The local unemployment rate decreased slightly to 3.3 percent between October and December last year due tovibrant business activities and seasonal labor demand increase towards the year-end, but the government cautioned that uncertainties in the external environment will continue to affect hiring sentiment.

According to the Census and Statistics Department data released on Thursday, the seasonally adjusted unemployment rate fell from 3.4 percent from September to November 2012 to 3.3 percent in the October to December 2012 period. The underemployment rate increased from 1.4 percent in the September to November 2012 period to 1.5 percent between October and December 2012.

Unemployment rate decreases were mainly observed in the insurance, cleaning and similar activities, and retail sectors. As to the underemployment rate, increases were mainly seen in the decoration, repair and maintenance for buildings, transportation, repair, laundry, domestic and other personal service activities sectors.

The government attributed the buoyant employment situation in the city to the recent prevailing strength of domestic demand and inbound tourism in the run-up to the Lunar New Year that boosted labor demand, thereby helping to keep the unemployment rate at a low level.

"The labor market remained tight in 2012 as a whole. Total employment sustained its growth and the unemployment rate stayed at relatively low levels, signifying another year of virtually full employment for the local workforce, with 90,900 jobs added in 2012 over 2011," Secretary for Labor and Welfare Matthew Cheung said in a government statement.

oswald@chinadailyhk.com

(HK Edition 01/18/2013 page2)