Hong Kong Unemployment Rate Rises to 5%

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March 17, 2009 - Hong Kong’s seasonally adjusted unemployment rate increased from 4.6% in November 2008 - January 2009 to a provisional 5% in December 2008 - February 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 remained stable at 2.1% in both periods (provisional figure for December 2008 - February 2009).

The increases in the unemployment rate (not seasonally adjusted) were mainly seen in the construction, transport, import/export trades, manufacturing and restaurants sectors. As to the underemployment rate, decreases were mainly seen in the decoration and maintenance, and manufacturing sectors, offsetting the increases in the sanitary services, and amusement and recreational services sectors.

Total employment decreased by around 17,500, from 3,530,000 in November 2008 - January 2009 to a provisional 3,512,500 in December 2008 - February 2009. Over the same period, the labor force decreased by around 3,200, from 3,687,700 to a provisional 3,684,500.

The number of unemployed persons (not seasonally adjusted) increased by around 14,200, from 157,700 in November 2008 - January 2009 to a provisional 171,900 in December 2008 - February 2009. Over the same period, the number of underemployed persons decreased by around 200, from 76,100 to a provisional 75,900.

In the near term, the unemployment rate is expected to go up further, as labor demand remains weak given the economic downturn. The employment measures introduced by the Government will go some way towards alleviating the worsening job situation.

Hong Kong Secretary for Labour and Welfare, Mr. Matthew Cheung Kin-chung, said that the labor market had been much affected by the financial tsunami and the economic slowdown. He stressed that the Government would continue to do its best to help the affected employees and job seekers.

“The Financial Secretary has announced in his Budget Speech a series of measures to provide various types of jobs and training opportunities for job-seekers of different backgrounds.

“In particular, HK$400 million (US$51.28 million) non-recurrent funding has been earmarked for the Labour Department to enhance and integrate its various employment programs for youths, middle-aged and disabled persons. Training subsidy to employers will be raised and subsidy period will be extended, where appropriate. Some 44,000 people are expected to benefit from these measures in the next two years.

“Besides, additional funding of HK$13 million (US$1.66 million) will be provided for the Department to enhance various services to help employees who have lost their jobs in redundancy and closure exercises during the financial crisis,” he said.

Mr. Cheung also said that an Internship Program for University Graduates would be launched in August to provide interested university graduates with the opportunities to work as interns and receive training in local or Mainland enterprises for 6 to 12 months. About 4,000 graduates are expected to benefit from the program.

An additional HK$1.1 billion (US$141 million) will also be allocated to provide various types of jobs in other areas, including the introduction of the two-year Operation Building Bright which aims to renovate 1,000 dilapidated buildings and will create 10,000 jobs in the next two years.

“All these measures will cost HK$1.6 billion (US$205 million) and create about 62 000 jobs and internship opportunities in the next three years. Together with the 60 000 employment opportunities announced by the Task Force on Economic Challenges earlier, some 120,000 jobs/training places will be created,” he added.