rate increased from 63.8$ in September 1980 to 66*7$ in March In absolute terms, the labour force increased by 95 8?0 from in September 1980 to in March It is estimated that two-thirds of the increase in the labour force were due to the combined effect of change in the age structure of the population over the past six months, and immigration (between September 1980 and March 1981) into Hong Kong of persons who had joined the labour force since September *2 The unemployment rate derived from the 1981 Population Census was 4.15IS and that from the September 1980 labour force survey was 4.3$. There was a decrease in the rate of 0*2 percentage point over the past six months. 4.3 However, there are usually substantially more first-time job-seekers (people who have just left school) in September than in March* Discounting the seasonal influence (i.e. assuming the same number of first-time job-seekers in September 1980 and March 1981), the actual unemployment rate in September 1980 would have been 3»85f>; this indicated an increase in the unemployment rate of 0.3 percentage point between September 19&0 and March 1981 (from 3»8# to 4.1#). In other words, the unemployment rate has been rising gradually since March 1979 when the rate was at its lowest point of 2.3#. Although there was an increase in the level of unemployment over the past six months, there was also an increase in job opportunities taken up because the size of the labour force rose by Of the unemployed, the percentage of job-seekers decreased from 56*6# in September 1980 to 30.3# in March 1981 (in terms of the proportion of the total labour force from 2.4# to 1.2$), and the percentage of those who were temporarily laid off work increased from 11«1JS to 29-0&.

12 - 9 - APPENDIX : Definitions of Terms 1. ACTIVITY STATUS - The relationship between a person and the organisation in which he works and his relation to others within the organisation. ^ Employer - A working partner, director or proprietor of a concern employing at least one other person. ^k) Employee - One who works for an employer (private or government) for salary or wages, 'commission, tips, piecerates, or pay in kind. This category includes paid family workers but excludes outworkers as defined below. (c) Outworker - An employee who is free to take his work home or anywhere he likes, (d) Self-employed - One who works on his own account, neither employed by someone else nor employing others for wages. (e) Unpaid family worker - One who works with no pay in a family business * (f) Other unpaid worker - One who works with no pay for some charitable or religious organisation* * ECONOMICALLY ACTIVE POPULATION (LABOUR FORCE) - Persons aged 15 and over who were engaged in productive work for at least 15 hours during the seven days before enumeration, or who were self-employed, employers, farmers and fisherfolk, or who were on leave or on industrial dispute during the reference period, and persons aged 15 to 6k who would have been engaged in productive work but were currently unemployed. * ECONOMICALLY INACTIVE POPULATION - Persons who were not in the labour force. * EMPLOYED POPULATION - The economically active population excluding those unemployed., UNEMPLOYED POPULATION - Persons between 15 and 6k years of age and not of independent means, who during the seven days before enumeration worked less than 15 hours but were seeking work (the hours criterion did not apply to employers, the self-employed, and farmers and fisherfolk). This category excludes those on leave/holiday or on industrial dispute during the reference period but includes those who were waiting to take up a job 6r just commencing work, or those who were not seeking work because they believed suitable work was not available, or because of temporary sickness; or those who were temporarily or indefinitely laid off work without pay. (Special rules apply to farmers and fisherfolk: Farmers were classified as unemployed only if they had no land to farm and were not employed by someone to take part in farming operations during the reference period. Similarly, fisherfolk were classified as unemployed only if they had no fishing-tackle to fish with and were not employed by someone to engage in fishing operations during the reference period.). LABOUR FORCE PARTICIPATION RATE - The proportion which the number of persons aged from 15 upwards who were working or unemployed during the reference period bears to the total number of persons aged 15 and over.

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