Hong Kong's unemployment rate has remained steady at 3.2% in the first quarter of 2025, according to the latest report from the Census and Statistics Department (C&SD). This figure has not changed since December 2024, despite fluctuations in various sectors.
Total employment in the region has seen a decline, dropping by 16,800 to 3,692,700 from December 2024 to February 2025. Meanwhile, the labour force also decreased by 5,800, bringing the total down to 3,815,500. The underemployment rate, however, has remained unchanged at 1.1% during this period.
The increase in unemployment has been notable, with the number of unemployed individuals rising from 111,700 to 122,800, reflecting a concerning trend in the job market. Underemployment also saw a slight increase, moving from 40,700 to 42,700 individuals.
Chris Sun, the Secretary for Labour and Welfare, commented on the situation, stating, "The increasingly uncertain external environment due to escalated trade conflicts may weigh on hiring sentiment in some sectors." He also expressed optimism, noting that the sustained growth of the Mainland economy, along with supportive policies from the Hong Kong Special Administrative Region Government, is expected to bolster labour demand.
The report highlights that while the overall unemployment rate has remained stable, the situation varies significantly across different industry sectors. Notably, the information and communications sector experienced the steepest rise in unemployment, increasing by 0.5%. Additionally, ten other sectors, including construction, retail, and financing, recorded a 0.4% increase in their unemployment rates.
In contrast, only four of the 38 sectors measured reported a decrease in unemployment rates, with the insurance and transportation sectors showing slight improvements.
Despite the overall stability in the unemployment rate, the rise in the number of unemployed individuals by approximately 11,100 underscores the challenges facing the job market. The total employment figure has now fallen below 3.7 million, raising concerns among policymakers and the public alike.
Furthermore, the underemployment rate's stability at 1.1% suggests that while jobs may be available, many workers are not fully utilized in their roles. The number of underemployed individuals has also increased by about 2,000, which indicates that more people are working fewer hours than they would prefer.
The C&SD's report further elaborates on the varied movements in underemployment rates across different sectors, noting that while there were fluctuations, they were generally not significant.
Hong Kong's method of measuring unemployment is based on a moving three-month average, which takes seasonal influences into account. Prior to this quarter, the seasonally adjusted unemployment rate had been at 3.1% since August 2024, before rising to 3.2% in the December 2024 to February 2025 period.
As the government continues to monitor these trends, there are calls for more robust measures to stimulate job creation and support workers affected by the ongoing trade conflicts and economic uncertainties. The need for a proactive approach in addressing these challenges is becoming increasingly apparent as more sectors report rising unemployment.
In conclusion, while the overall unemployment rate in Hong Kong remains unchanged at 3.2%, the underlying data reveals a more complex picture of the labour market, with significant increases in unemployment in key sectors. Policymakers are urged to take action to mitigate these impacts and support both job seekers and the economy.
