Unemployment rate in Hong Kong is expected to rise in the near future.

According to the quarterly Hong Kong Macroeconomic Forecast released by the APEC Study Center of the University of Hong Kong, the provisional seasonally adjusted unemployment rate in Hong Kong averaged at 3.2% in the three months ending in August 2008.

Dr Alan Siu, Director of the APEC Study Center, says that the unemployment rate is expected to go up to 3.8% in the current, fourth quarter of 2008 from the estimated 3.3% in the last quarter. “Economic slowdown in the current quarter will bring up the unemployment level. So, for 2008 as a whole, unemployment rate is expected to be 3.4% on average.” As for the nominal wage, a broad-based increase of 3.9% in the second quarter was recorded.

Dr Siu comments that as the impact of the recent credit crisis will be unfolded in the months to come, economic slowdown will continue and the trend of a rising unemployment rate is expected to continue not only in the fourth quarter this year, but also in the first half of 2009.