Hong Kong’s seasonally adjusted unemployment rate jumped to 6.4% in the August - October 2020 period from 3.1% during the same period last year. When compared to the July – September 2020 period, the unemployment rate remained steady, according to the latest labour force statistics by the Census and Statistics Department.

Secretary for Labour and Welfare, Law Chi-kwong said, "Labour market conditions remained difficult, but showed further signs of stabilisation as the local epidemic situation stayed contained during that period.”

The underemployment rate remained at 3.8%, same as the previous period, but up from the 1.2% recorded during the same period last year.

Comparing August - October 2020 with July - September 2020, movements in the unemployment rate (not seasonally adjusted) in different industry sectors varied. A relatively notable decrease was observed in the retail, accommodation and food services sector, while an increase was mainly seen in the transportation sector. As to the underemployment rate, a decrease was mainly seen in the education sector, while an increase was mainly observed in the transportation sector.

The number of unemployed persons (not seasonally adjusted) decreased by around 2,000 from 259,800 in July - September 2020 to 257,800 in August - October 2020. Over the same period, the number of underemployed persons also decreased by around 1,100 from 149,100 to 148,000.

At the same time, total employment increased by around 2,900 from the July - September 2020 period to August - October 2020. The labour force in August - October 2020 was 3.88 million, about the same as that in July - September 2020. Total employment saw a slightly narrowed decline of 5.6% on a year-on-year comparison, and turned to a marginal increase of 0.1% over the preceding three-month period.

"Analysed by sector, the unemployment rate of the consumption- and tourism-related sectors (viz. retail, accommodation and food services sectors) combined declined by 0.5% from July - September 2020 to 11.2% in August - October 2020,” Chi-kwong said. “Among these sectors, the unemployment rate for food and beverage service activities eased to 14.8%. On the other hand, the unemployment rate of the transportation sector surged by 0.6% to 6.2%, the highest in close to 17 years. The unemployment rates in other sectors showed diverse movements."

Looking ahead, Chi-kwong said, "While the overall economic situation saw some improvement in recent months, hiring sentiments among employers would probably remain cautious, especially when the economic outlook is still clouded by the evolving pandemic situation. The labour market will remain under pressure in the near term. The government has already rolled out relief measures of unprecedented scale, including a host of measures to create and stabilise employment. The government will continue to monitor the situation closely."