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Hong Kong's unemployment rate hits 43-month low
2005-06-16 08:52:29 THE ASSOCIATED PRESS

HONG KONG, Jun 16 (AP) -- Hong Kong's jobless rate in the March-to-May period fell to a near four-year low as the city's economy continued to grow, the government said Thursday.

Economists believe the underlying trend will remain positive as the expansion of sectors such as finance and tourism will continue to drive the city's job gains in coming months.

The unemployment rate for the three months to the end of May was 5.7 percent, compared with 5.9 percent for the three months ended April, the Census and Statistics Department said. The figure was a 43-month low.

"In tandem with continued revival in the local economy, total employment rose to a record high," the government noted.

Total employment grew 9,400 to 3,359,000 in March to May from the three months ended April.

"The March-to-May unemployment report is very encouraging, given that the number of unemployed persons decreased even though total labor force grew," said Standard Chartered economist Tai Hui.

The labor force expanded by 3,800 to 3,563,000, while the total number of unemployed fell 4,600 to 205,000 in the three months ended May from February-to-April period.

The unemployment situation eased most significantly in sectors like construction, manufacturing and business services, the government said.

In coming months, economists expect the unemployment rate to keep falling as the economy continues to expand.

"Although the economy may slow down a bit, we are still talking about a full year growth rate of around 5 percent, which is still very decent. There is no reason to be pessimistic about the prospect of further job creation," said Dai Daohua, economist at Bank of China (Hong Kong).

The opening of a Disneyland amusement park in Hong Kong in September could boost job creation by as many as 30,000 jobs, Dai said.

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