'Jobless Rate To Hit Another Record High'

The financial secretary, Paul Chan, said Hong Kong's next round of job statistics – to be released on Tuesday – will show unemployment surpassing a sixteen-year high, as the city continues to grapple with the fourth wave of Covid-19.

The minister's warning on Sunday means the jobless rate for the period covering October to December last year will exceed the 6.4 percent recorded between last July to September – the highest level since the onslaught of Sars in 2003.

Businesses such as restaurants, bars, cinemas, gyms and beauty parlours have been hit hard ever since tighter social distancing measures came into place in early December.

Writing on his blog, Chan warned of more layoffs and business closures after the Lunar New Year holiday, saying the pandemic is affecting a key time of the year for many industries.

He said even though the economy is expected to return to growth this year, the current situation remains extremely worrying.

The finance chief added that his upcoming budget – scheduled to be announced next month – will not only focus on meeting current challenges, but also address the need to plan and invest in the future.