SECRETARY FOR Education and Manpower Fanny Law Fan Chiu-fun claimed last week the worst wave of lay-offs was over. Her reading of the economic barometer, however, does not quite tally with the gloomy mood and job prospects of those who had to report her comments.
Mrs Law assured legislators that companies had reported fewer job cuts to come because of improved external trade and increased orders.
The media industry, which relies primarily on advertising, is seen as a harbinger of what is in store for other sectors. There is hardly a silver lining in sight. As the policy secretary appeared in the chamber, employees of Next Media were exchanging e-mails about rumours of another imminent restructuring.
The group sacked 180 workers about 10 weeks ago. In January, it announced a loss of $70 million during the preceding six months. Those spared in the last round are now worried about their jobs again.
ACNielsen Media International estimated total advertising spending last year at $29.4 billion, registering a moderate 6.9 per cent growth over the previous year. The increase, however, was attributed largely to the expansion of outdoor adverts, including those on television screens installed in buses and mini-buses.
Last year, radio stations suffered a drop of 17.4 per cent, or $173 million, in ad revenue, which explains Commercial Radio's move to cut pay six to 12 per cent.