Jobless rate falls to lowest since '98

Hong Kong's unemployment rate dropped to a nine-and-a-half-year low of 3.6 percent in the September-November period, thanks to strong economic growth and robust domestic consumption.

The labor market was buoyant in the three months, with total employment rising by 13,400 to an all-time high of 3.51 million. The labor force dipped by 2,500, to 3.64 million, the Census & Statistics Department said.

The number of unemployed people fell by 15,900 to 127,700, the first time it's dipped below 130,000 since March-May 1998. The number of underemployed people fell by 2,000 to 80,200.

The Secretary for Labor and Welfare, Matthew Cheung Kin-chung, said the figures are encouraging.

He added that the government would keep up its efforts to help those who have difficulty entering the labor market, particularly those from remote districts like Tin Shui Wai and Tung Chung.

The jobless rate drop reflects a buoyant domestic economy, boosted by strong consumer spending and a recent boom in housing construction and property development, said Peng Chen, an economist with JPMorgan.

"Overall, Hong Kong's labor market has seen steady improvement since early 2004," he said.

In the short term, a further drop in the unemployment rate depends on the pace of job creation over the Christmas and New Year period, a government spokesperson said in a statement.

But long-term, the job market hinges on what happens in the US, economists said.

(China Daily 12/20/2007 page15)