This file photo dated Aug 16, 2023 shows a construction worker (right) taking a break from the heat in Hong Kong. (PHOTO / AFP)
Hong Kong’s unemployment rate remained 2.9 percent for November through January, the same as that from October through December, with experts saying that tourism and mega events will improve the city’s labor market by attracting more visitors.
A total of 102,600 people were out of work, dropping by around 3,100 from the previous period. With the city’s labor force falling by 12,800 to 3,799,700, total employment saw a decrease of 9,800, according to figures released by the Census and Statistics Department.
From November through January, the Labour Department recorded an average of 83,634 vacancies per month in the private sector, representing a year-on-year decrease of 9.9 percent and a 2.4 percent decline
The underemployment rate also remained unchanged at 1 percent during the November-through-January period.
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The unemployment rates of most sectors either declined or stayed unchanged compared with the October-through-December period, said Chris Sun Yuk-han, secretary for labour and welfare.
“With labor demand underpinned by continued economic growth, the labor market is expected to stay tight in the near term,” he said.
From November through January, the Labour Department recorded an average of 83,634 vacancies per month in the private sector, representing a year-on-year decrease of 9.9 percent and a 2.4 percent decline over the average figure from the preceding three-month period.
“A 2.9 percent unemployment rate is a low level, indicating near-full employment and sending a positive signal about ample job opportunities in Hong Kong,” said Alexa Chow Yee-ping, managing director of ACTS Consulting.
Looking ahead to the December-through-February period, Chow said she expects the jobless rate in Hong Kong to remain 2.9 percent or decrease 0.1 percent, as visitor arrivals during the Lunar New Year holiday in February recovered to the 2018 pre-pandemic level. With tourism bouncing back, employers in the retail and catering sectors will recruit more temporary or long-term employees, she said.
Pascal Siu, a senior researcher of Our Hong Kong Foundation, said: “if Hong Kong can host more major events in the future, the labor demand in these sectors is expected to remain strong, helping to keep the overall unemployment rate at a lower level”.
The Hong Kong Special Administrative Region government is working hard to attract more people to work in Hong Kong to address the city’s personnel shortage, with various talent immigration programs launched. So far, over 130,000 applications have been approved.
Successive admission of mainland and overseas people through various talent programs contributed to the increase, the spokesperson added.
The efforts have had a positive effect, contributing to an increase in Hong Kong’s population in the past year. According to separate government figures released on Tuesday, the provisional estimate of the Hong Kong population stood at 7,503,100 at the end of 2023, an increase of 30,500 or 0.4 percent from that of 12 months’ earlier. This can be mainly attributed to a net inflow of 51,700 Hong Kong residents in this period.
It marks the second consecutive year of population growth since normalcy resumed in the city, as many residents who stayed outside Hong Kong during the COVID-19 pandemic returned during 2023, a government spokesperson said.
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Successive admission of mainland and overseas people through various talent programs contributed to the increase, the spokesperson added.
Siu said the inflow of talents may not immediately address Hong Kong’s labor problem.
“The programs primarily target specific areas of labor shortage but do not cover all work categories. Moreover, professionals also need time to settle in Hong Kong, which may not immediately increase the local labor force,” he said.
Contact the writer at irisli@chinadailyhk.com
