The rate for the three months to November increased from 3.5 per cent during the three months to October, the Census and Statistics Department said in a statement.

Workers in retail, construction, manufacturing and import/exports were hit hardest, the statement said.

Total employment decreased by around 13,500, to 3,533,100. Over the same period, the labour force decreased by around 8,900.

The underemployment rate increased from 1.7 per cent to 1.8 per cent over the same period.

Secretary for Labour Matthew Cheung said he was concerned about the effect the global slowdown was having on the city's economy.

'The financial tsunami has caused a significant impact on economies around the globe and, as an open economy, Hong Kong will also be affected,' he said in a statement.

'It is vitally important that we should work closely together to weather the storm and reduce as far as possible the negative impact on employment,' he said, adding that planned infrastructure projects would create 60,000 jobs in 2009. -- AFP