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Written by: Huang Weilun
2020-09-18 09:29
Last update date: 2020-09-18 09:30
The government announced the latest unemployment rate yesterday (17th). The unemployment rate remained at 6.1% from June to August, the same as the previous period. However, the number of unemployed persons rose to 248,000, an increase of approximately 5,800 from the previous period.
The underemployment rate rose by 0.3% to 3.8%.
Liu Dabang, the permanent honorary chairman of the Federation of Small and Medium Enterprises, and Wu Miner, the chairman of the Trade Union Union, also stated on the Hong Kong and Taiwan program this morning (18) that the actual unemployment situation should be worse than the data. Liu believes that it may rise to 6.3% next time it is announced.
Liu also said that under the Employment Guarantee Plan, some employees are still required to take unpaid leave even though they have not been dismissed. As a result, the underemployment rate has risen and criticized the plan for many loopholes.
This morning, the two were interviewed by the Hong Kong and Taiwan program "Millennium".
Liu Dabang said that the actual unemployment situation should be worse than 6.1%.
He explained that in June, the epidemic slowed down, more premises reopened, and employment conditions were better. It is expected that when the data for July to September is released, it may rise by 0.1% to 0.2%.
Regarding the unemployment rate of individual industries, Liu Dabang was surprised that the construction industry was still as high as 11.1%, because many projects were still going on, but because the public did not want to go out, interior decoration did decrease.
As for the catering industry, he said that if the epidemic does not worsen, he believes that the unemployment rate will stabilize. "We must stick to it, and stop working in some cases."
Underemployment rate rises due to unpaid leave or half-paid employees under the Employment Guarantee Program
As for the underemployment rate, Liu Dabang said that under the Employment Guarantee Program, although some employees have not been dismissed, they still need to take unpaid leave or only have half pay. Therefore, the underemployment rate has increased. He believes that an increase of 0.3% is normal.
He criticized that there are loopholes in the job protection plan and the penalties are easy. "Many customers apply first, but if they don't want to, they will fire people."
He believes that employers who violate the rules can no longer apply for the employment insurance plan.
Wu Miner pointed out that 80% of employees' requests for help were asked to take unpaid leave, and the other 20% were layoffs.
She continued that the plan’s penalty is only to return the subsidy to the government, but in fact it does not increase the employer’s cost and lacks deterrence.
She called on the government to set up unemployment assistance funds to directly assist employees.
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