August 18, 2011

The unemployment rate fell from 3.5% in April-June to 3.4% in May-July. The underemployment rate also declined from 1.8% to 1.7%.
 
Commenting on the figures today, Secretary for Labour & Welfare Matthew Cheung said total employment kept growing strongly in May-July, rising 15,200 to a record high of 3,625,800.
 
New jobs offered by many major economic sectors helped cushion the impact of a notable expansion in the labour supply during the period. Consequently, the number of unemployed people rose only slightly by 500. The seasonally adjusted unemployment rate slightly dropped to 3.4%.
 
Decreases in the unemployment rate were mainly observed in the import-export trade and wholesale, decoration, repair and maintenance for buildings, and warehousing and support activities for transportation sectors.
 
For the underemployment rate, decreases were mainly seen in the arts, entertainment and recreation, and food and beverage service activities sectors.
 
Mr Cheung said the employment situation will continue to hinge on overall economic performance and the capacity of the corporate sector to create jobs. While overall job vacancies are at a relatively high level, some employers have adopted a more cautious attitude towards staff recruitment. Uncertainties in the external environment, especially regarding the economic and fiscal condition of the US and the sovereign debt crisis in the Eurozone, remain a major cause for concern.
 
“We will remain vigilant and closely monitor the development,” he said.
 
Meanwhile, since April last year, the number of new private sector vacancies recorded by the Labour Department has stayed at a high level of about 3,000 per working day on average. This level has been maintained in August so far.
 
In July the number of private sector vacancies posted by the department rose 7.8% on June to 79,345, and was up 18.9% over the same period last year.