Hong Kong unemployment stays at 4.6%

Figures show that companies remained active in recruitment that absorbs the concurrent increase in labour supply.

The seasonally adjusted unemployment rate stood at 4.6% in the April-June quarter, matching the March-May period, the Census & Statistics Department says, adding the underemployment rate also remained unchanged at 2%.

Decreases in the unemployment rate were mainly observed in the construction, social work, and financing sectors.

Increases were more apparent in the postal and courier activities, manufacturing, and education sectors.

Decreases in underemployment rate were mainly seen in the transportation and wholesale sectors, offsetting increases in the professional and business services, and warehousing and support activities for transportation sectors.

Total employment grew by 8,800 to 3,492,100. Over the same period, the labour force grew by 8,300 to 3,664,000. The number of unemployed fell by 600 to 171,800. Underemployed fell by 1,000 73,700.

Job rejuvenation
Secretary for Labour & Welfare Matthew Cheung said it was the first time since the December-February quarter that total employment had increased, showing companies have become active in recruitment and new jobs created can absorb the concurrent increase in labour supply.

He said the unemployment rate of the construction sector decreased from 8.5% to 7.6%. The unemployment rate for the decoration, repair and maintenance for buildings sub-sector fell two percentage points to 8.7%, and that for the foundation and superstructure sub-sector decreased by 0.6 percentage point to 7.2%.

He noted with the increased supply in the labour market arising from the entry of fresh graduates and school leavers, the unemployment rate of the 15-24 age group grew by 1.1 percentage points to 12.2%. The jobless rate for the 15-19 age group fell slightly from 20.6% to 20.4%, whereas that for the 20-24 cohort rose from 9.8% to 11.1%, up 1.3 percentage points.

Economy good
"Hong Kong's overall economic performance remains positive. Whilst companies adopted a more cautious approach in hiring when the Eurozone debt crisis surfaced in April and May, with the external environment stabilising recently, they are now in a better recruiting mood," he said.

"Looking ahead, the employment situation will still hinge on the pace of economic growth, in particular whether the number of jobs created can continue to absorb the entry of fresh graduates and school leavers into the labour market in the next few months.

"The Eurozone debt crisis and its contagion may still pose uncertainties and challenges to the local labour market."
In June the number of private sector vacancies posted by the Labour Department grew 33.3% over a year earlier from 45,983 to 61,302, and rose slightly by 0.3% when compared to 61,089 in the preceding month.