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Hong Kong's unemployment rate dropped slightly, from 5.0 percent in April-June to 4.9 percent in May-July, with its underemployment rate too falling 0.1 percent to 2.6 percent.

Figures released by the Census and Statistics Department yesterday showed that the jobless rate fell mainly in the foundation and superstructure construction, sanitary services and wholesale trade sectors.

The underemployment rate fell in the decoration and maintenance, manufacturing and education services sectors.

About 25,000 more people got jobs in the last three months, taking the total employment to an all-time high of 3,452,500. The labor force too rose to a new high of 3,639,500 with an increase of about 32,900.

But the actual number of jobless people increased by about 8,000 to 187,000. The number of underemployed, though, fell by about 3,000 to 93,000.

A government spokesman said total employment surged along with continued economic expansion. The total labor force rose because of the entry of fresh graduates and school-leavers into the job market, creating a seasonal rise in the number of jobless.

After discounting the seasonal factor, the adjusted unemployment rate edged down to 4.9 percent in May-July, back to the March-May level and the lowest in nearly five years.

The labor market's improvement will continue to hinge on the overall economic performance, especially the rate at which new jobs are created vis-a-vis the increase in the labor force.

(China Daily HK Edition August 18, 2006)