Hong Kong Unemployment Rate Remains At 4.9%

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February 18, 2010 - Total employment increased by around 8,600 from 3,497,100 in October - December 2009 to a provisional 3,505,700 in November 2009 - January 2010. Over the same period, the labor force increased by around 2,100 from 3,669,900 to a provisional 3,672,000.

The number of unemployed persons (not seasonally adjusted) decreased by around 6,400 from 172,800 in October - December 2009 to a provisional 166,400 in November 2009 - January 2010. Over the same period, the number of underemployed persons decreased by around 3,900 from 84,500 to a provisional 80,600.

Hong Kong Secretary for Labour and Welfare Matthew Cheung noted that total employment over the period recorded an increase of 8,600, reflecting the vibrancy in business activities in the run-up to the Lunar New Year holidays, and indicating that the labor market was improving continuously.

“As improving business sentiment and consumer spending should continue to boost labor demand during the Lunar New Year period, pressure on unemployment is expected to ease further,” said Mr. Cheung. “However, in the near term, the performance of the employment market hinges on the overall economic situation, as well as the pace of job creation in the corporate sector.”

“Whilst the trend of the unemployment rate remains stable in general, there is no room for complacency as Hong Kong’s economic outlook is still subject to uncertainties despite an economic rebound and successive improvement since the second quarter of last year. Specifically, the economic recovery in the advanced economies is far from solid. Also, the timing and pace of phasing out extraordinary fiscal stimulus measures in the advanced economies and the rise of protectionist sentiment are risk factors that we have to guard against. We therefore need to continue to be vigilant and closely monitor the labor market situation,” said Mr. Cheung.