According to the latest labour force statistics released December 18 by the Census and Statistics Department, the seasonally adjusted unemployment rate decreased from 3.9% in August – October 2007 to 3.6% (provisional figure) in September – November 2007, the lowest level since February – April 1998. The underemployment rate also edged down from 2.3% to 2.2% (provisional figure) over the same period.
Comparing September – November 2007 with August – October 2007, decreases in the unemployment rate (not seasonally adjusted) were observed in almost all major economic sectors, particularly the wholesale trade, restaurants and construction sectors. As to the underemployment rate, decreases were mainly seen in the retail trade, welfare and community services, and restaurants sectors.
Total employment increased by around 13 400, from 3 495 400 in August – October 2007 to an all-time high of 3 508 800 (provisional figure) in September – November 2007. Over the same period, the labour force decreased slightly by around 2 500, from 3 639 000 to 3 636 500 (provisional figure).
The number of unemployed persons (not seasonally adjusted) decreased by around 15 900, from 143 600 in August – October 2007 to 127 700 (provisional figure) in September – November 2007. Over the same period, the number of underemployed persons also decreased, by around 2 000 from 82 200 to 80 200 (provisional figure).
Commentary:
The labour market was very buoyant in September – November 2007 with total employment hitting a historical high of about 3.51 million. Coupled with a slight drop in total labour force, the number of unemployed persons (not seasonally adjusted) fell significantly to less than 130 000, the first time since March – May 1998. As a result, the latest seasonally adjusted unemployment rate decreased further to 3.6%, the lowest level for over nine and a half years.
The Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, welcomed the latest notable drop in the unemployment rate. In November 2007, the Labour Department netted 55 898 vacancies from the private sector, a significant increase of 41.4% over the same period last year. On average, the Department received over 2 500 vacancies per working day.
“These encouraging figures reflected our sustained economic growth and an upbeat labour market,” he said.
However, he stressed that the Government would not be complacent and would keep up its efforts to help those who have difficulty entering the labour market, particularly those from remote districts like Tin Shui Wai and Tung Chung.
Looking ahead, whether the unemployment rate would drop further hinges on the pace of job creation relative to the growth in labour supply during the festival period around Christmas and the New Year
