Almost 1 in 2 job seekers fail to find jobs in Hong Kong

Hong Kong’s unemployment rate remained unchanged at 3.2% for the second quarter despite the continuous battering taken by its weaker economy.

The total labor supply during the period rose by 7,300 while the number of newly employed persons stood at 4,300 leaving 3,000 unemployed or 41% of the number of job seekers in the second quarter. The additional 3,000 unemployed brought the city’s total unemployed to 128,500, said the government.

But the growing jobless group doesn't affect the state of full employment of the market, said Secretary for Labour and Welfare Matthew Cheung Kin-chung. "It is noteworthy that the recent private sector vacancy figures still demonstrate a generally positive hiring sentiment among employers," said Cheung.

"There are reasons to remain cautiously optimistic about the labor market's outlook," said the report.

While the report anticipates Hong Kong's unemployment rate to inch up, it will only be at a gradual pace, to 3.7% by year end. This compares with the average 3.4% jobless rate in Hong Kong last year.

Cheung indicated that sufficient new job creation to cater to the demand from the influx of fresh graduates and school leavers will decide the employment situation in the near term.

"Downside risks in the external environment continue to loom large amid the evolving Eurozone debt crisis, adding considerable uncertainties to the overall economic outlook in Hong Kong," said Cheung.