Unemployment rate in Hong Kong continued to fall to 3.3 percent between February and April from 3.4 percent between January and March.

The figure has hit a record low since January-March 1998.

The employment figure surged 4,500 to 3,539,000 over the reported period, while the labor force rose by 6,500 to 3,660,000.

The decrease in unemployment rate was mainly in the amusement and recreational services, restaurants and hotels, and sanitary services sectors, according to the government.

Falls in underemployment rate were also seen in foundation and superstructure construction sectors.

"The labor market stayed robust...but there was no room for complacency given the uncertainties in Hong Kong's external economic environment and the local skills mismatch problem," said Matthew Cheung Kin-chung, secretary for Labour and Welfare.

President of Hong Kong People Management Association Felix Yip said the 0.1 percent drop in unemployment rate is rather insignificant.

The employers are still facing difficulties in recruitment especially in amusement sector due to keen competition, the president said.

He also added that the proposed salary hike for civil servants raises the expected salary of job-seekers.

Last week an advisory body on civil servants' salary and service conditions proposed a 3.9 to 6.3 percent pay rise for them.

"There are cases where the job-seekers reject the offer or even don't go for job interview (because of the pays are far from their expectation)," Yip added.

The near-term employment outlook will depend on the influence brought by the moderation in global economic growth in the local economy, Cheung said.

"(This) in particular (hinges on) 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," he said.

Yip said the recent researches on the salary of fresh graduates conducted by some local tertiary institutions also exert pressure on recruitment because graduates may expect a higher salary.

Yet he added the situations may vary in different industries.

(HK Edition 05/20/2008 page2)