Hong Kong unemployment rate up to 3.5%

Total employment rose notably in February-April, by 8,200 to 3,585,500 but outpaced by an even bigger increase in the labour force.

The unemployment rate rose from 3.4% in January-March to 3.5% in February-April, while the underemployment rate increased from 1.8% to 1.9%.

According to the figures released by the Census & Statistics Department on Thursday, increases in the unemployment rate were mainly observed in the arts, entertainment and recreation, import-export and wholesale sectors.

Underemployment increases were mainly seen in the arts, entertainment and recreation, and foundation and superstructure sectors, the department said in its report.

The number of unemployed grew by 7,400, while the number of underemployed increased by 2,600.

For young people aged 15-24, the unemployment rate rose from 8.8% to 9%.

Commenting on the figures, Secretary for Labour & Welfare Matthew Cheung said total employment rose notably in February-April, by 8,200 to 3,585,500, amidst continued robust economic growth and positive hiring sentiment in the corporate sector.

“However, as it was outpaced by an even bigger increase in the labour force, unemployment edged up somewhat during the period."

On the short-term outlook, Mr Cheung said in the light of the latest economic data and survey feedback, labour demand is expected to remain strong in the near term.

“However, a pick-up in labour supply growth seems likely in the next few months, with a new batch of fresh graduates and school leavers entering the labour market. The implementation of the statutory minimum wage may also induce some new entrants into the labour market. The impact on unemployment will depend on the pace of job creation relative to the growth in labour supply."