Unemployment rate in Hong Kong dropped to 3.4%

Labour supply boosted by fresh graduates and school leavers.

According to a report, the seasonally adjusted unemployment rate was 3.4% in the March-May period, down on the 3.5% figure for the February-April quarter, the Census & Statistics Department announced today.

The underemployment rate remained unchanged at 1.6%.

Decreases in the unemployment rate were mainly observed in the transportation, and the arts, entertainment and recreation sectors.

For the underemployment rate, an increase was mainly observed in the foundation and superstructure areas of the construction sector, while a decrease was mainly seen in the education field.

The labour force grew by 18,000 to 3,869,700 during the period. The number of unemployed increased by 700 to 134,200, and the number of underemployed grew by 1,400 to 63,200.

Commenting on the latest unemployment figures, Secretary for Labour & Welfare Matthew Cheung said labour supply will continue to be boosted by the entry of fresh graduates and school leavers, and by some job seekers induced by the recent increase in the statutory minimum wage rate.

“However, the resilience of domestic demand should to some extent cushion the pressure on the unemployment rate stemming from the increasing labour supply,” he said.