HONG KONG: The unemployment rate for young people aged 15 to 24 has grown, even as the overall job market in Hong Kong remains stable, government statistics showed yesterday.

The overall unemployment rate for May to July remained at 5.4 percent, while the underemployment rate increased slightly from 2.3 percent to 2.4 percent over the same period.

However, the unemployment rate among people aged 15 to 19 from April to June jumped to 24.3 percent from 21.1 percent in March to May, and 16.6 percent in the first quarter.

The unemployment rate for people between the ages of 20 and 24 in April to June also climbed to 10.6 percent from 10 percent in three months earlier and 9.5 percent in the first quarter.

The Labour Department said there were 45,433 vacancies in the private sector in July, a decline of 29 percent from the same period last year. The number of vacancies for people with secondary five or below and without working experience stood at 18,200, also down about 30 percent from the same period last year.

Gary Tang Leung-shun, supervisor of the Hong Kong Federation of Youth Group, which will organize a job fair in Tsuen Wan today, said the increase in youth unemployment rate is expected.

"Companies have tight budgets nowadays. They don't want to hire someone who has no working experience," Tang said.

But Tang expected conditions to improve in the coming months as more people participate in job training programs.

Secretary for Labour and Welfare Matthew Cheung said more than 1,100 people have applied for the Youth Pre-employment Training Program and the Youth Work Experience and Training Scheme, which will accept applications throughout the year.

About 4,400 university graduates have also registered for the internship program since its implementation on August 1, he said.

The city's overall unemployment rate in May to July showed signs of stabilization. A drop of 0.7 percent in the rate for finance and arts, and 0.6 percent for the entertainment and recreation sectors were recorded.

The unemployment rate for the decoration and maintenance sectors stood at 14.2 percent, compared with 21.6 percent from February to April.

Cheung said the job market still faces pressure.

"Although the labor market showed signs of stabilization in the second quarter in tandem with the improvements on both domestic and external factors, the unemployment rate will continue to face upward pressure as business sentiments remain cautious and employers stay generally conservative in hiring new hands," he said.

Increases in unemployment are mainly recorded in the education, insurance, and repair, laundry, domestic and miscellaneous personal services sectors.

City University economic and finance associate professor Charles Li said the unemployment condition is still uncertain and may improve next year.

(HK Edition 08/19/2009 page1)