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Written by: Huang Yongyu
2020-06-14 11:02
Last update date: 2020-06-14 11:05The unemployment rate in Hong Kong continues to rise. The Secretary for Labour and Welfare, Luo Zhiguang, published a blog today (14th), mentioning that to consider whether unemployment insurance should be established, it is necessary to consider the adjustment of severance payment and the long-term service payment. Cancel the "hedging" arrangement of MPF and severance payment or long service payment. He also emphasized that although there is still room for improvement in the existing unemployment protection system in Hong Kong, there are many advantages over other regions.
Luo Zhiguang pointed out that the biggest advantage of unemployment insurance is that it does not require economic review. Whether it is employer or employee contributions, employees can take insurance money for granted. Employers also have less "guilt" for dismissing employees. For employees, after receiving unemployment insurance, they do not need to rush to work.
However, he believes that the cause of "moral hazard" at the same time is that the sharing of risks brings down the responsibility. He emphasized that the pros and cons of unemployment insurance, in addition to considering its own design, should also consider the relationship with other relevant social systems, but also must consider the overall economy, the labor market ecology, employers and employees in the employment relationship changes in employment.
The Secretary for Labour and Welfare, Luo Zhiguang, mentioned that if we want to consider whether unemployment insurance should be established, we must also consider the long-term service payment. (Profile picture)
Luo Zhiguang also said that since unemployment protection in Hong Kong mainly relies on a lump sum severance payment or long service payment, rather than being paid every week or month, the unemployed have no "incentives" to work immediately, which is also the long-term unemployment rate. ; During the economic recovery period, the unemployment rate fell faster; but during the economic contraction period, the unemployment rate rose one of the main reasons.
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