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According to the latest labour force statistics released today (May 19) by the Census and Statistics Department (C&SD), the seasonally adjusted unemployment rate decreased from 3.4% in January - March 2008 to 3.3% (provisional figure) in February - April 2008. The underemployment rate also edged down from 1.9% to 1.8% (provisional figure) over the same period.
Comparing February - April 2008 with January - March 2008, decreases in the unemployment rate (not seasonally adjusted) were mainly observed in the amusement and recreational services, restaurants and hotels, and sanitary services sectors. As to the underemployment rate, decreases were mainly seen in the amusement and recreational services, sanitary services and, foundation and superstructure construction sectors.
Total employment increased by around 4 500, from 3 534 500 in January - March 2008 to 3 539 000 (provisional figure) in February - April 2008. Over the same period, the labour force increased by around 6 500, from 3 653 500 to 3 660 000 (provisional figure).
The number of unemployed persons (not seasonally adjusted) increased by around 1 900, from 119 000 in January - March 2008 to 120 900 (provisional figure) in February - April 2008. Over the same period, the number of underemployed persons decreased by around 4 700, from 70 500 to 65 800 (provisional figure).
Starting from May 2008, the seasonally adjusted unemployment rate is compiled by the X-12 ARIMA method to replace the previous X-11 ARIMA method. The seasonally adjusted unemployment rates since November 2006-January 2007 have also been revised using the new method. X-12 ARIMA method is an update to the X-11 ARIMA method with enhanced modelling and diagnostic capabilities. The X-12 ARIMA method has now been a standard method used by statistical offices for performing seasonal adjustment of statistical series in many countries/territories. Since the two seasonal adjustment methods are indeed very similar, the revision made to the seasonally adjusted unemployment rate series due to the use of the new method is insignificant. The revised time series as from November 2006 - January 2007 onwards can be found on the website of the C&SD (http://www.censtatd.gov.hk).
Commentary
The labour market remained buoyant, with total employment showing a modest expansion in February - April 2008. As this increase was more than offset by a larger increase in the labour force, the number of unemployed persons (not seasonally adjusted) increased moderately. After discounting the seasonal effect, the seasonally adjusted unemployment rate nevertheless edged down to 3.3% in February - April 2008, back to the lowest level for more than ten years. Meanwhile, the underemployment rate decreased further to 1.8%, also the lowest level for more than ten years.
The near-term employment outlook will hinge on how the moderation in global economic growth affects the local economy and in particular the pace of job creation in the private sector, especially during the summer months, for absorbing the new batch of fresh graduates and school leavers.
Commenting on the latest unemployment figures, the Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, said that the labour market stayed robust.
Last month, the Labour Department received 64 976 vacancies from the private sector, up a hefty 54.3% over the same period last year.
However, he cautioned that there was no room for complacency given the uncertainties in Hong Kong's external economic environment and the local skills mismatch problem.
"The Government will keep up its efforts to enhance the skills and qualities of our workers in face of a knowledge-based economy. To this end, the Employees Retraining Board is re-positioning itself to play a more strategic role in equipping our workforce through training and retraining," he said.
Further Information
The unemployment and underemployment statistics were compiled from the findings of the continuous General Household Survey.
The survey for February - April 2008 covered a sample of some 24 000 households or 73 000 persons, selected in accordance with a scientifically designed sampling scheme to represent the population of Hong Kong.
Data on labour force characteristics were obtained from the survey by interviewing each member aged 15 or over in the sampled households.
In the survey, the definitions used in measuring unemployment and underemployment follow closely those recommended by the International Labour Organisation.
Detailed analysis of labour force characteristics is given in the Quarterly Report on General Household Survey which is published four times a year. The current issue of the report covering the quarter October - December 2007 is now available and the next issue covering the quarter January - March 2008 will be available by end May 2008. Users can download this publication free of charge at the website of the Census and Statistics Department (C&SD) (www.censtatd.gov.hk/products_and_services/products/publications/index.jsp).
Print version of the current issue of this publication is available for sale at HK$56 per issue. Purchase can be done in person at the Publications Unit of the C&SD (Address: 19/F Wanchai Tower, 12 Harbour Road, Wan Chai; Tel.: 2582 3025) or through mail order by returning a completed order form which can be downloaded from the C&SD's website (www.censtatd.gov.hk/products_and_services/other_services/provision_of_stat/mail_ordering_of_publications/index.jsp). Print version of this publication is also available for sale online at the Government Bookstore of the Information Services Department (www.bookstore.gov.hk).
Enquiries for more detailed labour force statistics for January - March 2008 can be directed to the General Household Survey Section (2), Census and Statistics Department (Tel.: 2887 5508; Fax: 2508 1501; E-mail: ghs@censtatd.gov.hk).
Ends/Monday, May 19, 2008
Issued at HKT 16:15
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