HK’s labor market in ‘state of full employment’
Hong Kong’s latest jobless rate fell to 3.2 percent for the three-month period ended January, thanks to the Chinese holiday which has boosted labor demand in the city.
The seasonally adjusted jobless rate fell from 3.3 percent in the October to December period, the Census and Statistics Department said on Tuesday. The reading is below the median 3.3 percent forecast of economists conducted by Dow Jones Newswires and Bloomberg Newswires.
The vibrant business activity in the run-up to the Lunar New Year boosted labor demand to continually rise in the city, said the Secretary for Labour and Welfare Matthew Cheung Kin-chung, in his comments on the data.
Total employment surged further by about 15,900 during November and January from the previous three months, and the number of unemployed persons fell to 111,800, the lowest level since early 2008, Cheung said.
The latest jobless rate signifies “a state of full employment in the labor market,” the spokesperson added.
In the third quarter between July and September, the rate was also at 3.2 percent, the lowest level since 1998. It declined steadily in the last two years from the in June-August-period of 2009 when it peaked at 5.5 percent.
“It is noteworthy that employment of younger people continued to improve. The unemployment rate for persons aged 15 to 24 went down further by 0.4 percentage point to 7.5 percent,” said Cheung.
New jobs were mainly seen in the foundation and superstructure, professional and business services, as well as food and beverage service activities sectors.
The latest underemployment rate nevertheless rose 0.1 percentage point to 1.5 percent through January 31 from the previous three months. Increases were mainly observed in the decoration, repair and maintenance for buildings, and cleaning activities, according to the government.
As business activity tends to abate after the Lunar New Year holidays and it is customary for employers to review their staffing positions at the beginning of the year, Cheung expects that labor demand would weaken in the near term given that the city’s bleak export outlook and global economy.
In another economic monitor, its latest released by Hang Seng Bank on Feb 12, Ryan Lam and Joanne Yim, who prepared the report, forecasted that Hong Kong’s average jobless rate for the year of 2012 will stand at 3.7 percent, compared with 3.4 percent and 3.5 percent for 2011 and 2010.
“We envisage inbound tourism to expand at a still respectable but less vigorous pace in 2012, as growth in the mainland moderates,” said the report, adding that the impact of the weaker global economy will also soften employment prospects.
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