Group 1 - The unemployment rate in Hong Kong for the period from April to June 2025 is 3.5%, unchanged from the previous period [1] - The underemployment rate remains stable at 1.4% during the same timeframe [1] - Total employment decreased from 3,664,700 to 3,657,300, a reduction of approximately 7,400 individuals [1] Group 2 - The total labor force also declined from 3,800,500 to 3,793,500, a decrease of about 7,000 individuals [1] - The number of unemployed individuals (not seasonally adjusted) is reported at 136,200, which is similar to the previous figure of 135,800 [1] - The number of underemployed individuals decreased from 53,600 to 52,600, a reduction of about 1,000 [1] Group 3 - The unemployment rates across different industries showed varied changes, with declines noted in the arts, entertainment, and recreation sectors, as well as in professional and business services [1] - Conversely, increases were observed in the construction and food service sectors [1] - The Secretary for Labour and Welfare indicated that the trends in unemployment rates will differ across industries due to ongoing transformations [2]

Employment Statistics - In March 2025, total employment across all covered industries was 2,714,400, a decrease of 0.5% or 14,500 jobs compared to the same period last year [1][2] - The most significant employment increases were observed in the accommodation services sector (4.0% or 1,500 jobs), human health services (3.9% or 6,000 jobs), and real estate (3.7% or 5,100 jobs) [2] - Conversely, notable employment declines occurred in the retail sector (-4.6% or -11,100 jobs), wholesale trade (-3.4% or -1,700 jobs), information and communications (-3.3% or -3,600 jobs), and food services (-2.8% or -6,300 jobs) [2] Job Vacancy Statistics - As of March 2025, there were 55,170 job vacancies in private institutions, a decrease of 27% or 20,010 vacancies compared to the previous year [1][3] - The education sector accounted for 5,660 vacancies, followed by professional and business services (5,050), accommodation and social work services (4,950), food services (4,860), and financial and insurance services (4,660) [3] - Significant reductions in job vacancies were noted in transportation, warehousing, postal and courier services (-5,080 or -58%), human health services (-2,760 or -43%), and professional and business services (-1,670 or -25%) [3] Seasonally Adjusted Statistics - Seasonally adjusted figures indicated a slight increase of less than 0.05% in total employment and a decrease of 7.3% in total job vacancies when comparing March 2025 to December 2024 [4]

Economic Overview - The overall local GDP in Hong Kong increased by 3.1% in Q1 2025 compared to the same period last year, up from a 2.5% increase in Q4 2024 [1] Service Sector Analysis - The total value added by all service activities rose by 2.6% in Q1 2025 year-on-year, compared to a 1.7% increase in Q4 2024 [1] - The value added by import and export trade, wholesale and retail industries increased by 4.2% in Q1 2025 year-on-year, contrasting with a 0.2% decline in Q4 2024 [1] - The accommodation and food services sector saw a decrease of 1.8% in value added in Q1 2025 year-on-year, following a 2.6% increase in Q4 2024 [1] - The transportation, warehousing, postal, and courier services sector's value added rose by 2.9% in Q1 2025 year-on-year, down from a 6.8% increase in Q4 2024 [1] - The information and communications sector's value added increased by 1.3% in Q1 2025 year-on-year, slightly down from a 1.5% increase in Q4 2024 [1] - The financial and insurance sector's value added rose by 4.4% in Q1 2025 year-on-year, compared to a 1.9% increase in Q4 2024 [1] Other Industries - The real estate, professional, and business services sector recorded a 0.3% decline in value added in Q1 2025 year-on-year, following a 1.7% increase in Q4 2024 [2] - The public administration, social, and personal services sector's value added increased by 1.7% in Q1 2025 year-on-year, down from a 3.0% increase in Q4 2024 [2] - The local manufacturing sector's value added rose by 0.7% in Q1 2025 year-on-year, compared to a 1.0% increase in Q4 2024 [2] - The electricity, gas, water supply, and waste management sector experienced a 1.4% decline in value added in Q1 2025 year-on-year, following a 3.0% increase in Q4 2024 [2] Construction Industry - The construction sector's value added declined by 1.9% in Q1 2025 year-on-year, following a 4.7% decrease in Q4 2024 [3]

Core Insights - The overall business confidence among Hong Kong SMEs remains cautious despite a slight increase in the Composite Business Index to 43.8, reflecting the uncertain global economic outlook [1] - Three out of five sub-indices showed growth, specifically in "Business Conditions," "Profit Performance," and "Investment Intentions," while "Global Economy" and "Recruitment Intentions" declined [1] - The "Global Economy" sub-index fell to 24.9, nearing levels seen in Q2 2022, indicating increased challenges for Hong Kong SMEs due to global trade uncertainties [1] Investment Trends - Over 94% of surveyed Hong Kong SMEs plan to maintain or increase investments, with a focus on online marketing, e-commerce training, IT systems, R&D projects, and overall employee training [2] - The "Financial and Insurance" sector experienced the highest increase in the business index, while "Information and Communication," "Real Estate," and "Accommodation and Food Services" saw significant declines [2] Cost Expectations - The anticipated rise in material costs has slowed, with 54% of SMEs expecting increases, down three percentage points from the previous quarter [2] - The percentage of SMEs planning to raise employee salaries decreased by seven percentage points to 20%, and only 17% intend to increase product or service prices, down three percentage points [2] Future Business Strategies - Approximately 78% of SMEs have plans to adapt to current risks, primarily by increasing local customer bases and enhancing operational processes with AI/digital applications [4] - Nearly 29% of SMEs are considering expanding into other markets within the next three years, with a notable interest in mainland China and ASEAN regions [4][5] Support Initiatives - The Hong Kong Productivity Council has established "The Cradle Outbound Service Center" to provide comprehensive support for SMEs looking to expand overseas, addressing challenges in product, technology, and management exports [5]