Hong Kong’s Unemployment Rate Fell to 5.1%

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December 17, 2009 - Hong Kong’s seasonally adjusted unemployment rate decreased from 5.2% in August - October 2009 to a provisional 5.1% in September - November 2009, according to the latest labor force statistics released by the Census and Statistics Department of the Hong Kong Special Administrative Region Government.

Decreases in the unemployment rate (not seasonally adjusted) were mainly observed in the wholesale; retail, accommodation and food services; and decoration and maintenance sectors.

The underemployment rate rose from 2.4% to a provisional 2.5% over the same comparison periods. Increases were mainly seen in the construction, and professional and business services sectors.

Total employment increased by around 9 300, from 3 488 300 in August - October 2009 to a provisional 3 497 600 in September - November 2009. Over the same period, the labor force decreased slightly from 3 678 700 to a provisional 3 678 600.

The number of unemployed persons (not seasonally adjusted) decreased by around 9 400 from 190 400 in August - October 2009 to a provisional 181 000 in September - November 2009. Over the same period, the number of underemployed persons increased by around 1 300 from 88 900 to a provisional 90 200.

With the steady recovery of the economy, the unemployment situation has further improved with the latest figure falling for three consecutive periods. In particular, the unemployment rate of the construction sector has dropped for seven consecutive months to 7.6%, while those of all age groups also decreased across-the-board. The decreases were more noticeable in the 15-19 and 20-24 age groups, by 1.1 percentage points to 21.6% and 0.9 percentage point to 11.5% respectively. This shows that the youth unemployment situation is improving gradually.

Hong Kong Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, said, "Total employment reverted to an increase by more than 9 000 in September - November, indicating that the employment situation has started to recover. Looking ahead, as business activities are expected to pick up around Christmas and the New Year, labor demand is likely to increase further during the festive season, which should in turn ease the pressure on the unemployment rate in the near term."

He noted that the continued recovery of the labor market would hinge on the overall business performance and, in particular, the capacity and pace of job creation in the corporate sector.

Mr Cheung said, "With the commencement of construction of the Hong Kong-Zhuhai-Macao Bridge and the expansion of Disneyland, it is expected that the employment situation of the construction sector will improve continuously. In addition, the measure to allow non-Guangdong residents ordinarily residing in Shenzhen to apply for Individual Visit endorsements in Shenzhen to visit Hong Kong will also help boost consumption and the local economy.

"Nevertheless, given the uncertainty over the economic outlook, we shall remain vigilant and continue to closely monitor the labor market situation."