The unemployment rate in Hong Kong has dropped to 3.3% in February – March 2008.

According to the latest labour force statistics released by the Census and Statistics Department, the seasonally adjusted unemployment rate decreased from 3.4% in January – March 2008 to 3.3% in February – April 2008. Decreases were mainly in amusement and recreational services, restaurants and hotels, and sanitary services.

The underemployment rate also dropped from 1.9% to 1.8% over the same period. Decreases were mainly in amusement and recreational services, sanitary services, and foundation and superstructure construction.

Statistics show that total employment has increased by 4,500 to 3,539,000 in February – April 2008, and the labour force has increased by 6,500 to 3,660,000. The number of unemployed persons has increased by 1,900 to 120,900 in the same period. The number of underemployed persons decreased by 4,700 to 65,800.

The government commented that the increase in total employment was offset by a larger increase in the labour force, resulting in an increase in the number of unemployed persons. Yet, after discounting the seasonal effect, the seasonally adjusted unemployment rate edged down to 3.3%, the lowest level for more than ten years. The underemployment rate also decreased to the lowest for more than ten years.

In the near future, the economy as well as the pace of job creation in the private sector in absorbing fresh graduates in the summer months will influence the employment situation in Hong Kong.