Hong Kong’s unemployment rate edged higher to 3.9% for the period November 2025 to January 2026, up from 3.8%in the preceding October–December period, according to the latest figures released by the Census and Statistics Department (C&SD) .
While the increase was marginal at 0.1 percentage point, the data points to emerging pressure in selected sectors, particularly insurance, construction, and financing, even as the broader labour market remains largely stable.
The seasonally adjusted unemployment rate rose to 3.9% during the three-month period . Though modest, a gradual softening compared to the previous rolling quarter.
In absolute terms, the number of unemployed persons (not seasonally adjusted) stood at 138,400, compared with 138,200 previously.
The change was small, suggesting that overall labour market conditions have not deteriorated sharply, but the direction of movement warrants attention.
Hong Kong’s unemployment rate remains relatively low by historical standards and compared with many developed economies.
However, business operators and policymakers will be monitoring whether the upward trend persists in the coming months.
Sector Pressures Emerging
Although overall movements were described as generally not large, the latest figures show uneven conditions across industries. Increases in unemployment were mainly observed in insurance, construction and financing.
Meanwhile, decreases were recorded in sectors such as transportation and cleaning and similar activities.
The rise in insurance and financing sector unemployment may reflect ongoing adjustments within financial services, amid a complex global economic environment.
Slower deal activity, cost rationalisation efforts and cautious expansion strategies among financial institutions could be contributing factors.
In construction, pressure may be linked to property market dynamics and project timelines.
The sector has been navigating fluctuating demand conditions, with developers and contractors adapting to changes in financing costs, project launches and investment flows.
These sector-specific movements suggest that while the overall economy continues to grow, certain industries are facing operational headwinds.
Underemployment Holds Steady
Despite the increase in unemployment, the underemployment rate remained unchanged at 1.7% .
Underemployment refers to individuals who are working fewer hours than they would like or who are not fully utilizing their skills. The stability in this rate indicates that part-time or reduced-hour arrangements have not significantly worsened during the latest period.
The number of underemployed persons stood at 65,100, compared with 64,800 in the previous period, effectively unchanged.
This stability suggests that while hiring may have slowed in certain areas, there has not been a broad shift toward reduced working hours or widespread labour underutilisation.
Employment and Labour Force Trends
Total employment recorded a slight decline of approximately 1,100 people, falling from 3,667,000 to 3,665,900 .
Meanwhile, the overall labour force remained broadly stable at 3,804,300, compared with 3,805,200 in the previous period .
The near-flat labour force figure indicates that participation levels have not materially shifted. There is no significant evidence of workers exiting the job market or re-entering in large numbers.
Taken together, these figures point to a labour market that is adjusting at the margins rather than experiencing broad-based contraction.
Commenting on the data, the Secretary for Labour and Welfare noted that the unemployment rate edged up over the preceding three-month period, while the labour force remained broadly on par with earlier levels .
Looking ahead, authorities highlighted that the sustained growth momentum of the Hong Kong economy should continue to support the overall labour market.
However, they acknowledged that employment situations in some sectors may remain under pressure amid challenging operating environments .
This assessment reflects a balanced view: macroeconomic conditions are not signalling recessionary stress, but industry-specific factors are influencing hiring patterns.
Broader Economic Context
Hong Kong’s labour market performance often serves as a real-time indicator of business confidence and economic momentum. The current 3.9% unemployment rate suggests moderate resilience, especially given global uncertainties and sector-specific adjustments.
For businesses, the relatively stable employment environment may help contain wage volatility. For job seekers, opportunities remain available, though competition could intensify in industries experiencing restructuring.
Similarly, trends within insurance and financing may provide signals about broader capital market activity and financial services health.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri
