Unemployment Hits Highest Rate Since Sars Crisis

Government data shows that almost 6 percent of Hong Kong's work force – or more than 230,000 people – were out of work at the end of May, the highest rate in more than 15 years.

The latest unemployment rate, 5.9 percent for the three months ended in May, is the highest in more than 15 years, and is up from April's reading of 5.2 percent.

The pace of increase has slowed down slightly after a one percentage point jump from 4.2 percent in March.

The underemployment rate also rose from 3.1 percent to 3.5 percent during the same period.

Joblessness was seen across almost all the major economic sectors.

The combined unemployment rate for the consumption- and tourism-related sectors rose to 10.6 percent – the highest since 2003 after the onslaught of severe acute respiratory syndrome. The underemployment rate in the sectors also increased to 6.3 percent, the highest on record.

The food and beverage sector also saw its unemployment rate rising to 14.8 percent while the underemployment rate stayed elevated at 8.2 percent.

The situation in the construction sector also worsened, with the unemployment rate rising to 10.8 percent and the underemployment rate to 8.2 percent.

But the government saw light at the end of the tunnel.

Labour Secretary Law Chi-kwong believes the pace of increase in the unemployment rate will start to ease although the labour market will still face pressure in the near term.

That's given the fact that the government has rolled out relief measures of what he called "unprecedented scale" to retain and create jobs.