FX.co ★ Hong Kong Unemployment Rate Hits Two-Year High

Hong Kong's seasonally adjusted unemployment rate slightly increased to 3.5% for the three months ending in May 2025, up from 3.4% in the previous period, marking the highest level since December 2022. This rise was largely due to ongoing industry adjustments amid external uncertainties and shifting consumer behaviors. The number of unemployed individuals grew by 6,400, reaching a total of 135,800, while overall employment fell by 12,400 to 3.66 million. The unemployment rate climbed across most key sectors, with noticeable increases in construction, retail, and real estate. Concurrently, the youth unemployment rate for those aged 20-29 held steady at 6.5% in May. The labor force participation rate also dipped slightly to 56.7% from 56.8%. Moving forward, the influx of new graduates and school leavers is expected to exert additional pressure on the job market.