The latest unemployment statistics shared by the Secretary for Labour & Welfare, Mr Matthew Cheung showed that “Unemployment rate stood at 3.4%” in the third quarter period, unchanged since May 2016. While that is true, it does not necessarily indicate a positive occurrence. Having a high percentage of unemployment rate, reflects the poor state of employment across the country.

The underemployment rate was also steady at 1.4 percent. Movements in the jobless rate in different industry sectors varied: an increase was mainly seen in the warehousing and support activities for transportation sector while a decrease was mainly in the wholesale sector. The number of unemployed persons declined by around 600 to 140,600 and of underemployed persons also went down by around 600 to 55,300. Total employment decreased by around 3,400 to 3,813,400.

So, what exactly is 'Unemployment Rate”?
An unemployed person who is willing, and is actively looking for work but fails to find one, contributes to the percentage of the unemployment rate in the total workforce. This measurement is usually considered as a lagging indicator of labour market performance and market trends. 

Underemployed
Underemployment on the other hand is a measure of employment and labor utilization in the economy that looks at how well the labor force is being utilized in terms of skills, experience and availability to work. Labor that falls under the underemployment classification includes those workers who are highly skilled but working in low paying jobs, workers who are highly skilled but working in low skill jobs and part-time workers who would prefer to be full time.

Why Does the Unemployment Rate Matter?
When workers are unemployed, they lose their wages and disposable income. As a nation, this means a lost of its contribution to the economy in terms of the goods or services. An unemployed worker also loses their purchasing power, which can lead to unemployment for other workers, creating a cascading effect that ripples through the economy. Therefore the contrary applies - Low unemployment improves efficient use of resources, which is beneficial to the overall economy, generating at an optimal level. Low unemployment also signals the confidence in marketplace, resulting in expansion of operations and business, demand in employment increases at higher wage and higher Consumer Buying Power. Consumer spending impacts the economic growth, and in addition, it reduces the strain on the government, and taxpayers, to support a large population of people who are out of work. More people working allow the government to bring in more tax revenue. Higher revenue and reduced payouts creates a more fiscally responsible operation. That said, while a big majority of the sectors and MNCs may have retrenched and downsized their staff strength and operations, there are still pockets of opportunities available. Some of which are in the:

Risk Management, Audit & Compliance
With the recent bad spate in the financial institutions and China’s more stringent anti-corruption legislation, Banks and Financial institutions are continuing their hires for Compliance and Risk Management professionals to strengthen their risk management and anti-money laundering policies.

Sales Hunter Professionals
Sales Hunters are crucial in this shrinking market, and often plays a major role in the survival of the business. The demand for quality and strong Sales Hunters with proven track records are high.

Technologies
Cloud computing, Digital Marketing, Ecommerce, Data Analytics, Mobile and Digital Technology, Mobile Apps Development, Programmers etc are in great void of talents and in high demand. This includes introduction of financial systems with competitive edge to enhance business efficiencies.

Whether you are looking for opportunities in your career transition or looking for candidates in the above sectors and beyond, Gemini is here to assist. We are most happy to meet and discuss the details. Start contacting your Gemini consultant today. www.gemini-global.com

Source:http://www.tradingeconomics.com/hong-kong/unemployment-rate