The unemployment rate rose to 8.6% in the April-June period, up from 8.3% in the March-May period.

The latest labour force statistics from the Census & Statistics Department also show the seasonally adjusted underemployment rate increased, to 4.3% from 3.8% over the same periods.

Comparing April-June with March-May, the jobless rate rose more noticeably in the restaurants/hotels, wholesale/retail trades, transport, and amusement and recreational services sectors.

For the underemployment rate, increases were seen mostly in the construction, transport and hotels sectors, and to a lesser extent also in the restaurants, wholesale/retail trades and manufacturing sectors.

Labour force grows as job numbers fall

The total labour force increased by around 6,500 - from 3,516,500 in March-May to 3,523,000 in April-June.

Total employment decreased, though, by around 6,200, from 3,229,200 to 3,223,000 between the two periods.

The number of unemployed persons - not seasonally adjusted - increased by around 12,700, from 287,300 in March-May to 300,000 in April-June.

At the same time, the number of underemployed persons rose by about 16,000, from 135,000 to 151,000.

SARS slams job market

Both the unemployment and underemployment rates rose further in April-June. The increase was concentrated in the tourism and local consumption-related sectors, reflecting the continued impact of  SARS on the labour market.

There was also a marked rise in unemployment among younger persons, possibly due to the increased entry of fresh graduates and school leavers into the labour force.

Although SARS had come under control and there were signs of gradual revival in overall business activity more recently, employers generally are still cautious about staffing.

The new batch of fresh graduates and school leavers are also adding to the labour supply. In view of these developments, it is likely that the unemployment rate will remain high in the near term.

Secretary for Economic Development & Labour Stephen Ip said there are signs of gradual revival in overall business activities.

He said the hotel occupancy rate increased from 15% in May to 60%. In addition, the number of daily passengers at the airport has risen from 20,000 in May to 80,000 in July.

As there are quite a number of exhibitions and conventions to be held in Hong Kong next month, he believed hotel occupancy rates will improve further.

He said the scheme allowing Guangdong residents to visit Hong Kong as individuals will further help boost our tourism, hotel, restaurant and retail industries.

From this point of view, there should be improvement in the employment situation in the last quarter, he said.

Training programmes target youths

To enhance the employability of our youths and to ease youth unemployment, the Government has, as part of the $715-million enhanced employment measures announced in June 2003, created 8,350 short-term jobs and increased the number of places under the Youth Pre-employment Training Programme from 12,000 by 6,000 to 18,000.

Together with the 5,000 places already earmarked under the Youth Work Experience and Training Scheme for 2003-04 and the 2,000 places under the Graduate Employment Training Scheme, there will be altogether 33,350 employment/training opportunities for youths this summer.

Recruitment for the short-term jobs is underway and the new recruits are expected to start work next month. A joint enrolment exercise for the training programme and scheme will take place from July 26 to August 18.

Short-term jobs for 39,000 available

Apart from the 33,350 openings for youths, there are also about 39,000 short-term employment/training opportunities created for other age groups under the two employment-related relief packages announced by the Government in May and June.

So far, 16,500 people have already started work/training.

With the removal of Hong Kong from the World Health Organisation's list of SARS-affected areas, there are signs that business in some sectors - such as tourism, retail and catering - are picking up.

The Government will continue its efforts to revitalise the economy, helping to ease the employment situation in the long term.

For more detailed labour-force statistics for March-May 2003, contact the General Household Survey Section of the Census & Statistics Department at 2887 5506.