HONG KONG - HONG Kong's unemployment rate rose to 5 per cent in the three months ending February, the highest in almost three years, as the downturn continues to weigh on the job market, authorities said Tuesday.

The figure was up sharply from 4.6 per cent in the November-to-January period, the Census and Statistics Department said in a statement.

It was the highest since the three-month period to end April 2006, when the jobless rate also reached 5 percent, according to Dow Jones Newswires.

The number of unemployed people increased to 171,900 in the December-to-February period, from 157,700 in the three months to end January.

In the three months to the end of February, employment fell by around 17,500 to about 3,512,500. Over the same period, the labour force decreased by around 3,200 to 3,684,500.

A government spokesman said unemployment continued to worsen after the Lunar New Year, which this year fell in January.

The spokesman said the unemployment rate was expected to go up further in the near term, as labour demand remained weak because of the economic downturn.

In its annual budget unveiled last month, the government said it would spend 1.6 billion Hong Kong dollars (S$322 million) to create 62,000 employment and internship opportunities. -- AFP