Hong Kong’s unemployment rate has risen to a three-year high. According to the latest data released by the Census and Statistics Department, the seasonally adjusted unemployment rate rose to 3.9% for the period from July to September 2025, an increase of 0.2 percentage points from 3.7% during June to August. This marks the highest level since September 2022. During this time, the number of unemployed individuals increased by approximately 4,600, reaching a total of 155,600. Meanwhile, the total labor force decreased slightly to 3.83 million, and the number of underemployed individuals also rose by 600 to 60,000, keeping the underemployment rate steady at 1.6%.
When classified by industry, the unemployment rates in the social work and construction sectors have seen a noticeable increase. Among them, jobs related to foundation and superstructure works, as well as building decoration and renovation, have experienced a quarterly rise of 0.3 percentage points in unemployment rates. In the retail sector, the unemployment rate has climbed further to 5.3%, making it one of the hardest-hit industries. Meanwhile, the unemployment rate in the food and beverage service sector has remained stable, while the finance and human health service industries have recorded slight declines, indicating that some sectors still have a degree of resilience.
The Secretary for Labor and Welfare, Sun Yuhan, has stated that Hong Kong is currently undergoing an economic transition, which has inevitably impacted some traditional industries. However, it is anticipated that economic activity will be more favorable in October, particularly during the National Day golden week, when there will be an uptick in tourist and consumer activities, potentially bringing short-term positive effects to the job market. He emphasized that the government will closely monitor changes in the labor market and will further enhance employment support and information dissemination.
Financial Secretary Paul Chan pointed out that as the economic structure continues to adjust, the demand for labor is naturally shifting. However, he believes that Hong Kong’s economy remains resilient, with the residential property market trending towards stability. The continuous growth in new job positions will help alleviate some employment pressures. He expects the local economy to maintain its expansion momentum in the coming months, which is beneficial for the overall development of the employment environment.
In addition to industry changes, shifts in consumer behavior have also become a significant challenge. Associate Professor Mak Choi Choi from the Department of Accountancy, Economics and Finance at Hong Kong Baptist University analyzes that the restaurant industry has been facing intense competition in recent years, resulting in over 2,000 eateries going out of business. However, the total number of registered restaurants has shown an increase, indicating that the newcomers in the market are primarily mainland brands. These brands possess advantages in cost and manpower management, further intensifying the operational pressure on local restaurant operators.
Mack Choi calls on the government to provide targeted re-employment support and training for affected workers, assisting them in re-entering the job market. He also warns that if traditional industries fail to adapt to market changes, unemployment rates may continue to rise, potentially impacting overall social stability in the long run.
With the global economic outlook continuing to be uncertain and external markets unstable, the government needs to keep a close eye on businesses’ hiring intentions. It should also implement policies that facilitate labor mobility and skill upgrades, allowing workers to find more suitable development opportunities in the new economic model.
