Hong Kong’s unemployment rate, which rose to 3.9 per cent between July and September—marking a three-year high—is expected to stabilise or even decline as the economy gains positive momentum, according to Financial Secretary Paul Chan Mo-po.
The government revised its GDP growth forecast for 2025 upwards from 2-3 per cent to 3.2 per cent, based on actual growth of 3.3 per cent in the first three quarters and the near-term outlook.
This revision follows the third quarter's 3.8 per cent year-on-year growth, the highest in over 1.5 years, driven by robust exports, consumption, and investment.
Paul Chan expressed optimism about the unemployment rate stabilising or declining amid the economy's positive momentum. He highlighted Hong Kong's attractiveness during the US-China trade war, noting the city's role as a free port and its currency peg to the US dollar, which has made it a refuge for capital.
Chan stated, “We have become a safe harbour for some people who dare not hold US bonds directly to hold ours,” adding that this confidence has led to a sharp rise in bank deposits.
For HR professionals in sectors like finance and manufacturing, this signals potential job market stability, encouraging strategies focused on talent retention and upskilling to leverage the improving economic conditions.
Source - South China Morning Post