Upswing: The unemployment rate rose to 4.1% in the October to December period while the underemployment rate grew to 1.9%.

The unemployment rate rose to 4.1% in the October to December period, from 3.8% in the September-November quarter. The underemployment rate nudged up from 1.8% to 1.9%.

Noting the rising trend reflected the impact of the recent financial turmoil, Secretary for Labour & Welfare Matthew Cheung forecast pressure will remain on the unemployment rate in the coming months.

"We will press ahead with the 10 major infrastructure projects and expedite the implementation of other minor works. In the next financial year the Government will spend more than $29 billion in works projects, creating 45,300 jobs," he said. "Through expediting the recruitment of civil servants and creation of temporary jobs, over 11,000 job opportunities will also be made available."

Mr Cheung said it is the normal practice for employers to review and if necessary adjust their staffing position after the Lunar New Year holiday. He called on employers to seriously explore measures other than staff redundancy.

The Government will closely monitor the employment situation and continue to enhance its employment services on all fronts, especially in netting suitable vacancies from the market.

Widespread increase

Increases in the unemployment rate were mainly seen in the decoration and maintenance, restaurants, import-export, transport and manufacturing sectors. Rises in the underemployment rate were mainly seen in the construction, amusement and recreational services, and transport sectors.

Total employment grew by 11,200 to 3,544,300 while the labour force grew by 16,200 to an all-time high of 3,685,700. The number of unemployed people rose to 141,300 while the number of underemployed people grew to 69,800.

Last month the Labour Department netted 42,758 private-sector vacancies, down 4.2% on the figure of 44,647 a month earlier. Last year it captured more than 670,000 vacancies from the private sector, up 20% on 2007.

Growth last year was mainly seen in the first three quarters. The vacancies netted in the fourth quarter, which reflected the initial impact of the financial turmoil on the job market, was about 146,000, down 4.8% over the same period in 2007.