The seasonally adjusted unemployment rate has fallen to a four-year low of 5.5 percent in the July-September period, from 5.7 percent in June-August, Hong Kong's Census & Statistics Department said Tuesday.

A drop in unemployment was seen in the construction, sanitary services, amusement and recreational services, and communications sectors, while underemployment rate falls were mainly seen in the amusement and recreational services, and wholesale trade sectors.

The Department said the four-year low came under the combined influence of an expansion in employment and a contraction in labor supply.

The reduced labor force was partly attributable to the return of many summertime workers to schools for the new academic year, while total employment grew on the back of sustained economic growth.

Looking ahead, the department said labor demand is likely to grow along with the sustained pick-up in Hong Kong's overall economic activity, which will have a positive effect on the employment situation in the coming months.

The government's commitment, as announced by the Chief Executive in his 2005-06 Policy Address, to embark on a number of works and community facility projects, expedite urban renewal and promote building maintenance will create employment opportunities for the construction, property management and related industries, the department said.

The extension of the individual visit scheme to cover four more Mainland cities - Chengdu, Jinan, Shenyang and Dalian - from Nov. 1 will boost inbound tourism and benefit the retail and job markets.

(Xinhua News Agency October 19, 2005)