The seasonally adjusted unemployment rate fell from 5.1% in February-April to a 57-month low of 4.9% in March-May, the Census & Statistics Department says. The underemployment rate rose from 2.4% to 2.6%.

Falls were seen mainly in the decoration and maintenance, sanitary services, and communications sectors. The increases in the underemployment rate were concentrated in the construction, restaurants and hotels, and sanitary services sectors.

Total employment rose from 3,426,800 to an all-time high of 3,438,000. Over the same period, the labour force grew from 3,607,400 to 3,613,000.

The number of jobless people dropped from 180,600 to 175,000. Concurrently, the number of underemployed rose from 85,600 to 95,000.

Labour market outlook

The department said further improvement in the labour market situation will hinge on the continued pick-up in the economy leading to greater job creation for absorbing the new batch of fresh graduates and school leavers entering the labour force.

In May, the Labour Department captured 40,801 private sector vacancies, up 14.3% over the same month last year.