Figure: Trend of Hong Kong unemployment rate in the past three years

Hong Kong’s latest unemployment rate remained unchanged at 3%. The unemployment rates in various industries generally did not change much, while the underemployment rate rose slightly to 1.2%, mainly in the building decoration and repair industry, cleaning industry, etc.

Secretary for Labour and Welfare Sun Yuhan said that the unemployment rate is still at a low level. Looking ahead, as the economy continues to grow, the labor market should remain tight in the short term. Some economists said that the current unemployment rate is already the natural unemployment rate in society, and Hong Kong is close to a state of “full employment”, reflecting the overall good economy. \Ta Kung Pao reporter Wang Yamao

The Census and Statistics Department released the latest labor force statistics yesterday. The seasonally adjusted unemployment rate for March to May this year was 3%, the same as the figure from February to April. Compared with February to April, the unemployment rate of various industries during March to May varied, but the changes were generally small. In terms of the number of people, the number of unemployed people increased from 113,700 to 116,200, an increase of about 2,500 people.

Underemployment rate rises slightly

At the same time, the underemployment rate rose from 1.1% in February to April to 1.2% in March to May, mainly in the building decoration, repair and maintenance industry, cleaning and similar activities industry, and arts, entertainment and recreation activities industry. The number of underemployed people also rose from 40,500 to 44,700 during the same period, an increase of about 4,200.

In terms of total employment in Hong Kong, the total number of employed people from February to April was 3.6941 million, and it rose to 3.6969 million from March to May, an increase of about 2,800. The total labor force also rose from 3.8078 million to 3.8131 million during the same period, an increase of about 5,300.

Sun Yuhan said that the seasonally adjusted unemployment rate continued to be low from March to May, and the unemployment rate in various industries generally remained at a low level. Although there were different changes compared with the previous three-month period, the number of unemployed people increased slightly by 2,500 to 116,200, but it was still at a low level; the underemployment rate was also at a low level of 1.2%. Looking ahead, Sun Yuhan said that as the economy continues to grow, the labor market should remain tight in the short term.

In an interview with Ta Kung Pao, Mak Sui-choi, associate professor of the Department of Accounting, Economics and Finance at Baptist University, said that a 3% unemployment rate is already considered a relatively low level. Western economists generally define it as the natural unemployment rate. Some people may change jobs or take a break, which is considered temporary unemployment. The lowest unemployment rate in Hong Kong in the past few years was 2.8%, and this level has been maintained this time, reflecting that Hong Kong’s overall economy is good.

Mak Sui-choi pointed out that the unemployment rate cannot be viewed simply by percentage, but also by whether there are changes in the floating population. If many people emigrate or retire, the unemployment rate will also fall. According to government figures, the number of professionals entering Hong Kong has continued to increase, but the unemployment rate has not risen significantly, indicating that more people are employed in Hong Kong, which also provides some upward momentum for the Hong Kong economy. “3% itself is very low, and we can maintain the current level for the time being. We cannot expect it to fall further. It is best if it is not zero, because there will be a natural unemployment rate. Now it is close to the state of full employment.”

Significant changes in the construction industry

As for the underemployment rate, Mak Sui-choi said that underemployment is usually limited to certain types of jobs, including the construction industry, which may be related to the lack of work of casual workers. He believes that the biggest changes in the future may also be related to related industries, but overall it will be related to the transformation of Hong Kong’s economic structure, the global economic situation, and changes in the consumption of citizens and tourists, and normal adjustments will occur.