Unemployment rate in Hong Kong increased in July – September 2008 and is expected to rise further in the near future.

According to the latest labour force statistics released by the Census and Statistics Department, the seasonally adjusted unemployment rate in Hong Kong increased from 3.2% in June – August to 3.4% in July – September 2008. Increases were in wholesale and retail, restaurants, manufacturing and finance.

It is reported that underemployment rate decreased from 1.9% to 1.8% over the same period. Decreases were mainly in decoration and maintenance, and transport.

The total employment in Hong Kong has decreased by 3,200 to 3,543,100, and the labour force has increased by 1,800 to an all-time high of 3,677,200. The number of unemployed persons has increased by 4,900 to 134,000.

The government comments that as some summer workers have returned to schools, the labour force has expanded a bit. The Secretary for Labour and Welfare, Matthew Cheung Kin-chung says that the vacancy level in September may not have reflected the impact of the global financial crisis that is now beginning to be felt. “Looking ahead, unemployment is likely to rise further in the near term. Some sectors are bound to be affected by a contraction in business triggered by the global economic crisis.”