Hong Kong’s jobless rate flat at 3.4 pct, employment outlook remains clouded on external uncertainties

Hong Kong’s Census and Statistics Department released the latest labor force statistics today that indicated that the country’s seasonally adjusted jobless rate remained flat at 3.4 percent in the June to August 2016 period, the same as in May to June 2016 period. Also, the underemployment rate remained flat too at 1.4 percent in the two periods.

On sequential basis, the movements in the jobless rate, seasonally-unadjusted in different sectors varied.  A rise was mainly witnessed in business and professional services sector, whereas a drop was seen in the construction sector. For underemployment rate, rises were registered in the foundation and superstructure works of the construction and retail sectors, whereas decreases were seen in the food and beverage service activities sector and the arts, entertainment and recreation sector.

Total employment in Hong Kong rose by about 5,400 from about 3,811,400 in the May to June 2016 period to 3,816,800 in the June to August 2016 period. In the same period, the labor force also rose by about 7,700 to 3,958,000. Meanwhile, the number of jobless persons, seasonally unadjusted rose by about 2,400 to 141,200 in June to August period. The number of underemployed people in June to August 2016 was 55,900.

"The labour market held largely stable in overall terms in June - August 2016, with both the seasonally adjusted unemployment rate and the underemployment rate staying at 3.4% and 1.4% respectively for the sixth consecutive period. Total employment and the labour force grew modestly further over a year earlier”, said Secretary for Labour and Welfare Matthew Cheung Kin-chung.

According to Cheung, the labor market has continued to remain resilient so far in 2016; however, the near-term outlook for employment continues to be clouded by the lingering external uncertainties and their possible impact on local consumption and business sentiment.