ar2013
ar2013
ar2013
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Economic and Financial Environment<br />
Labour market<br />
Labour demand remained strong in 2013, with privatesector<br />
vacancies rising to a record high, due to stable<br />
economic growth, vibrant inbound tourism and a<br />
favourable hiring sentiment. Labour supply also increased,<br />
lured by robust job and income conditions. Taken together,<br />
total employment climbed to a new high towards the<br />
end of the year, while the unemployment rate and the<br />
underemployment rate hovered at low levels (Chart 5).<br />
Supported by the relatively tight labour market conditions,<br />
nominal wages and earnings continued to improve. In<br />
particular, sizable increases in average employment<br />
earnings for the lowest decile group were partly driven by<br />
the upward adjustment to the Statutory Minimum Wage<br />
rate that came into effect in May. The median monthly<br />
employment earnings also edged up.<br />
Stock market<br />
The Hong Kong stock market saw sharp fluctuations<br />
during the year along with a volatile external environment.<br />
Stock prices made a strong start in January and early<br />
February, but then experienced corrections amid renewed<br />
concerns over the euro area sovereign debt crisis and<br />
uncertainties in the US Federal Reserve’s plan of reducing<br />
the size of the asset purchase programme. After a brief<br />
respite, market sentiment turned negative again amid the<br />
financial turmoil in emerging markets in August. In the<br />
fourth quarter, there were further fluctuations relating to<br />
the US Federal Reserve’s announcement to begin reducing<br />
asset purchases and a rise in Mainland China’s macrofinancial<br />
risk. Overall, the Hang Seng Index gained a<br />
modest 2.9% in 2013 and closed at 23,306 on 31 December<br />
(Chart 6). The average daily turnover of the stock market<br />
Chart 5<br />
Labour market conditions<br />
9<br />
In % of labour force<br />
Million persons<br />
3.8<br />
8<br />
3.7<br />
7<br />
3.6<br />
6<br />
5<br />
4<br />
3<br />
2<br />
3.5<br />
3.4<br />
3.3<br />
3.2<br />
1<br />
3.1<br />
0<br />
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013<br />
Total employment, three-month moving average (Right-hand scale)<br />
Unemployment rate, three-month moving average (Left-hand scale)<br />
3.0<br />
Source: Census and Statistics Department.<br />
Page 36<br />
ANNUAL REPORT 2013 • HONG KONG MONETARY AUTHORITY
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