Hong Kong’ saw its seasonally adjusted unemployment increase to a 16-year high of 6.6% in the final quarter of last year. Q4’s figures, the highest since the final quarter of 2004, was a jump from the 6.3% recorded in the previous quarter.
The latest figure was worse than analysts had predicted. In a Bloomberg survey of economists, a reading of 6.4% was forecast. The number of unemployed increased approximately 1,500 people to 245,800.
At the heart of the rise in unemployment has been as a fresh new wave of coronavirus infections. The social distancing and restrictions upon businesses have curbed a lot of economic activity in Hong Kong, or to give it its official title, the Hong Kong Special Administrative Region of the People’s Republic of China.
The underemployment rate stayed unchanged at 3.4%.
Pandemic Weighs Heavily Upon Hong Kong’s Unemployment Rate
Labour Secretary Law Chi-kwong said in a statement:
“As the fourth wave of the local epidemic continues to weigh on local consumption sentiment and disrupt economic activities, the labour market will remain under notable pressure in the near term,”
The Government has rolled out targeted measures lately to provide further support to the hard-hit sectors, and will continue to monitor the situation closely.”
With the compulsory closures of gyms and beauty parlours, and social restrictions of no more than two people, it is no surprise that the unemployment rate for food and beverage sector increased to 13.8% from 13.1% the previous quarter.
Meanwhile, the unemployment rate for the consumption and tourism sectors combined increased by 0.5% to 10.6% in the last quarter of 2020.
Hong Kong has been hit hard by the pandemic following the economic disruption caused by the democracy protests in 2019.
