HK's unemployment rate for Q2 stands at 3.2%

HONG KONG -- Statistics released on Thursday showed that Hong Kong's seasonally adjusted unemployment rate stood at 3.2 percent from April to June, the same as that from March to May.

The underemployment rate also remained unchanged at 1.4 percent.

According to the latest labor force statistics released by Hong Kong Census and Statistics Department on Thursday, total employment increased by around 8,800 from 3,662,600 to 3,671,400, and the labor force also increased by around 11,000 from 3,785,900 to 3,796,900.

The number of unemployed persons (not seasonally adjusted) increased by around 2,100 from 123,400 to 125,500. Over the same period, the number of underemployed persons also increased by around 600 from 54,000 to 54,600.

Decreases in the unemployment rate were mainly observed in the construction and manufacturing sectors, while increases were more apparent in the food and beverage service activities, and professional and business services sectors. As to the underemployment rate, a decrease was mainly seen in the cleaning and similar activities sector, offsetting an increase in the foundation and superstructure works of the construction sector.

"Hong Kong's labor market remains tight and in the near term at least, hiring attitudes among businesses remains positive, as foreshadowed by June's HSBC purchase management index. Sluggish demand will keep employers on edge in coming months, but with labor market conditions still tight, we expect the unemployment rate to average 3.3 percent for the second half of this year," said Donna Kwok, HSBC's Greater China economist.

The Secretary for Hong Kong Labour and Welfare Matthew Cheung Kin-chung said, "As the new batch of fresh graduates and school leavers would continue to boost labor supply in the next few months, the employment situation will depend on whether the momentum of job generation can sustain and absorb these newcomers. Labour demand in the corporate sector stays buoyant as reflected by the favorable job vacancy trend. However, the potential impact on business condition and hiring sentiment by the evolving eurozone debt crisis and lackluster performance of major economies remain a major cause of concern. We will stay vigilant and closely monitor development."