HK sees unemployment rate drop for four months to 4.1 pc

Hong Kong’s unemployment rate decreased to 4.1 percent, marking a continuous decline for four months.

The latest labour force statistics released on Monday, noting the seasonally adjusted unemployment rate of the city decreased from 4.3 percent in the period of May to July to 4.1 percent between June and August this year.

The figure was also lower than the market prediction of 4.2 percent, and the unemployed decreased by around 6,300 to 161,900 in June to August.

Almost all major economic sectors saw a decrease in both unemployment and underemployment rates.

For the unemployment rate, more distinct decreases were observed in the decoration, repair, and maintenance for buildings sector; and arts, entertainment, and recreation sector.

Secretary for Labour and Welfare Chris Sun Yuk-han commented the labour market continued to improve alongside the revival of domestic economic activities, partly supported by the second phase of the Consumption Voucher Scheme.

However, he warned the recent tightened financial conditions might pose some constraints and that the government should bring the epidemic under control.

Samuel Tse Kah-hei, an economist at DBS Bank, noted the unemployment rate would keep dropping in September given the relaxed disease prevention measures.

“But the retail industry may struggle for survival considering whether Hong Kong will reopen borders to boost economic performance and investments,” he said.