HONG KONG, October 19, 2009 (AFP) - Hong Kong's unemployment fell to 5.3 percent between July and September, the first decline since the start of the global economic crisis, official data showed Monday.

The seasonally adjusted jobless rate dropped from 5.4 percent for the June-August period, and beat a median 5.4 percent forecast of eight economists surveyed by Dow Jones Newswires.

The number of jobless fell by 7,700 to 209,100, while the workforce declined by 7,400 to 3,704,700 in the three months ending September, according to the Census and Statistics Department.

Despite improving business conditions, the southern Chinese city's jobless rate will continue to be influenced by an economic recovery abroad, Matthew Cheung, Secretary for Labour and Welfare, said in a statement.

"As overseas markets have yet to show visible improvement, a sustained and solid recovery will hinge on a fundamental improvement in the external environment," he said.

"The recovery path may still be uneven."

Cheung also noted that the city's financial firms had been very active in their hiring drive in recent months.

The city's jobless rate hit a 10-year low of 3.6 percent in 2007.

Meanwhile, a Hong Kong Baptist University survey released Monday showed that local employees could expect an average 1.3 percent pay increase next year.