The unemployment rate in Hong Kong dropped to 3.2% in May – July 2008, the lowest level since early 1998.

According to the latest labour force statistics released by the Census and Statistics Department, the unemployment rate has declined from 3.3% in April – June 2008. Comparing May – July with April – June 2008, decreases in unemployment rate were mainly in construction, transport and import / export trades.

On the other hand, the underemployment rate has remained stable at 1.9% in both periods. Decreases were mainly in decoration and maintenance, welfare and community services, and sanitary services, offsetting the increases in foundation and superstructure construction, and amusement and recreational services.

The statistics show that the total employment increased by 1,400 to 3,534,200 in May – July 2008. The labour force has increased by 4,500 to 3,658,800. The number of unemployed persons increased by 3,100 to 124,600, and the number of underemployed persons increased by 2,100 to 69,900.

The government comments that the total labour force increased because of the entry of fresh graduates and school leavers into the labour market. The satisfactory absorption of these new comers into the labour market as well as the increased job opportunities in the construction sector have adjusted the unemployment rate.

The employment situation in the near future will depend on the job opportunities in the labour market especially with the uncertainties in the external economic environment in the remainder of 2008.