HONG KONG: As the local economy and global business environment have further improved, the jobless rate has fallen for the third consecutive month to reach a nine-month low, according to government figures released yesterday.

The seasonally adjusted provisional unemployment rate fell from 5.2 percent in the August to October period to 5.1 percent in the September to November period.

The median estimate of eight economists surveyed by Bloomberg News was for the rate to stay at 5.2 percent.

Total employment rose from 3,488,300 to 3,497,600, while the labor force fell from 3,678,700 to 3,678,600.

"The trend is positive; the labor market is beginning to recover," said Secretary for Labour & Welfare Matthew Cheung.

Decreases in the unemployment rate were mainly seen in the wholesale; retail, accommodation and food services; and decoration and maintenance sectors.

The unemployment rate of the construction sector has dropped for seven consecutive months to 7.6 percent.

"The latest figures show the government efforts in infrastructure and other projects are paying off," said Cheung.

"Looking ahead, as business activities are expected to pick up around Christmas and the New Year, labor demand is likely to increase further during the festive season, which should in turn ease the unemployment rate in the near term."

He noted that the continued recovery of the labor market would hinge on the overall business performance and, in particular, the capacity and pace of job creation in the corporate sector.

"With the commencement of construction of the Hong Kong-Zhuhai-Macao Bridge and the expansion of Disneyland, it is expected that the employment situation of the construction sector will improve continuously. In addition, the measure to allow non-Guangdong residents ordinarily residing in Shenzhen to apply for Individual Visit endorsements in Shenzhen to visit Hong Kong will also help boost consumption and the local economy," Cheung predicted.

However, economists remain cautious. "The business environment is gradually improving," said Joanne Yim, chief economist at Hang Seng Bank, cautiously adding, "But the momentum for job creation may be weak, as the pace of economic recovery is tepid."

Though unemployment has eased, underemployment is worsening. The underemployed (those whose current job and/or salary levels are below those of their qualifications or previous experience) grew from 88,900 to 90,200, as the underemployment rate edged up from 2.4 percent to 2.5 percent.

(HK Edition 12/18/2009 page3)