HK’s jobless rate may exceed 4pc amid graduate employment woes: expert

Hong Kong’s unemployment rate could rise above 4 percent as new graduates struggle to secure jobs due to limited work experience, warned Billy Mak Sui-choi, associate professor at Hong Kong Baptist University’s Department of Accountancy, Economics and Finance.

His comments came as the seasonally adjusted unemployment climbed to 3.9 percent between July and September, up from 3.7 percent in the previous three-month period, according to the Census and Statistics Department.

Speaking to a radio program Wednesday morning, Mak said the recent global economic slowdown and shifts in consumer spending patterns have taken a toll on the local job market.

He noted that tourists’ spending habits have evolved from a heavy focus on shopping to an emphasis on “in-depth travel,” reducing demand in the city’s retail and catering sectors.

At the same time, falling property prices have discouraged developers from launching new projects, driving up unemployment in the construction industry, Mak added.

He cautioned that fresh graduates may take longer to find work amid these headwinds, which could push the overall unemployment rate above 4 percent.

Although Hong Kong’s GDP grew 0.4 percent quarter-on-quarter, Mak said those with lower education levels or less experience may struggle to meet the changing demands of the labor market.

He also pointed out that Hong Kong’s average age has surpassed 40, and middle-aged residents tend to prioritize saving or investment over consumption, limiting the economic benefits for other demographic groups.

Mak urged industries to strengthen retraining programs to help workers transition into new roles and adapt to market changes.

Meanwhile, Michael Lai Cheuk-pun, president of the Hong Kong General Chamber of Small and Medium Business, voiced concern over the rising jobless rate.

However, he expressed optimism that an uptick in visitor arrivals and export figures may signal that the worst is over, adding that these positive trends could support a gradual economic recovery.