Labour secretary warns of sharp rise in unemployment

Labour secretary warns of sharp rise in unemployment

Labour and Welfare Secretary Law Chi-kwong on Saturday said the coronavirus outbreak could result in nearly half as many more people being out of work, with Hong Kong's unemployment rate possibly rising to 5 percent from 3.4 percent now.



On Friday, legislators approved HK$30 billion in funding for the government's virus relief package. Law said its aim was to keep people in work.



"In this anti-epidemic fund, it is basically trying to help the employers to maintain their business as far as possible," he said. "And if they can maintain their business, then the employment can continue, instead of closing down or firing their own staff."



Law said measures to help the general public required a more macro perspective, and he guessed they would probably come in next week's budget.



There was near-unanimous support for the package in the Legislative Council, with 59 votes for and just three against.



However, lawmakers voted against a host of motions suggesting additional measures -- such as a HK$10,000 handout for all adult residents, and subsidies for those who've lost their jobs or have been made to take unpaid leave.



Meanwhile, representatives from several industry groups have welcomed the anti-epidemic package.



Liberal Party lawmaker Tommy Cheung, who represents the catering sector, said many restaurants hardly had any customers and the subsidies could be used to pay staff salaries. His party colleague, transport sector lawmaker Frankie Yick, said it would provide relief to those with no cash flow.