Unemployment falls to four-year low in Hong Kong
Hong Kong’s unemployment fell to 2.9% between April and June this year, making the first time this has fallen below the 3% mark since 2019.
According to the Census and Statistics Department, the jobless rate fell 0.1% from March to May this year, which represents a sustained economic recovery and a return to full employment. The current rate of underemployment stands at 1.1%, down 0.1%.
Acting Labour and Welfare Secretary, Ho Kai-ming, has used these statistics to predict an improving job market with a continued bounce back in the economy. “The labour market should improve further in the coming months as the economic recovery gathers further strength,” he said.
While there were 113,600 people out of work, total employment increased by 15,400, an increase from approximately 3.78 million to 3.8 million from March to May, seeing a downward trend in unemployment, reported South China Morning Post.
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Economist Simon Lee Siu-po, an honorary fellow at the Asia-Pacific Institute of Business at Chinese University, however, raised a challenge facing Hong Kong’s economic recovery: brain drain of talented employees emigrating from the city. “This signals a lot of challenges for Hong Kong as it grapples with insufficient talent and lack of skilled workers. Employers will be forced to increase wages to attract people, pushing up their operating costs and, as a result, impeding economic growth.” he predicted.