The unemployment rate in Hong Kong has decreased to the lowest since the first quarter of 1998.

According to the latest labour force statistics released by the Census and Statistics Department, the seasonally adjusted unemployment rate decreased from 3.6% in September – November 2007 to 3.4% in October – December 2007, the lowest level since January – March 1998. Decreases in unemployment rate were mainly in communications, manufacturing, and decoration and maintenance.

Over the same period, the underemployment rate dropped from 2.2% to 2.1%. Decreases were observed in amusement and recreational services, decoration and maintenance, and retail trade.

It is reported that the total employment increased by 25,700 to an all-time high of 3,533,300 in October – December 2007. The labour force increased by 15,900 to 3,651,100 during the same period. As for the number of unemployed persons, it has decreased by 9,900 to 117,800 in October – December 2007. The number of underemployed persons also decreased by 4,800 to 75,400 over the same period.

The government commented that the unemployment rate dropped as a whole because of a larger expansion in total employment than the labour force.