The number of Hongkongers without jobs fell to about 166,400 last month, a 12-month low, but with the labour force growing the unemployment rate was unchanged at 4.9 per cent, according to government data.
Economists had expected the jobless rate to fall to 4.8 per cent amid signs that some businesses are taking on more staff as the economy recovers from the global financial crisis.
The underemployment rate fell from 2.3 per cent to 2.2 per cent as the number of people unable to find more than 35 hours of work a week fell by some 3,900. The improvements mostly involved construction and social work jobs.
Just over 3.5 million people were employed last month, about 8,600 more than in December. Jobs were created in several sectors - information and communications, accommodation services and the professional and business services sectors. Unemployment worsened in the arts, entertainment and recreation, finance and wholesale sectors.
The unemployment rate is a lagging economic indicator, meaning it has yet to reflect the impact of changes in the economic cycle. But it is keenly followed as a barometer of economic health because when people find jobs or feel their jobs are secure they are more likely to spend, creating demand for goods and services.
The jobless rate stayed above 5 per cent for much of last year. The city's so-called natural rate of unemployment is estimated to be 4 per cent; this represents the proportion of the workforce between jobs at any one time when the economy is operating at full capacity.
