Hong Kong's jobless rate fell 0.1 of a percentage point from April-June to 4.1% in May-July, the lowest level since mid-1998, the Census & Statistics Department says. The underemployment rate rose slightly to 2.3% from 2.2% over the same period.

Falls in the unemployment rate were mainly observed in the decoration and maintenance, and transport sectors, whereas rises were mainly found in the amusement and recreational services, and real estate sectors.

As for the underemployment rate, increases were mainly seen in the amusement and recreational services, and sanitary services sectors.

All-time high

Total employment rose by 9,000 people to an all-time high of 3.49 million in May-July. Total labour supply expanded by 11,200 to a new high of 3.65 million, owing to an increased number of first-time jobseekers, comprising mainly fresh graduates and school leavers entering the labour market.

Yet as these new entrants had been largely absorbed into employment, the number of jobless people rose by only 2,200 to 157,900. The number of underemployed people grew by 2,300 to 83,500.

Whether the seasonally adjusted unemployment rate will fall to the 4%-mark or below in the near term hinges on the growth in total employment relative to that in the labour supply, especially the labour force participation rate within it.

In July the Labour Department received 46,799 jobs from the private sector, up 21% over the same period last year. On average the department received over 2,200 jobs per working day.