Vexing issue: Financial Secretary Henry Tang says, despite the improvement in the jobless situation, structural unemployment is still a major challenge for Hong Kong.

The unemployment situation has improved, with the seasonally adjusted unemployment rate falling to 7.3% in the October-to-December quarter from 7.5% in the September-to-November quarter. The underemployment rate also edged down, to 3.3% from 3.4%.

Decreases in the unemployment rate were seen mainly in the decoration and maintenance, restaurants/hotels, wholesale/retail trades, communications, business services and education services sectors. 

Number of underemployed also drops

For the underemployed, decreases were concentrated in the construction, communications, transport and real estate sectors.

The total labour force increased by around 7,300, to 3,489,000 in the October-December period, from 3,481,700 in the September-November period.

Total employment increased to a larger extent, by around 18,700 to 3,236,000 from 3,217,300 in the same timeframe.

The number of unemployed people decreased by around 11,400, to 253,000 in October-December from 264,400 in September-November. At the same time, the number of underemployed persons fell slightly, by around 1,000 to 16,000.

Situation improves as economic activity picks up

The unemployment situation continued to improve in October-December, as total employment increased along with the sustained revival in economic activity.

Increased labour demand around the Christmas and New Year Holidays was also a contributing factor. Employment gains occurred fairly extensively across many of the major economic sectors, including in particular the retail trade, transport, real estate, decoration and maintenance, business services, and amusement and recreational services.

Although the employment situation had been improving, the Government will continue to do its best to help those with low education, lesser skills, and limited working experience to enter the labour market. 

Structural unemployment still a challenge: FS

Speaking to reporters this afternoon, Financial Secretary Henry Tang said the structural unemployment is still a major challenge for Hong Kong.

It is difficult to predict how much further the unemployment rate will drop, Mr Tang said, adding that he hopes our economy will improve and enterprises will continue hiring staff.

He said the Government attaches great importance to the issue and has reserved money to tackle the problem although we are now facing a serious fiscal deficit problem.

$1.2b set aside to further tackle unemployment 

It has set aside $1.2 billion to implement three employment-related measures, as the Chief Executive announced in his 2004 Policy Address.

About 11,600 temporary jobs in the public sector will also be extended. The successful Youth Work Experience & Training Scheme will be continued for another two years to find jobs for 10,000 young people. 

A one-year Youth Self-employment Support Scheme will also be introduced to train and assist 1,000 young people to become self-employed.