Unemployment rate dips to 3.2%

As labour force swells.

According to a release, the seasonally adjusted unemployment rate stood at 3.2% in the October-December quarter, a dip from 3.3% for the September-November period, the Census & Statistics Department announced today.

The underemployment rate remained unchanged at 1.4%.

Secretary for Labour & Welfare Matthew Cheung said the labour market remained tight in the last quarter, while total employment climbed to a new record high of 3,760,400 amid the festive boost to labour demand towards the year-end.

The jobless number declined to 118,400.

"The labour market stayed firm throughout 2013. Total employment expanded further and the unemployment rate remained at low levels, signifying a year of full employment," Mr Cheung added.

For 2013 as a whole, both the labour force and total employment sustained 2.4% expansion. As a result, the annual unemployment rate held steady at 3.3% in 2013. About 83,200 jobs were added in 2013 over 2012.

"Last year, the Labour Department recorded 1,216,735 private-sector vacancies, an all-time high figure, and up by 6.3% over 2012. The Labour Department will keep up its efforts in providing comprehensive employment support to job-seekers and enhance its employment service in relatively remote districts," Mr Cheung said.

He expects vibrant business activity in the run-up to the Lunar New Year to buoy labour demand. While the jobless rate is expected to remain low, he said the Government is monitoring the external economic environment and its potential impact on the local labour market.

Total employment increased by about 17,700, from 3,742,700 in September-November, to 3,760,400 in October-December. Over the same period, the labour force also increased, by about 8,900, from 3,869,900 to 3,878,800.

The number of unemployed (not seasonally adjusted) fell by about 8,800, from 127,200 in September-November to 118,400 in October-December. The number of underemployed in October-December was 55,500, about the same as 55,300 in September-November.

Most sectors saw decreases in the unemployment rate, including insurance and retail sectors.

Increases in the underemployment rate were mainly seen in the warehousing and transportation support activities and education sector. Decreases were seen in transportation, and food and beverage service sectors.