With businesses hammered by social-distancing measures, Hong Kong unemployment rate to rise again: government economist

But while further Covid-19 relief measures can be expected in next month’s budget address, they will be of the targeted variety, says Andrew Au

Hopes for recovery in 2021, meanwhile, hinge on global vaccinations and the city’s ability to piggyback on mainland China growth, webinar hears

3-MIN READ3-MIN

A government economist has warned the city’s unemployment rate for October-December would only go up from the three months’ prior. Photo: Roy Issa

Published: 4:19pm, 7 Jan 2021Updated: 11:32pm, 7 Jan 2021

Hong Kong’s unemployment rate, already at a 16-year high, will get worse before it gets better, a government economist predicted on Thursday, though further relief measures for industries slammed by the Covid-19 pandemic were on the way in the administration’s annual budget.

Andrew Au Sik-hung said the jobless figures for October to December would grow from the three months prior – when they hit 6.3 per cent – due to stringent social-distancing measures triggered by a fourth wave of coronavirus infections.

The government began to tighten preventive measures in November, drastically curtailing restaurant operating hours and seating capacity, and forcing closed bars, beauty salons and gyms to shut. The rules are set to remain in place until at least January 20.

A complete lack of tourists due to border closures, meanwhile, has continued to plague retail businesses long dependent on spending by cross-border visitors.

“I will not be surprised to see the unemployment rate rise slightly,” Au said at a Hong Kong General Chamber of Commerce webinar on the city’s economic future. The official figures for the quarter will be released on January 19.

Jobseekers fill out application forms at a job fair held by Hong Kong’s Labour Department in October. Photo: Nora Tam