Hong Kong Unemployment Rate Rises to 5.4%

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July 20, 2009 - Hong Kong’s seasonally adjusted unemployment rate increased slightly to a provisional 5.4% in April - June 2009, from 5.3% in the previous three-month period, according to the latest labor force statistics released today by the Census and Statistics Department (C&SD).

Increases in the unemployment rate (not seasonally adjusted) were mainly observed in the arts, entertainment and recreation, social work activities and wholesale sectors.

The territory’s underemployment rate remained stable at 2.3% in both periods (provisional figure for April - June 2009). Decreases in underemployment rate were mainly seen in the warehousing and support activities for transportation sector, offsetting the increase in the decoration and maintenance sector.

Total employment decreased by around 8,700, from 3,514,900 in March - May 2009 to a provisional 3,506,200 in April - June 2009. Over the same period, the labor force decreased by around 5,500, from 3,714,700 to a provisional 3,709,200.

The number of unemployed persons (not seasonally adjusted) increased by around 3,300, from 199,700 in March - May 2009 to a provisional 203,000 in April - June 2009. Over the same period, the number of underemployed persons decreased by around 300, from 85,200 to a provisional 84,900.

Hong Kong Secretary for Labour and Welfare, Mr. Matthew Cheung, noted that the rise in the unemployment rate began to show signs of tapering off.

“Although the local business environment remains weak, the global economy seems to have stabilized recently,” said Mr. Cheung. “ The relative stability of our external trade and domestic economic sectors in recent months as compared to that of early this year, coupled with the effect of the Government’s various rounds of relief measures, have helped ease unemployment.

“The unemployment situation of the construction sector has also seen signs of improvement. Specifically the unemployment rate of the decoration and maintenance sub-sector has fallen notably for two consecutive periods. This shows that the Government's efforts to boost employment in the construction sector are beginning to take effect.

“Looking ahead, given the current economic situation and the entry of fresh graduates and school leavers into the labor market in the coming months, the unemployment rate is expected to face upward pressure in the near term. We will continue to be vigilant and monitor the situation closely.”