Hong Kong’s seasonally adjusted unemployment rate dropped for the second straight quarter to 3.7 percent in January-March 2026 from 3.8 percent in December 2025-February 2026, official data showed on Thursday.

The city’s underemployment rate also decreased to 1.6 percent from 1.7 percent during the same period, according to the Census and Statistics Department (C&SD).

The city’s jobless rate had previously decreased from 3.9 percent in the November - January period to 3.8 percent in the December - February period.

"The sustained growth of the Hong Kong economy should underpin the overall labor market,” Secretary for Labour and Welfare Chris Sun Yuk-han said.

“The government will continue to closely monitor the developments in geopolitical tensions and assess the potential implications for the labor market."

Comparing January - March 2026 with December 2025 - February 2026, there was a more notable decrease in the accommodation services sector, the department said.

READ MORE: HK unemployment rate ticks up to 3.9% in November-January

For the underemployment rate, a decrease was mainly seen in the foundation and superstructure sector, it added.

Total employment decreased by around 7,300 from 3,663,000 in December 2025 - February 2026 to 3,655,700 in January - March 2026.

Over the same period, the labor force also decreased by around 5,300 from 3,797,700 to 3,792,400, the department added.