Unemployment can be defined as the percentage of a given labor force which is without work but is available for and actively seeking employment. The unemployment rate of every country and territory is different. This is because a variety of economic and other factors play a role in determining the unemployment rate. Therefore, unemployment rates are usually in a state of flux. Hong Kong’s unemployment rate changes, just as is true of those anywhere else in the world, reflect its economic and business well-being during a particular point in time.
Unemployment Rate History in Hong Kong
The current unemployment rate in Hong Kong is 4.2%. This figure is slightly higher than those of recent years. During most of the past decade, the unemployment rate of Hong Kong has been between 3% and 4%. However, these figures are nowhere near Hong Kong’s highest unemployment rate during the past 40 years. In June 2003, Hong Kong’s unemployment rate was at 8.5%. The lowest recorded unemployment rate in Hong Kong’s recent history is just 1%. This was the unemployment rate in June 1989.
Interestingly, prior to the beginning of the 2010s, Hong Kong’s unemployment rate was rather unstable. Steep rises and falls in this rate were frequent. However, the growth and development of the economy of Hong Kong has helped to moderate these fluctuations and keep the unemployment rate relatively low.
Expected Future Changes to Hong Kong’s Unemployment Rate
Over the next two years, Hong Kong’s unemployment rate is expected to initially climb before beginning to decline in mid-2021. By the midpoint of 2020, the unemployment rate of Hong Kong has been estimated by experts to be around 4.5%. This figure is expected to continue increasing. By mid-2021, the unemployment rate is expected to peak at 5.5% and remain just below that level for the rest of the year. The annual unemployment rate in Hong Kong for the year 2021 is anticipated to be around 5.3%. However, after the turn of the year, the unemployment rate is expected to gradually reduce. At the end of 2022, the annual unemployment rate for that year is expected to be approximately 4.2%.
Recent Changes to Hong Kong’s Unemployment Rate
Over the most recent three-month period studied, the unemployment rate of Hong Kong increased from 3.7% to 4.2%. This was the highest unemployment rate over any three-month period in Hong Kong since October 2010. During this most recent period, the number of unemployed in Hong Kong increased to 162,200. There are currently 82,800 underemployed people there.
Similarly, the number of employed people in Hong Kong has also declined accordingly. The number of employed people in Hong Kong declined by just under 49,000 people to around 3.72 million. The labor force of Hong Kong also decreased by around 20,800. It now stands at approximately 3.9 million.
Recent unemployment increases in Hong Kong have been particularly notable in sectors related to tourism and consumption. The combined unemployment rate of both sectors combined is now 6.8%. This figure is the highest in more than a decade. The unemployment increase in Hong Kong’s food and beverage sector was particularly worrisome. This sector saw the unemployment rate increase to 8.6%. The current coronavirus crisis is also expected to intensify the pressure on Hong Kong’s labor market.
If you would like to help alleviate Hong Kong’s unemployment issues by moving there to work, we at Paul Hype Page & Co are able to be of assistance to you. We will enable you to acquire a valid visa which will allow you to live and work there. We will also contact any government authorities for you if you require us to do so.