Hong Kong's unemployment rate rises to 4.5 percent

Hong Kong's unemployment rate rose by 0.6 percent from 3.9 percent to 4.5 percent, the Statistics Department released the figures on Thursday. 

Taking three months' data into account, the seasonally adjusted unemployment rate increased from 3.9 percent between last November and this January to 4.5 percent between last December and this February. 

The underemployment rate also jumped 0.5 percent from 1.8 percent to 2.3 percent when comparing the two three-month-periods. 

More distinct increases were observed for the unemployment rate in the construction sector, retail, accommodation, and food services sector, and arts, entertainment, and recreation sectors. 

As for the underemployment rate, increases were mainly seen in the retail, accommodation, and food services sector and arts, entertainment, and recreation sector. 

The total number of employed decreased by about 33,700 to 3.64 million, and the labor force declined by about 11,000 to 3.81 million between last December and this February. 

The number of unemployed increased by about 22,700 to 157,900, while that of the underemployed climbed by around 17,100 to 86,900. 

Secretary for Labour and Welfare Law Chi-kwong cited the fifth wave of the Covid-19 pandemic as the main reason for the sharp decline in the labor market. 

"The labor market will continue to face pressure in the near term, as the acute local epidemic weighs heavily on consumption-related activities and causing disruptions to a wide range of economic activities," Law said. 

"While the relief measures adopted by the Government should render some support, the labor market development going forward would hinge on how the local epidemic evolves," Law continued as he urged all sectors to join forces to help the government put the fifth wave under control.