H.K. jobless rate hits record-high 7.4% for March-May

Asian Economic News, June 24, 2002

HONG KONG, June 17 Kyodo

Hong Kong's jobless rate and the number of unemployed both hit new record highs for March-May, the government said Monday.

The unemployment rate climbed up to 7.4% for March-May from 7.1% in February-April, with 253,000 people out of work, it said.

Hong Kong's jobless rate has been surging to record highs since the November-January period.

The territory's latest underemployment rate also edged up, to 3.1% from the earlier 3.0%. Hong Kong considers a person underemployed if he or she works less than 35 hours a week.

''Further rise in the unemployment rate was mainly due to a continued contraction in total employment, consequential to the distinct setback in the overall economy in the recent quarters,'' the government said in a statement.

The jobless situation is likely to stay high in the near term as a new batch of fresh school graduates will add to the labor supply and overall labor demand will remain subdued, it said.

Meanwhile, Chief Executive Tung Chee-hwa told a luncheon organized by the Hong Kong General Chamber of Commerce on Monday that high unemployment, among other negative economic consequences, will remain for some time as the territory's economy is undergoing ''difficult restructuring'' that will last for years.

Tung said that there are no easy solutions for the unemployed and those about to lose their jobs.

Comparing the March-May period with February-April, the jobless rate rose across many major economic sectors, including construction, retail trade, restaurants, import-export trading and communications, according to government statistics.