HK’s unemployment rate rises to 4.5% – new ESS rollout

Source: HR Magazine By James Linacre on Mar 18, 2022

The Statistics Department yesterday (17 March) released new data that shows that Hong Kong’s unemployment rate rose by 0.6% to 4.5%. The latest batch of data means the seasonally adjusted unemployment rate increased from 3.9 per cent between last November to January to 4.5 per cent between December and February.

The most impacted sectors than saw observable increases included construction, retail, arts and entertainment, food services and recreation sectors. Secretary for Labour and Welfare, Law Chi-kwong commented, “The labour market will continue to face pressure in the near term, as the acute local epidemic weighs heavily on consumption-related activities and causing disruptions to a wide range of economic activities. 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.”

Given that many businesses continue to face hardships amidst the city’s fifth way, hope may be on the horizon. Chief Executive, Carrie Lam Cheng Yuet-ngor revealed that the Government plans to release in the following days information that may signify a shift towards an exit strategy.

New ESS announced

Furthermore, Mrs Lam also announced that the city’s government will be introducing a new round of the Employment Support Scheme which may benefit up to 1.3 million employees in the city. The scheme is targeting to open its applications next month with HK$ 31 billion earmarked to help businesses cover staff salaries during the three-month period from May to July.

Employees that earn over HK$ 30,000 per month will not be eligible for the wage subsidy —capped at HK$ 8,000 per worker. The full amount received under the new disbursement must also be spent on employees only.

However, large organisations and some business sectors that have not been heavily impacted by the fifth wave will not be eligible for new relief measures including large supermarket chains, pharmacies, property management companies, banks and financial institutions, telecommunications firms and delivery services.

Another relief measure —the Temporary Unemployment Relief, will start accepting applications for a three-week period starting 23 March. A one-off payment of HK$ 10,000 will be made to applicants that have worked for at least one month in Hong Kong during Q4 last year. Their monthly salary must also have been with a range of HK$ 2,700 to HK$ 30,000. The measure is expected to alleviate the situation of 300,000 temporarily unemployed persons in the city.