A Quick Synposis of Hong Kong’s Unemployment Rate

 

The unemployment rate is a major economic indicator which directly reflects the employment situation of Hong Kong residents and is closely related to our daily life. Simply speaking, unemployment rate refers to the proportion of "unemployed population" in the total "employed population and unemployed population" (i.e. the labour force).

The current (February – April 2025) seasonally adjusted unemployment rate was 3.4%. Let’s explore some phenomena related to the unemployment rate and analyse the underlying economic climate and socio-economic characteristics.

 

Can we have “zero” unemployment rate?

“Zero” unemployment rate may seem possible in theory, but it is extremely unlikely in reality. Even in a stable and healthy economy, there are always brief spells of unemployment as people change jobs or look for new positions, reflecting the mobility of the labour market. In addition, with the evolving industrial structure and continuous technological development, there may be some mismatches between the skills of job seekers and job requirements. This is also one of the inevitable causes of unemployment.

 

Are young people more likely to be unemployed?

In 2024, the overall unemployment rate of Hong Kong residents was 3.0%, while the unemployment rate for young people (aged 15 to 29) in Hong Kong reached 6.2%, higher than that of other age groups. The International Labour Organisation points out that the phenomenon of higher unemployment rates among young people is common around the world. One of the reasons is that young people generally have less work experience and face greater challenges when seeking jobs. In addition, young job seekers may have less financial burden, making them willing to wait longer to find their ideal jobs.

 

The higher the educational attainment, the lower the unemployment rate?

Not necessarily.

In 2024, the unemployment rates for the lower (lower secondary and below), medium (upper secondary) and higher (post-secondary) educational attainment groups were roughly equal, at 3.0%, 2.9% and 3.0% respectively. This reflects that Hong Kong, as a knowledge-based economy, has a high demand for highly educated talents on the one hand. At the same time, the labour market for jobs with lower educational requirements is also tight.

 

Are there differences in unemployment rates across industries?

In 2024, the Hong Kong economy recovered steadily after the epidemic in general, with the unemployment rates in most industry sectors remaining at low levels and the overall rate at 3.0%. Affected by different socio-economic factors, the unemployment rates of individual industries varied.

The public administration, social and personal services sector; and the financing, insurance, real estate, professional and business services sector generally had stronger manpower demands and their unemployment rates were relatively low, at 1.3% and 2.6% respectively.

The unemployment rates in the construction sector and the retail, accommodation and food services sector were slightly higher than the overall rate, both at 4.2%. The construction sector might be affected by the slowdown in works progress or reduction in new projects, weighing on the demand for construction workers. As for the retail, accommodation and food services sector, their employment situation might be affected to a certain extent by the challenges brought by changes in the consumption patterns of residents and visitors in recent years.

Industry in the figure refers to the industry in which an unemployed person previously worked.

For more information about the monthly released employment and unemployment statistics, please visit the subject page on "Labour Force, Employment and Unemployment".

 

YUEN Yiu-po, Alfred
Statistician
3 June 2025