Hong Kong Unemployment Rate Remains at 5.4%

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August 18, 2009 - Hong Kong’s seasonally adjusted unemployment rate remains at a provisional 5.4% in May-July 2009, same as that in the previous three-month period, 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.

Decreases in the unemployment rate (not seasonally adjusted) were mainly seen in the decoration and maintenance, financing, and arts, entertainment and recreation sectors, while increases were more apparent in the education, insurance, and repair, laundry, domestic and miscellaneous personal services sectors.

The underemployment rate increased slightly from 2.3% to a provisional 2.4% over the same period. Increases were mainly seen in the food services and warehousing and support activities for transportation sectors.

Total employment decreased by around 900, from 3,506,200 in April – June 2009 to a provisional 3,505,300 in May – July 2009. Over the same period, the labor force increased by around 9,800, from 3,709,200 to an all-time provisional high of 3,719,000.

The number of unemployed persons (not seasonally adjusted) increased by around 10,800, from 203,000 in April – June 2009 to a provisional 213,800 in May – July 2009. Over the same period, the number of underemployed persons increased by around 3,700, from 84,900 to a provisional 88,600.

Hong Kong Secretary for Labour and Welfare, Mr. Matthew Cheung Kin-chung, said, “Although the labor market showed signs of stabilization in the second quarter in tandem with the improvements on both domestic and external fronts, the unemployment rate will continue to face upward pressure as business sentiments remain cautious and employers are generally conservative in hiring new hands.

“As the entry of fresh graduates and school leavers into the labor market usually peaks in August, the pressure on employment is expected to be fully reflected in the next two months.”

Mr. Cheung stressed that the Government was very concerned about the employment situation of youngsters. “To strengthen employment support for youth, we have earmarked HK$326 million (US$41.79 million) for enhancing and integrating the Youth Pre-employment Training Program and Youth Work Experience and Training Scheme -the Labor Department’s flagship youth employment programs - to provide youngsters with more flexible and comprehensive employment services. The integrated program is now open for enrolment throughout the year,” he said.

In addition, some 4,400 university graduates have registered so far under the Internship Program for University Graduates since its implementation on August 1.

“I encourage our young people to grasp these opportunities and join the programs that they find suitable so as to enhance their competitiveness and equip themselves,” he said.

Mr. Cheung added that the Government would continue to closely monitor the job creation and employment situation, and canvass suitable vacancies from the market to assist job-seekers.