The August-October unemployment rate rose to 3.1 percent in the Hong Kong Special Administrative Region (HKSAR), according to the latest labor force statistics released on Monday by the Census and Statistics Department (C&SD).

Despite the city's seasonally adjusted unemployment rate remaining at 2.9 percent in the period from July-September, the strength of the city's employment sector is waning as over five-month-long protests, often violent, have ripped the city's economy. 

The underemployment rate also increased from one percent in the period from July-September 2019 to 1.2 in August-October 2019, the statistics showed.

Law Chi-kwong, the secretary of the SAR's Labour and Welfare Bureau, said, "The labor market eased further as economic conditions continued to worsen. Both the seasonally adjusted unemployment rate and the underemployment rate went up by 0.2 percentage points in August - October 2019, to 3.1 percent and 1.2 percent respectively. The year-on-year decline in total employment enlarged."

The increases in the unemployment rate and underemployment rate can mainly be attributed to the construction sector, according to the C&SD.

"The unemployment rates in most sectors increased compared with the preceding three-month period. The unemployment rate of the consumption- and tourism-related segment (retail, accommodation and food services sectors as a whole) rose further to five percent, the highest since the beginning of 2017. Within this segment, the unemployment rate for those working in food and beverage service activities went up to 6.1 percent, the highest in more than six years. The unemployment rate of the construction sector, particularly of those involved in decoration, repair and maintenance for buildings, deteriorated visibly," said Law.

Ongoing protests and unrest weakening job market's outlook 

The over five-month-long protests have hammered the SAR's key sectors and worsened the business environment, which will cause enterprises to experience operational difficulties. 

The HKSAR government confirmed on Friday its economy shrank by a seasonally adjusted 3.2 percent in July-September from the previous quarter, making the economy contract 1.3 percent in 2019.

Looking ahead, Law said, "The unemployment rate will be under increasing upward pressure as local social incidents involving intensifying violence continue to take a heavy toll on the economy. The government will monitor the developments closely."

He noted that the Labor Department canvasses vacancies for job-seekers with different educational background and working experience from employers in various industries; and organized large-scale job fairs in different locations as well as industry-based and district-based job fairs at its recruitment centers and job centers respectively to expedite the dissemination of employment information and help different job-seekers to secure employment.

(Infographics by Li Jingjie)