Hong Kong Unemployment Rate Remains at 5.4%

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September 17, 2009 - Hong Kong’s seasonally adjusted unemployment rate stood at a provisional 5.4% in June - August 2009, same as that in May - July 2009, according to the latest labor force statistics released today by the Census and Statistics Department of the Hong Kong Special Administrative Region Government.

Decreases in the unemployment rate (not seasonally adjusted) were mainly seen in the construction; warehousing and support activities for transportation; and real estate sectors, while increases were more apparent in the accommodation services; arts, entertainment and recreation; and wholesale sectors.

The underemployment rate also remained unchanged at a provisional 2.4% over the same period. Decreases were mainly seen in the construction and warehousing and support activities for transportation sectors, offsetting increases in the education and wholesale sectors.

Total employment decreased by around 10,000 from 3,505,300 in May - July 2009 to a provisional 3,495,300 in June - August 2009. Over the same period, the labor force decreased by around 6,900 from 3,719,000 to a provisional 3,712,100.

The number of unemployed persons (not seasonally adjusted) increased by around 3,000 from 213,800 in May - July 2009 to a provisional 216,800 in June - August 2009. Over the same period, the number of underemployed persons decreased by around 400 from 88,600 to a provisional 88,200.

The labor market has shown signs of stabilization in recent months, as reflected by the stable seasonally adjusted unemployment rate since April - June 2009.

Hong Kong Secretary for Labour and Welfare, Mr. Matthew Cheung Kin-chung, said, “The near-term employment outlook will much depend on the pace of job creation in the economy relative to that in the labor supply. As the pace of business growth remains uncertain, employers are generally cautious in hiring new hands at this point in time. Coupled with the relatively slow absorption of newcomers, including fresh graduates and school leavers into the labor market this year, the unemployment rate is expected to remain high in the near term.”

“It is noteworthy that the unemployment situation of the construction sector has continued to ease in recent months. In particular, the unemployment rate of the decoration and maintenance sub-sector has dropped significantly, accumulating a total decrease of 9 percentage points for four consecutive periods. It is clear that the Government's efforts to boost employment in the construction sector are bearing fruit.”

“We will continue to monitor closely the labor market situation and canvass suitable vacancies to help job-seekers,” said Mr. Cheung.