City’s unemployment rate falls slightly in Nov
The city’s unemployment rate fell to 4.1 percent for the three months ended November from 4.2 percent in the previous period, the lowest since January 2009 as total employment rose for a sixth consecutive month and surpassed its 2008 pre-financial crisis peak, the government said Thursday.
As many as 58,500 jobs were created in the past six months and the number of unemployed people fell notably to 143,300 as of the end of November, from the previous 153,200, hitting the lowest level in almost two years, according to the city’s Census and Statistics Department.
“Thanks to the sustained economic growth and job creation, total employment increased for the sixth consecutive month to an all-time high of 3.54 million,” said Matthew Cheung Kin-chung, the secretary for labor and welfare.
The underemployment rate remained unchanged at 1.9 percent between the September and November period from the previous three months.
New jobs were mainly seen in cleaning, hotels, warehousing and support activities for transportation sectors.
Cheung expects the unemployment rate to remain at its currently low level as the seasonal upsurge in business activities in the run-up to the upcoming festivals will create more positions and help absorb job hunters.
“Employers will continue hiring in the coming months as they try to meet the strength of incoming new orders. With the seasonal holidays around the corner, household confidence and spending look set to perk up further into the New Year,” Donna Kwok, economist for Greater China at HSBC wrote in a report.
External demand is not the only driver of Hong Kong’s job creation and wage growth recovery, as Kwok said the contribution of local demand has also established roots of its own, which is enough to keep things going even if global trade activity dips slightly next year.
“The city’s jobless rate is expected to wind up by 4 percent next February when the Chinese traditional Lunar New Year ends. But it is likely to rebound slightly in the second quarter when the city’s minimum wage ordinance starts taking effect,” Irina Fan, senior economist from Hang Seng Bank said.
Hong Kong’s first minimum wage rate, set at HK$28 per hour will take effect on May 1 next year and it will benefit the city’s 314,600 or 11.3 percent low-paid employees who mainly serve in the catering, cleaning, estate security and retail trades according to government data.
Fan, nevertheless, estimates the impact of the increased rate on Hong Kong’s overall unemployment rate to be relatively mild, particularly in view of the improving economic and labor market conditions.
“Hong Kong’s strong economic momentum has well supported the city’s job market recovery over the year. Since a continued improving economy is well expected for next year, Hong Kong’s unemployment rate will remain stable in 2011,” Fan added.
China Daily
(HK Edition 12/17/2010 page2)
http://www.chinadaily.com.cn/hkedition/2010-12/17/content_11715325.htm