Here's something for the Hongkongers to cheer about. The city's
unemployment rate has plummeted through the 5-percent psychological
mark to a 57-month low of 4.9 percent.
This is the first time the jobless rate has dropped below 5
percent since mid-2001 - a level long held by the financial
officials as the psychological mark that can inspire a greater
sense of optimism if it can sustain for another quarter.
"It is a marked improvement from the previous quarter. It sounds
very good," Vice-President of Federation of Trade Unions (FTU)
Leung Fu-wah said.
"The government has every reason to spread a sense of optimism
within the society now that the unemployment rate has fallen below
5 percent. Financial Secretary Henry Tang once said this was a
point very difficult to break through," City University of Hong
Kong (CityU) political scientist James Sung added.
Sung said Hong Kong would have to hold the ground below 5
percent for at least another quarter or two to strengthen the sense
of optimism in the community.
Unemployment and underemployment rates for the previous
February-April quarter stood at 5.1 and 2.4 percent. However,
underemployment rate for the March-May quarter rose to 2.6 percent
though unemployment rate dropped to 4.9 percent.
Announcing the March-May figures yesterday, the government
attributed the drop to increased decoration and maintenance
activities in the construction industry, sanitary services and
communications sectors.
A spokesman said total employment increased by 11,200 people,
from 3,426,800 in the previous quarter to an all-time high of
3,438,000 in the March-May period. Over the same period, the
workforce expanded by 5,600 persons to 3,613,000 workers.
Meanwhile, the number of unemployed people dropped by 5,600 to
175,000 for the March-May quarter. There are 9,400 more
underemployed people, however, up from 85,600 to 95,000.
The spokesman said the overall labor demand continued to
increase in the period along with the sustained economic
recovery.
He cautioned that further improvement in the labor market
situation would bear on whether the continued economic pick-up
would create sufficient jobs for absorbing fresh graduates and
school leavers in the coming months.
The labour market yet remained buoyant, the spokesman said. In
May, the Labor Department recorded 40,801 private-sector vacancies,
14.3 percent higher than the same month last year.
Job fair for graduates
He said that the department would hold for the fresh university
graduates a two-day job fair at the City Hall on June 28 and 29
where 50 employers would offer 3,200 jobs in the aviation and
airport related services, information technology and
telecommunications sectors.
FTU's Leung agreed with the government's observation, saying it
had become easier for the university graduates to find a job this
year.
"It's been easier for the fresh graduates to get employment this
year. Those graduating in surveying or engineering are being
approached or hired by the companies. Although there may not be
sufficient construction projects here in Hong Kong, there are
plenty across the border," Leung said.
Leung said the community had not seen the jobless rate fall
below 5 percent for a long time, and was optimistic of further room
for the figure to drop further "because we can do more in sectors
like tourism, financial services, insurance, logistics, etc."
But he was pessimistic that the unskilled or low-skilled labor
would continue to lose out in the boom.
More quarters needed
CityU's Sung said Hong Kong should stay guarded for at least
another quarter or two for a firmer base to rejoice. "Economically,
one quarter would be too short to judge on a trend. We need at
least two or more consecutive quarters."
Sung, however, agreed that an unemployment rate lower than the
5-percent level was still a case for many to rejoice over.
"It would certainly be a relief for the government. The chief
executive would have a case to cite about in his October policy
address for employment has been his No 1 priority," Sung said.
Echoing the government's caution, he pointed out that the
statistics for the quarters ending September or October would be
subject to the stringent test of graduates and school leavers in
summer.
Despite the improvement in the latest quarter, he said Hong Kong
was wary about the problem.
"Unemployment remains serious in certain industries like
construction. There're the uncertainties of avian flu and SARS for
tourism. Competition from other ports in the Pearl River Delta has
diverted business from Hong Kong's terminals," he said.
"The government has said for years creative industry will be the
new economic growth point for Hong Kong. But we're still not very
clear about it," he said, adding it would be necessary to locate a
new growth point at the CE's Economic Summit.
(China Daily HK Edition June 20, 2006)