Hong Kong Unemployment Rate Rises to 4.6%

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February 17, 2009 - Hong Kong’s seasonally adjusted unemployment rate increased markedly from 4.1% in October - December 2008 to a provisional 4.6% in November 2008 - January 2009, according to the latest labor force statistics released today by the Census and Statistics Department of the Hong Kong Special Administrative Region Government.

Hong Kong’s underemployment rate also increased from 1.9% to a provisional 2.1% over the same period.
The increases in the unemployment rate (not seasonally adjusted) rose in almost all economic sectors. Increases in the underemployment rate were mainly seen in the decoration and maintenance, transport and manufacturing sectors.

Total employment decreased by around 14,300, from 3,544,300 in October - December 2008 to a provisional 3,530,000 in November 2008 - January 2009. Over the same period, the labor force increased by around 2,000, from 3,685,700 to an all-time provisional high of 3,687,700.

The number of unemployed persons (not seasonally adjusted) increased by around 16,400, from 141,300 in October - December 2008 to a provisional 157,700 in November 2008 - January 2009. Over the same period, the number of underemployed persons increased by around 6,300, from 69,800 to a provisional 76,100.

Looking ahead, the employment market will remain weak as the effect of the global financial tsunami is spreading to various economic sectors. A further weakening in labor demand after the Lunar New Year is also expected to translate into an increasing unemployment in the near term.

Hong Kong Secretary for Labour and Welfare, Mr. Matthew Cheung Kin-chung, said that the Government would adhere firmly to the strategy of “stabilizing the financial system, supporting enterprises and preserving employment”, and continue to do its utmost to ease the pressure on employment.

“The Government will leave no stone unturned in creating job opportunities on all fronts,” said Mr. Cheung.
He noted that some 55,000 construction jobs will be created in the next financial year through accelerating infrastructure and minor works projects. The Government will recruit 7,700 civil servants and create about 4,000 temporary openings in the next 14 months. Over 20 statutory bodies will also recruit some 6,000 employees and create about 2,000 temporary jobs or internship opportunities this year.

Mr. Cheung further stressed that the Government “is making every effort to help job-seekers”, pointing out that the Labour Department will continue to organize large-scale job fairs in shopping malls and community halls as well as mini-job fairs at its Job Centres.