Hong Kong’s labor market demonstrated continued robustness late this year, as the seasonally adjusted unemployment rate slightly declined between the third and fourth quarters of 2025. Provisional data released by the Census and Statistics Department indicates the percentage of jobless fell from 3.9% in July–September 2025 to 3.8% in the rolling August–October period, signaling persistent economic stabilization. Meanwhile, the crucial underemployment rate remained steady at 1.6%, suggesting that those currently employed utilized their labor hours effectively.
This marginal softening in the unemployment figure was driven by noticeable improvements across several key industries. Sectors particularly benefiting from increased hiring activity included retail, accommodation, and food services—often seen as bellwethers for local consumption—alongside professional and business services (excluding lower-skilled roles like cleaning). The financing sector and infrastructure projects, such as foundation and superstructure construction, also reported more pronounced declines in their non-seasonally adjusted jobless rates.
While the headline unemployment rate improved year-over-year, the latest statistics reflect a subtle shift in the composition of the workforce. The total size of the labor force contracted slightly, dropping by approximately 7,800 individuals from 3,830,100 to 3,822,300 over the two measurement periods. This reduction coincided with a modest dip in total employment, which shrank by about 1,800 to 3,672,700. The combined effect suggests that some individuals may have temporarily withdrawn from seeking active employment, contributing to the unemployment calculation decrease.
The raw number of unemployed persons fell sharply, declining by around 6,000 to reach 149,600. Conversely, the number of underemployed individuals saw a slight increase, rising by roughly 800 to 60,800. This indicates that while widespread joblessness is receding, minor pockets of labor capacity remain unused, possibly in sectors undergoing structural change.
Sectoral Health and Future Confidence
The government administration commented that the sustained improvement in job figures, coupled with stable underemployment data, confirms the broader economy is on solid ground. This resilience is attributed to a combination of factors currently bolstering business operations throughout the territory.
Key Drivers Supporting Continued Employment Growth:
- Solid Economic Expansion: Robust growth figures provide businesses with confidence to hire and expand operational capacity.
- Improving Business Sentiment: Corporate optimism is translating into lower levels of hiring hesitation and reduced layoffs.
- Gradual Consumer Confidence Recovery: Increased spending by local consumers directly boosts demand in high-contact service sectors like retail and dining, accelerating employment gains there.
Looking forward, this positive trajectory is expected to continue supporting the labor market, although the administration acknowledges that key industries must still navigate adjustments linked to ongoing economic restructuring. For job seekers, the data suggests that opportunities are now more concentrated and accessible in service and professional fields, positioning the economy for slow, steady labor improvement into the next year.