HONG KONG - HONG Kong's jobless rate increased to 5.3 per cent in the three months ending April, government statistics showed on Tuesday, the highest level in three years.

The figure is up from 5.2 per cent in the three months ending March, as the construction, food and manufacturing sectors were hit by a reduction in work, the Census and Statistics Department said in a statement.

The number of unemployed people increased by around 9,700 to 196,900 over the period, while the workforce increased by around 4,100 to an all-time high of 3,699,000, the figures showed.

Secretary for Labour Matthew Cheung said the unemployment rate was expected to remain high in the short term as labour market demand remained weak under the deepening impact of the recession.

The outbreak of human swine flu has also emerged as a new source of uncertainty and pressure on the labour market, Mr Cheung said.

'We will continue to adhere to our strategy of stabilising the financial system, supporting enterprises and preserving employment,' he said in a statement.

Hong Kong's economy is expected to contract by between 5.5 and 6.5 per cent in 2009, as the export and financial hub is buffeted by the global slowdown. -- AFP