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Saturday, Feb 22, 2025
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Need not worry about climbing unemployment rate
There is no need to worry about Hong Kong’s economic outlook despite the rising unemployment rate, wrote Financial Secretary Paul Chan Mo-po in a blog post on Sunday.
The unemployment rate from February to April this year rose by 0.4 percent to 5.4 percent, the highest level since April to June figures last year.
Chan wrote that the recently announced unemployment statistics could not accurately reflect improvements in market conditions since it does not account for time lag, adding that there is no need to be pessimistic about the job market, which he believes to be gradually improving.
Chan pointed out that business has improved at restaurants following the relaxation of social distancing measures last week. As planned by authorities, restaurants were allowed to operate up until midnight, while bars and karaoke rooms reopened to the public.
“As you may have noticed, there are more people at restaurants and shopping malls. Many restaurant employees have told me that business has been improving,” Chan wrote. “Although the figures have not improved, the atmosphere felt at restaurants shows that the job market is improving.”
On the other hand, senior civil servants are slated to receive pay rises of up to 7.26 percent amid an improving economic environment. But Lawmaker Regina Ip Lau Suk-yee said on a radio show Saturday that a pay raise is unlikely to happen, citing climbing unemployment rates.
Hong Kong’s consumer price index (CPI) in Q1 rose by 1.6 percent year-on-year, to which a 7.6 percent spike in basic food item prices contributed significantly. Chan said that the upward trend will slow down shortly.
Chan wrote that the recently announced unemployment statistics could not accurately reflect improvements in market conditions since it does not account for time lag, adding that there is no need to be pessimistic about the job market, which he believes to be gradually improving.
Chan pointed out that business has improved at restaurants following the relaxation of social distancing measures last week. As planned by authorities, restaurants were allowed to operate up until midnight, while bars and karaoke rooms reopened to the public.
“As you may have noticed, there are more people at restaurants and shopping malls. Many restaurant employees have told me that business has been improving,” Chan wrote. “Although the figures have not improved, the atmosphere felt at restaurants shows that the job market is improving.”
On the other hand, senior civil servants are slated to receive pay rises of up to 7.26 percent amid an improving economic environment. But Lawmaker Regina Ip Lau Suk-yee said on a radio show Saturday that a pay raise is unlikely to happen, citing climbing unemployment rates.
Hong Kong’s consumer price index (CPI) in Q1 rose by 1.6 percent year-on-year, to which a 7.6 percent spike in basic food item prices contributed significantly. Chan said that the upward trend will slow down shortly.
