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Escalating violence starting to hurt jobs

By Dai Kaiyi | chinadaily.com.cn | Updated: 2019-11-19 09:57
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An entrance of the Mong Kok MTR station is set ablaze by rioters on Monday afternoon. [Photo/CHINA DAILY]

Hong Kong's employment market has taken a battering, with the jobless rate hitting a two-year high of 3.1 percent for the three-month period from August to October, and the food-and-beverage service sector dealt an even bigger blow with the number of unemployed reaching 6.1 percent — a six-year high.

The figures are worse than expected, said Linus Yip Sheung-chi, chief strategist at First Shanghai Securities, adding that the fallout has surfaced as the five-plus months of social unrest shows no sign of abating.

The overall employment figure dwindled by about 11,600 to 3,843,800 from August through October — down from 3,855,400 between July and September. During the same period, the labor force declined by about 6,400 — from 3,975,700 to 3,969,300 — according to the Census and Statistics Department.

The number of jobless people surged by about 5,100 — from 120,300 from July through September to 125,400 between August and October.

The number of underemployed also went up by about 4,400, from 41,500 to 45,900, with the underemployment rate rising from 1.0 percent in July-September to 1.2 percent between August and October.

Situation worsening

Yip said he expects the job market to deteriorate as a whole, with more sectors, such as finance and trade, likely to come under pressure as the unrest continues. Catering, retail and tourism have been among the hardest-hit industries, as visitors shunned the renowned "shopping heaven" now plagued by violence.

Secretary for Labour and Welfare Law Chi-kwong warned that the jobless rate will continue to rise as the violence takes a heavy toll on the local economy.

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