In the recent reporting period from April to June, Hong Kong has maintained its unemployment rate at a notably low level of 3%, as confirmed by the Census and Statistics Department. This stable rate translates to approximately 114,700 individuals currently without work during this three-month span. Equally significant is the underemployment rate, which has held steady at 1.2%, signaling consistent patterns in workforce engagement during the same quarter.
The total employment figures have shown a modest increase, climbing by about 6,400 positions to reach a total workforce of 3.7 million, with the labor force itself expanding by around 4,900 to a total of 3.8 million. Despite these encouraging employment statistics, the private sector has experienced a shift, with an average of 75,512 job openings reported monthly, exhibiting a 6.7% decline compared to the previous March-to-May period.
This contraction in job openings may reflect broader economic adjustments within the territory. Labor and Welfare Secretary Chris Sun provided insight into the prevailing labor market conditions, stating, "The labor market should stay tight in the near term alongside the continued economic growth." This perspective underscores an optimistic outlook amidst the fluctuating economic landscape. Examining the broader economic context, Hong Kong's real Gross Domestic Product (GDP) achieved a moderate growth rate of 2.7% in the first quarter of 2024, relative to the same quarter a year prior.
However, potential challenges loom, particularly with decreased domestic demand. The University of Hong Kong's HK Macroeconomic Forecast suggests that economic expansion might slow to around 2% in the second quarter if current estimates hold true. This slowdown may indicate a transitional phase for the local economy as it adapts to new consumer behaviors and external economic pressures. Moreover, forecasts predict that Hong Kong's private consumption is likely to witness its first downturn since the pandemic in the upcoming third quarter.
Retail sales in April and May have already shown a concerning trend, with reports indicating substantial double-digit percentage declines. As these dynamics unfold, the landscape of employment in Hong Kong remains closely tied to the region's economic health and consumer confidence. Stakeholders and industry experts will need to keep a vigilant eye on these developments to understand their implications for the workforce and broader market trends moving forward..