Confirming preliminary estimates released earlier, final data showed that the labour market improved in 2018. Total employment growth was the highest since 2014, with local growth more than double that of foreigners. Significantly fewer employees were also retrenched. Along with higher employment growth, the recruitment rate picked up, and the unemployment and resident long-term unemployment rates fell.

However, labour market trends were mixed in fourth quarter of 2018. While a higher job vacancy to unemployed ratio, lower retrenchments, and a higher re-entry rate among retrenched locals pointed to continued improvements, we observed that total employment grew at a moderated pace compared to the previous quarter. There was also a slight increase in the resident unemployment and long-term unemployment rates across most age and education groups.