Hong Kong's jobless rate eases to 6.1pc, sees near-term pressure

HONG KONG: Hong Kong's unemployment rate for May to July eased slightly, from the highest in more than 15 years in the previous rolling period, as the local epidemic situation was largely under control and the government's relief measures provided support.

The seasonally-adjusted jobless rate for the three-month period ended in July, which saw the third wave of coronavirus infections in the city, eased slightly to 6.1pc from 6.2pc in April-June, government data showed on Wednesday.

"The labour market will remain under significant pressure in the near term," Secretary for Labor and Welfare Law Chi-kwong said in the statement.

"The recent surges in infected cases both worldwide and locally have further clouded Hong Kong's economic outlook for the rest of the year," Law added.

Under-employment also worsened, decreasing to 3.5pc from 3.7pc in the previous three-month rolling period.

The number of unemployed rose by about 1,800 people to 242,500 in the three months ending July.

Among the sectors with the highest unemployment rates in the three months ending July were the consumption- and tourism-related sectors, where the rate hit 10.8pc, the highest since SARS in 2003.

Joblessness in the food and beverage sector was at 14.6pc, the government release said.

On Tuesday, the government said it would roll out a third round of relief measures to mitigate the impact of the continued COVID-19 epidemic on the economy and to prevent unemployment from worsening.

Hong Kong's economy shrank 9pc year-on-year in the second quarter, suffering from the triple impact of a tightened trade environment, prolonged social disturbances and the epidemic.

The Chinese-ruled city is battling to control a resurgence in infections over the last month, with local infections of more than 4,500 people so far.