Hong Kong unemployment holds at 3.7% as fresh graduates flood job market
SCMP · 1 SOURCESabout 2 hours ago2 MIN
Summary
Hong Kong's unemployment rate has held steady at 3.7 percent since the start of the year, official data shows, even as the Labour Secretary cautioned that mounting pressure looms from new graduates entering the job market. The underemployment rate ticked upward to 1.7 percent, while the government has upgraded its full-year economic growth forecast to between 3.5 percent and 4.5 percent for 2026.
Key Points
- The seasonally adjusted unemployment rate stood at 3.7 percent for the May-to-July period, unchanged from a rolling three-month basis since the start of 2026 .
- Underemployment rose to 1.7 percent, up from 1.6 percent in the April-to-June period, with approximately 145,700 people unemployed, up from 139,700 .
- Labour Secretary Chris Sun Yuk-han said the expansion of the local economy should support overall labour market conditions, though fresh graduates may pose pressure on the unemployment rate .
- The foundation and superstructure sector saw pronounced declines in unemployment, while the retail and transport industries experienced worsening joblessness .
- The government raised its full-year economic growth forecast to between 3.5 percent and 4.5 percent for 2026, citing strong export performance and tourist arrivals .
Why It Matters
The flat unemployment rate masks underlying vulnerabilities as nearly 6,000 more people joined the unemployed ranks compared to the previous quarter, suggesting the job market is softening even as economic growth accelerates. With external headwinds potentially dampening corporate hiring sentiment, Hong Kong's labour market faces a delicate balance between robust growth and rising joblessness among vulnerable groups like fresh graduates and school leavers .
The flat unemployment rate masks underlying vulnerabilities as nearly 6,000 more people joined the unemployed ranks compared to the previous quarter, suggesting the job market is softening even as economic growth accelerates. With external headwinds potentially dampening corporate hiring sentiment, Hong Kong's labour market faces a delicate balance between robust growth and rising joblessness among vulnerable groups like fresh graduates and school leavers .