“The labour market will continue to face pressure in the near term, as the acute local epidemic is weighing heavily on consumption-related activities and causing disruptions to a wide range of economic activities,” he said.

In the latest period, the number of unemployed people increased by about 22,700 from 135,200 in the three months ending January this year to 157,900 in the same period ending in February.

The underemployment rate also increased by 0.5 percentage point to 2.3 per cent.

Unemployment in the food and beverage service sector, which has been hit especially hard by the pandemic, surged 1.9 percentage points to 8.1 per cent.

The jobless rates of the construction sector and the arts, entertainment and recreation industry increased sharply by 1.5 and 2.9 percentage points to 6.2 per cent and 8.2 per cent respectively.

Hong Kong could ease social-distancing rules next week; 21,650 Covid cases reported

Chief Executive Carrie Lam Cheng Yuet-ngor signalled earlier on Thursday that the government was considering easing its anti-epidemic measures, conceding the public’s tolerance was “fading”.

Many of the measures up for review – including flight bans, class suspensions and quarantine periods for incoming travellers – were supposed to last until April 20, with adjustments now expected to be announced as early as Sunday.

The city is currently battling its worst wave of the coronavirus pandemic yet. Social-distancing restrictions were tightened just last month, with all public gatherings of more than two people banned, and no more than two households allowed to congregate in private. Dine-in service in restaurants is forbidden after 6pm, and schools and public beaches are closed. Premises such as gyms, cinemas and beauty parlours have also been forced to shut since January 7.

International gym chain Fitness First shuts down all Hong Kong branches

Several gyms have said they will permanently close as a result of the severe impact on their business, while chain restaurants have suspended operations at some branches due to a lack of customers and fears of staff contracting the coronavirus.

A vaccine pass scheme went into effect from February 24, requiring residents to show proof of inoculation when entering certain premises, including hairdressers, markets, malls and restaurants. Businesses previously warned the move would hurt revenue, as some people were still resistant to vaccination.

The city confirmed 21,650 new cases on Thursday, pushing the official tally to 996,862 infections with 5,136 Covid-related fatalities.

Figures released by the Social Welfare Department on Thursday, meanwhile, showed a slight increase of four cases for those receiving Comprehensive Social Security Assistance (CSSA).

The CSSA caseload at the end of February stood at 216,446, with a total of 303,442 welfare recipients.

Iris Pang, chief Greater China economist at financial services firm ING, said the reality of unemployment could be much higher than the official figures.

“Since the unemployment figures are reported in a three-month range, they mask the seriousness of the jobless situation,” she said.

Pang put the estimated unemployment rate for the month of February at 5.7 per cent, and warned that the figure could continue rising through April if social-distancing rules were not eased by then.

Anthony Yau Yiu-shing, vice-chairman of the Federation of Trade Unions, lamented that there was “no end in sight” to the social-distancing measures, which had already started a new “unemployment wave”.

Yau said he believed the government’s one-off unemployment subsidy of HK$10,000 (US$1,280) was insufficient. He suggested authorities give HK$9,000 per month in wage subsidies for a period of six months to help residents get through tough times.