Cautiously optimistic: Financial Secretary Henry Tang says through revitalising the economy and attracting more investment, employment will further improve.

Unemployment has improved with the seasonally adjusted rate falling slightly to 7.1% in the February-April quarter, down from 7.2% in January-March. The underemployment rate remains stable at 3.4%.

Comparing the two quarters, falls in the unemployment rate were seen in the decoration and maintenance, wholesale trade, hotels, transport and sanitary services sectors, virtually offsetting the increases seen in the welfare and community services, and miscellaneous personal services sectors.

While underemployment rate decreases were seen in the foundation and superstructure construction and retail trade sectors, increases were seen in the decoration and maintenance, and amusement and recreational services sectors.

Total employment fell by 900, from 3,256,900 to 3,256,000. The total labour force fell slightly more, by around 1,400 from 3,506,400 to 3,505,000. The number of unemployed people fell marginally by around 500, from 249,500 to 249,000l. However, the number of underemployed edged up by around 1,300 from 118,700 to 120,000.

Employment issue still a challenge

Financial Secretary Henry Tang said the employment situation is still one of the Government's major challenges. He hopes through revitalising the economy and attracting more investment, employment will further improve.

Mr Tang said several factors will affect Hong Kong's employment situation, including soaring oil prices, an imminent US interest rate hike and the frustration of the stock market. The Government is closely monitoring the situation to assess their impact on the economy.

He said the entry of a new batch of fresh graduates and school leavers will add pressure to the labour market in the next few months. However, he remains cautiously optimistic that employment will not deteriorate.

Labour market 'buoyant'

Overall labour market sentiment remains buoyant, particularly in tourism-related sectors. During the Golden Week Labour Day holidays 680,000 tourists from the Mainland and overseas visited Hong Kong.

The Individual Visit Scheme for Mainland residents continues to benefit the tourism, hotel, aviation, retail and restaurant trades. With further extension of the scheme in July, 150 million people from 32 Mainland cities will be eligible to visit Hong Kong.

This will further boost Hong Kong's tourism sector and have a positive effect on our employment situation.

Job placements at record high

The Labour Department has continued to receive about 1,000 job vacancies daily from the private sector. It achieved a record-high 7,082 job placements in April, 4% up on the preceding month.

As part of the Government's continuing efforts to promote youth employment, the Labour Department will launch the new Youth Self-employment Support Scheme soon and enrolment will start May 24.

The scheme, costing $30 million, will run alongside the on-going Youth Pre-employment Training Programme and Youth Work Experience & Training Scheme. It aims to prepare and equip about 1,500 young people for self-employment and enhance their employability. Over 30 projects covering the performing arts, personal services and information technology will be run under the scheme.

To help university graduates enter the job market, the department will mount a special job fair at the Central Library on May 27.