Unemployment rate widens to 4.2% in Q1

Food and beverage suffered the most with an 8.6% increase in unemployment rate.

The seasonally adjusted unemployment rate broadened to 4.2% in Q1 from 3.7% in the previous three-month period December 2019 - February, according to the Census and Statistics Department (C&SD). This is said to be the highest in more than nine years.

Food and beverage services activities were severely hit as the unemployment rate surged to 8.6%, whilst the construction sector went upto 8.5% amidst visible slowdown in construction activities. In addition, the unemployment rate of the consumption and tourism-related sectors soared to 6.8%, the highest since the Global Financial Crisis.

Total employment also decreased by around 48,800 from 3.77m in December 2019 - February 2020 to 3.72m in Q1. The number of unemployed persons edged up around 28,100 from 134,100 to 162,200. Over the same period, the labour force also fell around 20,800 from 3,903,000 to 3,882,200.

In addition, underemployment rate also increased from 1.5% in December 2019 - February 2020 to 2.1% in Q1, whilst the number of underemployed persons increased by around 23,700 from 59,100 to 82,800. Declines in total employment and labour force widened further YoY to 3.6% in unemployment and 2.2% in underemployment, both the largest on record.

Meanwhile, the Labour Department (LD) will raise the ceiling of on-the-job training (OJT) allowance payable to employers in H2. It aims to encourage employers to hire elderly persons aged 60 or above, young people, and persons with disabilities and provide them with OJT.