Hong Kong Unemployment Rate Falls to 4.6%

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March 18, 2010 - Hong Kong’s seasonally adjusted unemployment rate decreased from 4.9% in November 2009 - January 2010 to a provisional 4.6% in December 2009 - February 2010, 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 observed in the foundation and superstructure, retail and food services, cleaning activities and warehousing and support activities for transportation sectors.

The underemployment rate declined from 2.2% to a provisional 2.1%. Decreases were mainly seen in the decoration and maintenance, and transportation sectors.

Total employment increased by around 7,900 from 3,505,700 in November 2009 - January 2010 to a provisional 3,513,600 in December 2009 - February 2010. Over the same period, the labor force increased by around 700 from 3,672,000 to a provisional 3,672,700.

The number of unemployed persons (not seasonally adjusted) decreased by around 7,300 from 166,400 in November 2009 - January 2010 to a provisional 159,100 in December 2009 - February 2010. Over the same period, the number of underemployed persons decreased by around 2,400 from 80,600 to a provisional 78,200.

Hong Kong Secretary for Labour and Welfare, Mr. Matthew Cheung, said that the notable drop in unemployment in December 2009 - February 2010 was mainly due to a significant job gain of 7,900 led by the pick-up in overall economic activities.

“In fact, total employment recorded a solid increase of 8,600 in the previous quarter, i.e., November 2009 - January 2010. This indicates that the labor market is continuing to revive and that many employers are in a stronger recruiting mood,” said Mr. Cheung. “Given the positive business sentiment and market feedback on vacancies, unemployment is likely to ease further in the next couple of months. Beyond that, the outlook will hinge on the external environment and the pace of economic growth, in particular, the number of jobs created for absorbing the new batch of fresh graduates and school leavers entering the labor market during this summer.”