Hong Kong's Jobless Rate Edges Down To 6.1 Percent

Hong Kong’s jobless rate edged down to 6.1 percent in the three months to July after rising for nine consecutive months, with the government crediting the temporary lull in coronavirus infections here, along with billions of dollars in handouts to struggling businesses.

The provisional figure was down slightly from a reading of 6.2 percent for the April to June period.

The government said the biggest improvements were seen in the information and communication sector, together with professional and business services, and education, as the economy added some 16,600 jobs.

However, with more people joining the labour force, the actual number of unemployed people rose by 1,800 to 242,500.

Consumption and tourism-related industries continued to struggle, with the jobless rate in the food-and-beverage sector at 14.6 percent.

Construction jobs continued to be shed – contributing to a 11.3 percent unemployment rate – the highest since the aftermath of the global financial crisis.

At the same time, underemployment declined from 3.7 percent to 3.5 percent, with improvements seen mainly in the retail, accommodation and food services sectors.

Secretary for Labour and Welfare, Dr Law Chi-kwong said, "The labour market remained austere in May-July 2020, but showed some improvement over April-June as the local epidemic situation was largely under control in May and June. The launch of the Employment Support Scheme has also provided support."

But he warned that the labour market will remain under "significant pressure" in the short term. "The recent surges in infected cases both worldwide and locally have further clouded Hong Kong's economic outlook for the rest of the year”, he said.

He said the government – which is working on a third round of relief measures – will continue to monitor the situation closely.