Hong Kong jobless rate to worsen slightly before it improves in March to May period, labour chief says
- Secretary for Labour and Welfare Law Chi-kwong says city has passed peak of unemployment, with March’s jobless rate better than February’s
- Law predicts April’s unemployment rate to be worse than that of January, but says situation will improve as long as health crisis remains under control
Hong Kong’s labour chief has predicted the jobless rate will worsen slightly between February and April before it improves in the March to May period, along with the decline in the city’s fifth wave of coronavirus infections.
Law said the jobless rate for March was better than February’s, partly because of the government’s announcement of a wage subsidy called the Employment Support Scheme (ESS), which encouraged businesses to continue operating to receive the allowance in May instead of closing down.
He predicted April’s jobless rate would be worse than that of January when the fifth wave just started. Nevertheless, as the health crisis continued to be brought under control, employment would improve, he said.
“We have already passed the peak of unemployment. As long as the pandemic continues to be under control, the situation will improve,” he told a radio programme, adding the monthly jobless rates were only for internal reference and not made public.
Law said the government for now would not consider setting up a long-term unemployment insurance scheme, as the amount of severance and long-service payments employers paid to staff in Hong Kong already exceeded the amount of unemployment insurance and severance payments offered by some Western countries, including Britain.
Applications opened on Friday until May 12 for the new round of ESS, which provides a total of HK$43 billion (US$5.48 billion) in subsidies. Employers can claim up to HK$8,000 a month for each eligible staff member for three months.