In the first quarter of 2025, the unemployment rate stayed constant at 3.2%, reflecting a stable labor market despite certain fluctuations in employment and underemployment figures. The total number of employed individuals slightly decreased, while the labor force also saw a modest decline. However, there was an increase in both unemployed and underemployed people. Government officials highlighted potential challenges posed by global trade tensions but expressed optimism about ongoing support from mainland economic policies and local initiatives.

While these numbers indicate stability in the broader sense, shifts in specific areas such as employment levels and underemployment suggest underlying complexities affecting the workforce. Officials pointed out that external factors could impact hiring trends, yet they remained hopeful due to supportive measures being implemented both regionally and nationally.

Labor Market Dynamics in Early 2025

During the initial months of 2025, the labor market exhibited mixed indicators. Although the unemployment rate did not change, other metrics revealed subtle movements. Employment totals dipped slightly, accompanied by a reduction in the overall labor force. Simultaneously, increases were observed in the counts of unemployed and underemployed individuals. These developments underscored the intricate balance within the job market during this period.

More specifically, the total employment count fell by approximately 16,800 individuals between December 2024 and February 2025. Concurrently, the labor force shrank by 5,800 people. Despite these reductions, the unemployment rate held steady at 3.2%. On the other hand, the number of unemployed persons rose from 111,700 to 122,800, and the underemployment figure climbed from 40,700 to 42,700. Such changes highlight how various components of the labor market can shift independently even when macro-level statistics appear stable.

Potential Challenges and Supportive Measures

Amidst an uncertain global economic climate, government representatives acknowledged possible hurdles for certain sectors. Escalating trade disputes could dampen hiring enthusiasm in some industries. Nevertheless, officials maintained confidence in the resilience of the labor market, bolstered by supportive actions taken at multiple levels. Policies aimed at stimulating economic growth provided a foundation for maintaining employment opportunities.

Chris Sun, Secretary for Labour and Welfare, noted that intensified trade conflicts might influence hiring sentiments in select areas. Yet, he emphasized the positive effects of mainland China's economic expansion, driven by central government initiatives, along with diverse strategies enacted by the Hong Kong Special Administrative Region. These efforts collectively aimed to foster economic progress and assist businesses, thereby sustaining labor demand. By combining regional and national supports, authorities hoped to mitigate any adverse impacts stemming from external uncertainties while reinforcing the strength of the local labor market.