Hong Kong Unemployment Rate Rises to 3.2% in December-February

Hong Kong's economy showed signs of growth in 2024, with a 2.4% increase in GDP for the fourth quarter, marking an improvement from 1.9% in the previous quarter, and an overall annual growth of 2.5%. However, the unemployment rate rose slightly to 3.2% from 3.1% in the prior three-month period, reflecting a drop in total employment by 7,100 and a decrease in the labor force. The increase in unemployment, alongside stable underemployment rates, indicates potential challenges in the labor market, particularly influenced by uncertainties from U.S. trade policies. While sectors like transportation and communications saw significant growth, the import/export and retail sectors contracted, highlighting a mixed economic landscape. Secretary for Labour and Welfare Chris Sun expressed optimism about economic expansion but acknowledged risks to some businesses due to external factors. Overall, while some sectors thrive, the labor market faces pressures that could impact future stability.