Hong Kong unemployment set to surpass 7 per cent after Lunar New Year, minister warns as Covid-19 continues to strangle the economy
- ‘High chance’ of jobless figure breaking 7 per cent mark, according to labour secretary, in what would be a new 16-year high
- Law Chi-kwong rejects labour unions’ call for a monthly HK$9,000 allowance for the city’s unemployed
But Law Chi-kwong rejected labour unions’ calls to issue a monthly cash allowance of HK$9,000 (US$1,160) to the jobless, saying it would “distort the relationship” between employers and staff.
“Unemployment is estimated to peak after Lunar New Year, with a high chance of exceeding 7 per cent according to the current trend. But it’s not likely to hit the level during the Sars outbreak [severe acute respiratory syndrome],” he said, referring to the 8.5 per cent jobless rate recorded amid the 2003 health crisis that killed 299 people in the city.
According to the official figures released last month, the catering sector posted a jobless rate of 13.8 per cent, compared with 8.8 per cent for hotels and retail’s 8.3 per cent.
Seven per cent unemployment in Hong Kong would equate to nearly 287,000 people. The next official jobless figures are due to be released on February 18.
To support those without work, the government earmarked HK$6 billion (US$774 million) to create 30,000 time-limited jobs, and lowered the application thresholds for the Comprehensive Social Security Assistance (CSSA) scheme. As of last December, 1,000 time-limited jobs were taken, while 19,500 people applied for the CSSA scheme after they were sacked.