Hong Kong's Jobless Rate Climbs To 4.5 Percent

Hong Kong's unemployment rate for the three-month period ending in February has risen to 4.5 percent, the highest since September 2021.

The latest figure marks a substantial jump from the 3.9 percent logged over the previous three months.

The Census and Statistics Department says the underemployment rate also rose from 1.8 percent to 2.3 percent.

The working population shrank by around 33,700 people to around 3.64 million, while the number of unemployed people increased by around 22,700 to approximately 158,000.

Almost all major sectors saw increases in both the jobless and underemployment rate, with more distinct rises recorded in the construction, retail, accommodation, catering, arts, entertainment and recreation industries.

For example, the unemployment rate for the catering sector surged by 1.9 percentage points to 8.1 percent.

The jobless rate for the arts, entertainment and recreation sector also increased sharply by 2.9 percentage points to 8.2 percent.

Labour minister Law Chi-kwong said the labour market deteriorated sharply due to the fifth wave of the pandemic.

"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.

“While the relief measures adopted by the government should render some support, the labour market development going forward would hinge on how the local epidemic evolves. It is thus essential for the community to work in unison to support the government to put the local epidemic under control as swiftly as possible."

Simon Lee, an honorary institute fellow from the Asia-Pacific Institute of Business, said he believes the jump in the jobless rate is mainly down to the government’s Covid restrictions.

He said the employment situation will likely deteriorate further if strict social distancing measures remain in place.

“I think if existing measures continue, the unemployment figure would further rise to maybe five percent, because the situation is quite [bad] in February and March. We’ve never seen in Hong Kong quite a number of shops and restaurants... either needing to close completely... or [having] to close either in the night sessions or during the major operating hours in the day.”

He added that the government can reactivate some economic activities by allowing vaccinated people to visit places like beaches, restaurants and concert venues.

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