Unemployment rate remains low
Updated: 2011-07-20 07:11
By Emma An(HK Edition)
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A man leaves Citibank Tower in Central district. Hong Kong's jobless rate remained unchanged at 3.5 percent in the three months ended June with total employment up by 10,100. Frederic J. Brown / AFP |
New minimum wage law makes no impact on labor figures
The city's jobless rate remained unchanged at 3.5 percent in the three months to June from the March-May period as new jobs helped to absorb most of the additional workforce, the Census and Statistics Department said on its website Tuesday.
The underemployment rate inched down to 1.8 percent from 1.9 percent over the same period.
In the three months through June, Hong Kong's labor force expanded by 12,100, whereas the job market absorbed most of the increase, with total employment up by 10,100.
Around 136,800 people are jobless, up 1,900 from the previous reporting period.
Companies are still hiring despite the cost impact of the newly enacted minimum wage,
"Total employment further increased notably by about 10,100 to a new record high of 3,610,600 in April-June 2011," Secretary for Labour and Welfare Matthew Cheung said after the release of the latest figures.
The city has maintained a robust pace of job creation since early last year. Fears of job losses triggered by the new minimum wage legislation haven't quite materialized yet.
"Since April 2010, the number of new private sector vacancies recorded by the Labour Department has stayed at a high level of about 3,000 per working day on average.This level has been maintained in July so far," said Cheung.
However, looking ahead, Cheung offered a note of caution. The labor supply is set to grow markedly as fresh graduates and school leavers enter the workforce in the coming months.
"In the next few months, the labor supply will continue to be affected by the entry of a new batch of fresh graduates and school leavers and also job-seekers induced by the implementation of the statutory minimum wage. The extent to which these newcomers will be absorbed into employment will hinge on the number of new jobs created against the background of a vibrant economy," said Cheung.
Analysts were not upbeat.
"Domestic demand will remain strong," acknowledged Paul Tang, chief economist at Bank of East Asia. But the growth for exports will almost certainly be much weaker, dampening employers' enthusiasm for further hiring, Tang noted.
Kevin Lai, an analyst at Daiwa Capital Markets, also hinted that the good times will end. Rising cost pressures will deter companies from hiring, while an expected economic slowdown will have a bearing on the figures. He expected the jobless rate to reach 4 percent by the end of this year.
Hong Kong's GDP grew by a better-than-expected 7.2 percent in the first quarter of this year from a year ago, helped by strong exports and free-spending tourists from the mainland. But the economy may be losing steam, with recent PMI numbers underscoring lackluster growth in new orders received by Hong Kong companies.
China Daily
(HK Edition 07/20/2011 page2)