The jobless rate crept up by 0.1 points to 6.3% in the three months to April 30, the Census and Statistics Department reported.
About 216,000 people were out of work, an increase of more than 40% compared to the first three months of last year. The under-employment rate, which measures people who want to be in full-time work, rose from 1.9% early in 1998 to 2.8%.
Hong Kong's economy contracted by 5.1% last year, the value of the stock market fell by 60% and property prices almost halved.
Joseph Wong, secretary for education and manpower, said the job situation had begun to improve in two of the hardest hit sectors - construction and tourism - but labour unions claimed it is worse than official figures show.
In April, the number of tourists to the territory increased by 11%.
