Hong Kong Jobless Rate the Lowest in Nine Years

The jobless rate in Hong Kong has remained at the lowest level in nine years, which has resulted in sustained consumer confidence and spending.

Announced by a government website today, the unemployment rate of 3.4 percent is unchanged from December and it remains at the lowest since 1998.

The number of people employed in the city has increased by 18,000 in January to a record of 3.55 million

Low unemployment, falling interest rates and increased domestic consumption will help the city cope with the reduction in exports due to the US slowdown.

Banks, law firms and retailers are benefiting from the boom in China and are currently recruiting in order to facilitate expansion.

According to a survey conducted by recruitment firm Hudson Global Resources of the 683 executives in Hong Kong, 58 percent said they are going increase hiring in the first quarter. A 53 percent rise form the last quarter.

The economy grew 6.2 percent in the third quarter in relation to last year and household spending increased by 9.7 percent over the same period.

There is a fear that the tight labour market will create inflationary pressure as companies may pass on the costs or rising wages to the consumers and end users.

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