Pedestrians use a crossing in Central, Hong Kong, on Feb 28, 2023. (ANDY CHONG / CHINA DAILY)

Hong Kong’s jobless rate remained at 2.9 percent for the October to December stretch, the same as from September through November, official data showed on Thursday.

The underemployment rate also remained unchanged at 1 percent throughout the two periods, according to provisional figures released by the Census and Statistics Department.

The labor force had declined by about 8,600 to around 3.81 million, while total employment had dropped by 1,900 during the three months ending December last year

Most sectors had either logged a decline or remained unchanged when the latest unemployment rates were compiled, said Secretary for Labour and Welfare Chris Sun Yuk-han.

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The labor force had declined by about 8,600 to around 3.81 million, while total employment had dropped by 1,900 during the three months ending December last year.

“The labor market should stay tight in the near term,” Sun said. “Though the still-unfavorable external environment may have some negative effects, the expected further recovery of inbound tourism and private consumption should continue to support labor demand.”

Hong Kong has been reeling from widespread concerns that a lack of manpower could pose challenges to its post-pandemic recovery.

However, Tang Hei-wai, a professor at the University of Hong Kong, said that the “brain-drain” narrative belies the fact that the city remains a magnet for the brightest minds and is witnessing a significant talent inflow.

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Since the pandemic restrictions were lifted and the borders fully reopened to the world last year, the Hong Kong government has launched a series of campaigns to trawl for workers outside the city, ranging from high-skilled to blue-collar workers.

Even though the city’s population had dropped from its peak of 7.52 million at the end of 2019 to 7.35 million by mid-2022, it has since almost fully recovered. According to the Census and Statistics Department, Hong Kong’s population had risen to around 7.5 million as of mid-2023.

Tang suggested that Hong Kong can utilize and integrate a wider range of administrative and company datasets to better monitor the health of the city’s labor force, improve policy design, and counter factually questionable narratives.

He also encouraged further efforts to retain young people — the generation most likely to emigrate as they are less established and have a long career path to consider.

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Tang added that the city could roll out more measures, such as subsidies for continuing education or overseas scholarships that would require recipients to return to Hong Kong to work.