P. M. BRIEFING : Labor Shortage Worries Hong Kong

Hong Kong reported a record low unemployment rate today, and analysts said the labor shortage could seriously damage the economy.

Unemployment dropped to 1.2% in the December-February quarter against 1.6% a year earlier and 1.3% in the quarter ended in November, the government said.

Economists said there is a danger that Hong Kong’s exports could price themselves out of the market. The government had hoped that the labor shortage will help the British colony switch more to services, but vacancies in that sector are also high.

The government figures are likely to add to already strong pressure from employers for the government to allow the import of labor, possibly from China.