F&B sector's unemployment rises to six-year high in August-October

Unemployment in consumption and tourism sectors rose to 5% during the period.

The number of jobless in the food and beverage (F&B) sector jumped to a six-year high at 6.1% amidst deteriorating labour market conditions given ongoing social incidents.

Data from the Census and Statistics Department (C&SD) revealed that the city-wide unemployment rate rose to 3.1% during the three-month period ending in October after stabilizing at 2.9% from July-September.

Unemployment in the consumption- and tourism-related segment notedly rose to 5% during the period, the highest since the beginning of 2017, the Secretary for Labour and Welfare, Law Chi-kwong, said in a commentary for C&SD.

Apart from the tourism and consumption segments, the construction sector’s unemployment rate, particularly of those involved in decoration, repair and maintenance for buildings, deteriorated visibly, a government spokesperson commented.

Total employment decreased by around 11,600 from 3.86 million in July-September to 3.94 million in August - October 2019. Over the same period, the labour force also decreased by around 6,400 from 3.98 million to more than 3.96 million.

The number of unemployed persons (not seasonally adjusted) increased by around 5 100 from 120,300 in July-September to 125,400 in August-October.

The underemployment rate also increased from 1% in July - September to 1.2% in August - October, with the number of underemployed persons rising by around 4,400 from 41,500 to 45,900.

Looking ahead, Law commented that the unemployment rate will be under increasing upward pressure as “local social incidents involving intensifying violence continue to take a heavy toll on the economy.”