Hong Kong Unemployment Below Pre-Crisis Levels

Hong Kong's level of full-time unemployment fell to 3.4% in the first quarter, meaning that it is now below the pre-crisis level of 3.6%. During the crisis it rose at most to 5.4%. Part-time unemployment/underemployment is at 1.8%, also slightly below the pre-crisis level

Hong Kong's boom is mostly sound, reflecting its laissez faire policies and the structural boom in mainland China. However, the pegging of the Hong Kong dollar to the super-weak U.S. dollar has also created strong inflationary tendencies that have only partially been counteracted by for example taxes on property sales. That is one of the reasons why the peg to the U.S. dollar should be ended.