Hong Kong Unemployment Rate Fell to 5.2%

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November 17, 2009 - Hong Kong’s seasonally adjusted unemployment rate decreased from 5.3% in July - September 2009 to a provisional 5.2% in August - October 2009, according to the latest labor force statistics released 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 observed in the construction, food services, insurance and wholesale sectors.

The underemployment rate remained unchanged at provisional 2.4% over the same comparison periods. Decreases were mainly seen in the food services as well as warehousing and support activities for transportation sectors, offsetting increases in the foundation and superstructure, and arts, entertainment and recreation sectors.

Total employment decreased by around 7,200, from 3,495,500 in July - September 2009 to a provisional 3,488,300 in August - October 2009. Over the same period, the labor force decreased by around 26,000, from 3,704,700 to a provisional 3,678,700.

The number of unemployed persons (not seasonally adjusted) decreased by around 18,700 from 209,100 in July - September 2009 to a provisional 190,400 in August - October 2009. Over the same period, the number of underemployed persons decreased by around 1, 000 from 89,900 to a provisional 88,900.

Hong Kong Secretary for Labour and Welfare, Mr. Matthew Cheung Kin-chung, said, “In particular, the unemployment rate of youths aged 15-19 dropped notably by 3.0 percentage points to 22.7%, indicating that the youth employment situation is gradually improving.

“The unemployment rate of the construction sector has also continued to fall, with the latest figure at 7.9%, down by 1.5 percentage points. The decoration and maintenance sub-sector decreased markedly by 2.2 percentage points to 8.6%, accumulating a total decrease of 13.0 percentage points over six consecutive periods, while the foundation and superstructure sub-sector fell by 1.1 percentage points to 7.7%.

“It is clear that the Government’s all-out efforts to create jobs in the construction sector are continuing to bear fruit.”

Looking ahead, Mr Cheung said that the near-term outlook would depend mainly on the pace of economic recovery and job creation.

“As business conditions continue to improve, employers are expected to adopt a more positive attitude towards new hiring. This will ease the pressure on unemployment. Nevertheless, the decrease in total employment in the latest round of figures suggests that it may take some time for the labor market to keep up with the pace of economic rebound.

“A sustained and solid recovery still hinges on a fundamental improvement in the external environment. We will remain vigilant and continue to monitor closely the labor market situation,” he added.