Hong Kong Unemployment Rises to 3.9% as Labour Force Growth Outpaces Hiring

155,000 People Unemployed Despite Growth in Employment

Hong Kong's seasonally adjusted unemployment rate rose to 3.9% in July to September 2026, with 155,000 people out of work, as the number of people entering the labour market grew faster than employment. Figures released by the Census and Statistics Department on October 22 also showed rising underemployment, particularly in restaurants and retail.

The unemployment rate increased from 3.8% in June to August, while the underemployment rate edged up from 1.9% to 2.0%. The number of unemployed people increased by about 1,100, and another 2,900 people joined the ranks of those working fewer hours than they wanted or were available to work.

Total employment nevertheless rose by about 3,000 to 3,655,000. The labour force, which includes employed people and unemployed people seeking work, expanded by about 4,100 to 3,810,000. Secretary for Labour and Welfare Chris Sun attributed the continued growth partly to fresh graduates and school leavers entering the labour market.

The headline unemployment rate was also above the market expectation of 3.8%. For job seekers, the figures describe a market where employment was expanding, yet the increase was insufficient to absorb the larger pool of people looking for work.

Why Employment and Unemployment Rose Together

Hong Kong had 3,652,000 employed people and a labour force of 3,805,900 in June to August. By July to September, both numbers had increased, but the labour force grew by roughly 1,100 more people than employment did. That difference matches the increase in unemployment from 153,900 to 155,000.

A graduate entering the labour market can increase the number of unemployed people while searching for a first job, even as employers elsewhere hire more workers. Sun's explanation places the latest figures partly in that context: more people were seeking work as the school year gave way to employment searches.

The labour force participation rate remained at 56.6%. This measures the share of the relevant population that is working or actively seeking work. A stable participation rate can accompany an increase in the number of workers because the rate expresses a proportion, while the labour force figure counts people.

The department's figures compare June to August with July to September. Those periods share two months, so the latest release updates a rolling picture of employment rather than measuring two entirely separate quarters.

How to Read the Different Unemployment Rates

The seasonally adjusted unemployment rate was 3.9%, while the rate without seasonal adjustment rose from 4.0% to 4.1%. Seasonal adjustment accounts for recurring patterns during the year, such as changes associated with school leavers entering employment, to make comparisons between periods easier.

The 155,000 unemployed people represented about 4.1% of the labour force of 3,810,000. That calculation corresponds to the unadjusted rate. The headline figure of 3.9% includes the statistical adjustment for seasonal patterns.

The department's detailed comparison gives the preceding seasonally adjusted rate as 3.8%, making the increase 0.1 percentage point. A figure of 3.7% has also been cited for the preceding period, which would imply a rise of 0.2 percentage points. The detailed June to August figures underpin the comparison used here.

The sequence of the release is:

• June to August 2026: unemployment stood at 3.8%, with 153,900 people unemployed and 72,100 underemployed.
• July to September 2026: unemployment reached 3.9%, with 155,000 unemployed and 75,000 underemployed.
• October 22, 2026: the Census and Statistics Department announced the latest labour market figures.

Which Industries Faced More Pressure?

Social work activities and warehousing and support activities for transportation recorded more noticeable increases in unemployment in the department's detailed industry breakdown. The latter category covers activities supporting the storage and movement of goods, rather than transportation alone.

Construction was also identified as an industry experiencing a more distinct unemployment increase alongside social work, although the detailed October 22 breakdown singled out warehousing and transportation support. Numerical unemployment rates for these individual industries were not specified in the release details.

Restaurants and retail stood out for a different reason: they accounted for the main increases in underemployment. Workers in these industries may still have a job while receiving fewer working hours than they want, putting pressure on household income without necessarily increasing the unemployment count.

The industry figures describe uneven conditions across the economy. Social work and activities supporting transportation faced more pronounced unemployment increases, while food services and shops faced greater pressure on working hours.

Underemployment Increased Faster Than Unemployment

The number of underemployed people rose from 72,100 to 75,000, an increase of about 4.0%. The unemployed population increased from 153,900 to 155,000, or about 0.7%. Although unemployment received the headline attention, the proportional increase was larger among people seeking more work.

Underemployment means a person has employment but insufficient working hours under the statistical definition. For someone paid by the hour or by the shift, fewer hours can reduce earnings even when their name remains on an employer's payroll.

The additional 2,900 underemployed people also outnumbered the additional 1,100 unemployed people. Together, the movements show why the employment total alone gives an incomplete picture of the pressures workers face: the number of people with jobs rose, while more workers were also short of hours.

Young Adults Faced a Higher Jobless Rate

The unemployment rate for people aged 20 to 29 remained unchanged at 9.1%. That was more than twice the unadjusted rate of 4.1% for the workforce as a whole, showing that younger adults faced a substantially higher level of unemployment even without a further increase in their rate.

Sun said fresh graduates and school leavers continued to enter the labour market. Those entering employment for the first time must find an opening and secure an offer before moving into the employed population, making the pace of recruitment especially relevant to them.

The unchanged rate for people aged 20 to 29 sat alongside an increase in the headline unemployment rate. The age group includes people with several years of work experience as well as recent graduates, so its 9.1% figure describes a wider group than those leaving education this year.

Sun Sees Support From Growth and Tourism

Sun expected continued economic expansion, improving business sentiment and rising visitor arrivals to support employment, particularly in industries serving consumers and tourists. Restaurants and retailers are among the businesses that could benefit when visitors and residents spend more.

The labour and welfare secretary also warned that changes in the economy and uncertainty outside Hong Kong could leave some employers cautious about recruitment. Explaining the pressures on individual industries, Sun said:

The employment situation in some sectors would continue to face challenges during economic restructuring. The increasing external uncertainties could also weigh on corporate hiring sentiment,

Economic restructuring means that the mix of businesses, jobs and skills an economy needs is changing. Workers in an industry facing weaker demand may need a different role or new training even while employment expands elsewhere.

The government's position combines an expectation of support from growth with concern about recruitment in particular industries. Sun said officials would continue monitoring how external uncertainty affects employers' willingness to hire and provide support for job seekers.

A Lawmaker Calls for Changes to Labour Policy

Legislator Lam Chun-sing, of the Federation of Hong Kong and Kowloon Labour Unions, expressed concern about persistently high unemployment in catering. He said restaurant closures, including the loss of large Chinese restaurants, and fewer vacancies were making it harder for unemployed catering workers to find another job.

Lam also said catering accounted for the largest number of imported workers under the Enhanced Supplementary Labour Scheme. He urged the government to tighten the proportion of imported labour allowed in industries with high unemployment.

His training proposal would place recruitment before training, with workers hired first and then taught the skills needed for their new roles. Lam called for larger, more targeted programmes to help people change occupations as technology and industrial change reshape demand for workers.

Those suggestions were proposals from the lawmaker. The government's stated response was to monitor hiring conditions and support job seekers; it announced no timetable in these remarks for changing labour import arrangements or introducing Lam's proposed training model.

Key Points

• Hong Kong's seasonally adjusted unemployment rate rose from 3.8% to 3.9% in July to September 2026.
• Unemployment increased by about 1,100 people to 155,000, while employment grew by about 3,000 to 3,655,000.
• The labour force expanded by about 4,100, outpacing the increase in employment.
• Underemployment rose from 1.9% to 2.0%, affecting 75,000 people, with increases concentrated in food services and retail.
• Unemployment among people aged 20 to 29 remained at 9.1%.
• Chris Sun expected economic growth and tourism to support jobs while warning of industry changes and external uncertainty.
• Lam Chun-sing proposed tighter labour import proportions in industries with high unemployment and training linked to recruitment.