Hong Kong Unemployment Rate Fell to 5.3%

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October 19, 2009 - Hong Kong’s seasonally adjusted unemployment rate decreased from 5.4% in
June - August 2009 to a provisional 5.3% in July - September 2009, according to the latest labor force statistics released today 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, information and communications, and arts, entertainment and recreation sectors.

The underemployment rate remained unchanged at a provisional 2.4% over the same comparison periods. Decreases were mainly seen in the decoration and maintenance, and insurance sectors, offsetting increases in the postal and courier services, and cleaning and similar services sectors.

Total employment in July - September 2009 was at a provisional 3,495,500, about the same as that in June - August 2009 (3,495,300). The labor force decreased by around 7,400 from 3,712,100 in June - August 2009 to a provisional 3,704,700 in July - September 2009.

The number of unemployed persons (not seasonally adjusted) decreased by around 7,700 from 216,800 in June - August 2009 to a provisional 209,100 in July - September 2009. Over the same period, the number of underemployed persons increased by around 1,700 from 88,200 to a provisional 89,900.

Underpinned by the gradual revival of the local economy, the labor market has begun to show signs of improvement.

Hong Kong Secretary for Labour and Welfare, Mr. Matthew Cheung Kin-chung, welcomed the latest drop in the unemployment rate since the global financial tsunami hit Hong Kong 13 months ago.

Mr. Cheung said, "As business conditions gradually improve and the labor market stabilizes, employers may adopt a more positive attitude towards recruitment. This is expected to ease the pressure on the unemployment rate in the near term.

“However, as overseas markets have yet to show visible improvement, a sustained and solid recovery will hinge on a fundamental improvement in the external environment. The recovery path may still be uneven.

“The Government will remain vigilant and monitor closely the labor market situation. We will also continue to promote employment on all fronts through training, retraining and skills upgrading.”