Foreword 2001 is a challenging year to the Labour Department. The Hong Kong economy underwent a downward adjustment. The Gross Domestic Product (GDP) growth of only 0.1 per cent in real terms was in stark contrast to the robust growth of 10.5 per cent in 2000. In the quarter ended 31 December 2001, the seasonally-adjusted unemployment rate rose to 6.1 per cent. The dual impact of economic re-structuring and global economic downturn also led to an increase in the number of labour disputes and claims. Despite the ever-increasing work pressure, the Labour Department strengthened its services on many fronts in the past year. We swiftly enhanced our employment services for local workers, helped the more vulnerable groups to secure employment and assisted the unemployed to re-enter the workforce as quickly as possible. At the same time, we also intensified our efforts in promoting good employer-employee relations and safeguarding the rights and benefits of our workforce. Our strenuous efforts proved to be valuable contributions to the society at a difficult time: the number of placements in 2001 reached 62 838, representing an increase by 6 per cent over the previous year, and we made the record score of achieving 5 718 placements in a single month; 12 066 young persons received training under the Youth Pre-employment Training Programme. 3 800 trainees decided to pursue further studies, while more than 6 500 of the remaining trainees secured employment. A very encouraging placement rate of almost 80 per cent was achieved; a total of 2 405 middle-aged job-seekers was placed through the tailor-made Re-employment Pilot Programme for the Middle-Aged; 2 348 disabled job-seekers succeeded in getting a job with our assistance, the historical highest since the establishment of the Selective Placement Division; 157 786 inspections were conducted to combat illegal employment so as to protect the employment opportunities of local workers; legislative proposals were put forward to restore the long-term financial viability of the Employees Compensation Assistance Scheme, to recognise Chinese medicine for entitlement to employee benefits under labour legislation and an administrative scheme, and to improve benefits to employees suffering from noise-induced deafness by reason of their employment under the Occupational Deafness Compensation Scheme; and improvement in safety performance continued in 2001. A total of 28 518 industrial accidents was recorded in 2001, representing a drop of 15.3 per cent compared with the previous year. The construction industry recorded the most remarkable improvement, with a drop of 22.8 per cent in accident figure and 23.5 per cent in accident rate.   The adverse effect of economic restructuring and cycles will continue to affect the local labour market in the coming year. However, we are determined to brace the storm and we will steadfastly continue to give our best to serve the community. With concerted efforts of the Government, employees and employers, I am confident that we will continue to be one of the leading labour administrators in the world.