Hong Kong’s Unemployment Rate Rises to 5.2%

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April 20, 2009 - Hong Kong’s seasonally adjusted unemployment rate increased from 5% in December 2008 – February 2009 to a provisional 5.2% in January – March 2009, according to the latest labor force statistics released today by the Census and Statistics Department (C&SD) of the Hong Kong Special Administrative Region Government.

Hong Kong’s underemployment rate remained stable at 2.1% in both periods (provisional figure for January - March 2009).

The increases in the unemployment rate (not seasonally adjusted) were mainly observed in the construction, transportation, accommodation services and financing sectors. As to the underemployment rate, decreases were mainly seen in the retail trade, and decoration and maintenance sectors, offsetting the increases in the manufacturing, and warehousing and support activities for transportation sectors.

Total employment decreased by around 5,500, from 3,513,100 in December 2008 – February 2009 to a provisional 3,507,600 in January - March 2009. Over the same period, the labor force increased by around 9,800, from 3,685,100 to an all-time provisional high of 3,694,900.

The number of unemployed persons (not seasonally adjusted) increased by around 15,200, from 172,000 in December 2008 - February 2009 to a provisional 187,200 in January - March 2009. Over the same period, the number of underemployed persons increased by around 3,100, from 76,100 to a provisional 79,200.

Hong Kong Secretary for Labour and Welfare, Mr. Matthew Cheung, said that the unemployment rate would continue to face upward pressure in the near term given the tough economic environment and weak labor market.

Mr. Cheung said, “The Government is sparing no effort to ease rising unemployment through a multi-pronged strategy. We are implementing progressively the series of measures announced earlier to stabilize the financial system, support enterprises, preserve and create jobs.

“We will closely monitor the employment situation and continue to enhance our employment services on all fronts. We will also make the best of the current adversity to re-equip and upgrade our workforce as well as enhance their employability.

“The Employees Retraining Board will closely monitor the changes in the labor market and adjust the allocation of training places flexibly. The Board plans to provide a maximum of 143,000 training places this financial year to meet the increasing demand,” he added.