Hong Kong jobless rate could hit record high this year, experts warn, as unions urge for more relief measures

Felix Yip of Baptist University says some jobs may no longer exist, while forecasting unemployment rate will be higher than level recorded during Sars

Iris Pang, ING Bank Greater China economist, says many businesses will not be able to cover costs if the government does not extend wage subsidies

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Jobseekers fill out application forms at a fair organised by the Labour Department at Southorn Stadium in Wan Chai on Wednesday. Photo: Nora Tam

Published: 6:42pm, 28 Oct 2020Updated: 11:39pm, 28 Oct 2020

Hong Kong’s jobless rate could hit a record high at the end of this year if its struggling economy does not improve and relief measures are discontinued, analysts have warned.

Experts on Wednesday predicted that within two months at the earliest, the unemployment rate could surpass the record of 8.5 per cent set between April and June in 2003, when the severe acute respiratory syndrome (Sars) broke out in the city.

According to results of a report, the projected pay rise for workers next year would be less than 2 per cent. The survey was based on data collected before industries were hit hard by tough social-distancing measures brought about by the third wave of Covid-19 infections in July.

Presenting the study on the pay and benefits of workers in Hong Kong and neighbouring cities, Felix Yip Wai-kwong, associate director at Baptist University’s (HKBU) Centre for Human Resources Strategy and Development, said some types of jobs might no longer exist in the city amid the pandemic.

We forecast the unemployment rate will continue to rise … I feel it will be higher than what was recorded during Sars

Felix Yip, associate director, Centre for Human Resources Strategy and Development, Baptist University

“The [government’s] Employment Support Scheme can address urgent problems. But I don’t believe it will have a third phase.” Yip said. “We forecast the unemployment rate will continue to rise … I feel it will be higher than what was recorded during Sars.”