Hong Kong unemployment rate steady at 4.2%

The underemployed grew by 500 to 71,000 despite increase in total employment by 8,000 people.

The seasonally adjusted unemployment rate stood at 4.2% in the July-September quarter, matching the June-August period, while the underemployment rate also remained unchanged at 1.9%.

Secretary for Labour & Welfare Matthew Cheung said on Tuesday total employment during July-September increased for the fourth consecutive month, up by 8,000 people on the previous period to 3,520,600. It reached its highest level since the November 2008 to January 2009 period, showing sustained growth in labour demand as the economy recovers, according to a government report.

The number of unemployed dropped by 5,700 to 161,800, showing the local employment situation is steadily improving. The number of underemployed, however, grew by 500 to 71,000.

Construction growth
Mr Cheung said the unemployment rate of the construction sector further decreased by 0.4 of a percentage point to 6.6%. Within that sector, the unemployment rate for the foundation and superstructure sub-sector dropped by 0.5 of a percentage point to 6.4% and that for the decoration, repair and maintenance for buildings sub-sector fell 0.2 of a percentage point to 7%.

"This reflects the burgeoning activities of the infrastructure and building safety sectors. Not only do they provide a welcome stimulus to the employment market, they also help lay a sound foundation for Hong Kong's economic development in the future," he said.

He said owing to a larger increase in the youth labour supply than employment, the unemployment rate of the 15 to 24 age group rose by 0.3 of a percentage point to 14.8%.

In tandem with the return to schools of many summer workers following the start of the new academic year in September, it is expected the pressure on youth employment will ease in the near term.

Job forecast
Mr Cheung said the employment outlook will hinge on the pace of economic growth and job creation.

"While the overall economic performance remains strong and business sentiment is still generally positive in hiring new hands, thereby enabling the labour market to remain stable, the slow economic recovery in the US and the ongoing Eurozone debt problem have added to uncertainties in economic prospects. We will continue to be vigilant and monitor developments closely," he said.

The number of private sector vacancies posted by the Labour Department in September grew by 17.2%, from 60,998 in the same period of last year to 71,495, but fell by 4.6% compared to 74,905 in the preceding month.
The number of successful placements increased by 3.4% to 14,333 in August from 13,860 in August last year.