The main purpose of this study is to examine the relationship between new arrivals from the mainland of China holding one-way permit holders (OWPH), inflation, gross domestic product (GDP) and youth unemployment. Hong Kong is expected to undergo a continuous economic slowdown and a shrinking labour market under the financial crisis. Young people, especially those with low educational attainment, low levels of skill and those continuously unemployed, will find it even harder to secure a job. This paper found that the Johansen test result reveals that the variables are cointegrated and the ordinary least squares estimator suggest that inflation and GDP are closely related to youth unemployment in Hong Kong. Also, the ordinary least squares test reveals that it may not be concluded that the OWPH are related to the youth unemployment in Hong Kong.