Construction and retail sectors the worst hit in Hong Kong’s latest unemployment figures
Experts warn situation may not improve in the short term with infrastructure delays and an influx of fresh graduates to come
The construction and retail sectors are the worst hit by Hong Kong’s economic doldrums, as the latest unemployment rate remained at the highest level in two years.
The government said on Tuesday that the overall jobless figure stood at 3.4 per cent between February and April, unchanged from the reading of the three months between January and March. Before that, the unemployment rate had remained at 3.3 per cent for eight consecutive months.
This came after the city posted the worst quarterly economic growth figure in four years, which only expanded 0.8 per cent in the first quarter compared with a year earlier.
Economists warned the jobless rate – which had remained at a relatively low level – will climb further by the end of this year, through delays of the city’s large infrastructure projects and an expected influx of fresh graduates over the summer.
“The near-term employment outlook remains overshadowed by the strong external headwinds and slow-growing local economy,” said Secretary for Labour and Welfare Matthew Cheung Kin-chung, adding the weakening demand in trade, tourism and construction sectors “warrants particular concern”.
A stable local sector supported by the low unemployment rate was one of the major drivers of
economic growth in the past year, when both tourist figures and trade figures dwindled.