Hong Kong's seasonally adjusted unemployment rate rose to 7.2 percent in the December-February period, the highest since 2004, dragged by the coronavirus pandemic late last year and a pause in the tourism industry, according to the Hong Kong Special Administrative Region (HKSAR) government.

The latest figure was up from the 7 percent registered during the three-month period ending January.

Statistics show the number of unemployed rose by about 8,300 people to 261,600 in the December-February period. 

Law Chi-kwong, secretary for labor and welfare, said the labor market remained under pressure as unemployment in multiple sectors deteriorated, including import and export trade, postal and courier activities, education, and arts, entertainment and recreation.

The labor market will still face challenges in the near term as the epidemic has yet to be fully contained and inbound tourism remains frozen, Law said.

However, he said the situation stabilized in the later part of the three-month period alongside an improvement in the epidemic situation.

Unemployment rate in the consumption- and tourism-related sectors combined fell to 11.1 percent from 11.3 percent, with food and beverage service activities down from 14.7 percent to 14.1 percent in the previous three-month period.

Law also said that with the launch of the COVID-19 vaccination program, the threat of the pandemic will gradually diminish, which will help ease the pressure on the labor market later this year.

Hong Kong's retail sales fell 13.6 percent in January 2021 amid the fourth wave of COVID-19 infections. The business environment of the retail trade will still be difficult in the near term, the HKSAR government said in early March.