Hong Kong's unemployment rate falls to lowest rate in 4 years

Hong Kong's unemployment rate declined by 0.1% in the second quarter to a figure not seen since the pandemic broke out four years ago, data from the Census and Statistics Department revealed.

The unemployment rate dropped to 2.9% in the second quarter of the year, with the number of unemployed people staying low at around 113,600.

This is the first time since the coronavirus took a grip over the world that Hong Kong's unemployment rate went below three per cent, according to reports.

The South China Morning Post reported that the last time it went under was in the April to June period of pre-pandemic 2019, when Hong Kong also reported a 2.9% unemployment rate.

By sector, the decline in unemployment rate was recorded in the retail (3.5%) and accommodation services (3.0%) sectors.

"Some sectors also saw declines in unemployment rates, notably the arts, entertainment, and recreation sector," the Hong Kong government said in a media release. "The unemployment rates of the remaining sectors either held steady or increased but stayed low in general."

Labour market improving

Meanwhile, Hong Kong's underemployment rate also declined slightly to 1.1%, while the labour force and total employment continued to increase by around 15,000.

"Both the labour force and total employment increased further, by 15,400 and 15,000 to 3,802,400 and 3,688,800, respectively," said Acting Labour Secretary Ho Kai-ming in a statement.

The statistics indicate the labour market's continuous improvement alongside the local economic recovery, according to the official.

"The labour market should improve further in the coming months as the economic recovery gathers further strength," Ho said.

Reliance on foreign talent

The decreasing unemployment rate comes as Hong Kong taps the foreign workforce to alleviate the talent shortage reported by nearly three-quarters of employers in the financial hub.

In June, the government announced a new labour importation scheme to bring in 20,000 foreign workers for the construction and transportation sectors.

In May, the government also expanded its Talent List to include a total of 51 professions from nine sectors.

"The expanded list helps us attract more high-quality talent supporting the high-quality economic and social development of Hong Kong," a government spokesperson previously said.