Sustained pick-up: Financial Secretary Henry Tang said he is very pleased to see the jobless rate fall to 6.9％.

A sustained pick-up in the economy has led to continuous growth in total employment outpacing that of the labour force.

The April-to-June jobless rate fell to a 28-month record low of 6.9%, a dip of 0.1% over March to May. The underemployment rate held stable at 3.5%.

The unemployment rate has been steadily on a downward trend from the peak of 8.7% in May to July last year.

The quarter also saw total employment soar by around 13,300 - from 3,268,700 to an all-time high of 3,282,000. The total labour force rose by a smaller extent - by around 10,200 - from 3,512,800 to 3,523,000.

HK economy still facing structural adjustment

Commenting on the figures, Financial Secretary Henry Tang said he is very pleased to see the rate fall below 7%.

But he said although the general economy has continued to improve, the employment situation is still full of challenges as Hong Kong is going through a structural change. He admitted the new batch of school leavers entering the job market next month will create pressure.

"The Government will continue to facilitate the market, and co-operate with the business and labour sectors to create more jobs," he said.

Falls in the unemployment rate were mainly seen in the foundation and superstructure construction, retail trade, restaurants, transport and sanitary services sectors.

A fall in the underemployment rate was seen in the sanitary services sector, while a rise was seen in the amusement and recreational services sector.

The number of unemployed dropped by about 4,100, from 244,100 to 240,000. The number of underemployed went up by 100 to 122,000.

In the next few months, graduates and school leavers may continue to affect the labour force and unemployment figures. Yet these newcomers can be expected to be absorbed into the labour market gradually, as economic growth triggers more job creation.

Last month, the Labour Department achieved another record-high of 7,488 job placements, up 1.6％ from the peak in May. In the first half of 2004, it has successfully placed 39,303 job seekers, representing an increase of 30％ over the same period last year.

The department has continued to receive about 1,000 jobs each working day from the private sector, as compared with 700 in the past. The trend has been sustained since early February and shows labour market sentiment remains generally buoyant.

The boom in tourism has continued to benefit the hotel, aviation, retail and restaurant trades. The Individual Visit Scheme has so far brought in about 2.4 million Mainland tourists, resulting in an estimated spending of $14.9 billion.

With the further extension of the scheme in July, 150 million people from 32 Mainland cities will be eligible to visit Hong Kong, which will boost tourism and enhance local employment.

Young job seekers will put pressure on employment. But the Government is fully prepared to cope.

About 23,000 training places and job-attachment opportunities will be provided under three programmes - the Youth Pre-employment Training Programme, the Youth Work Experience & Training Scheme and the Youth Self-employment Support Scheme - to enhance young people's employability and equip them for the job market.