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Written by: Commentary Editing Room
2020-12-04 06:45
Last update date: 2020-12-04 06:45
The fourth wave of the new crown pneumonia epidemic hit, the economic recovery is indefinite, and some companies have announced layoffs after the end of the government's employment guarantee plan.
The Director of the Bureau of Labor and Welfare, Luo Zhiguang, recently responded to the arrival of the winter of employment, but it reflected that the government’s anti-cold measures dragged on almost zero and had no intention of supporting the unemployed and underemployed.
It is not easy for Hong Kong people this winter.
The epidemic has become more severe again, and the government has decided not to launch the third phase of the employment guarantee plan. The company's original hope of relying on Christmas and New Year festivals to boost business can be said to have failed.
All walks of life announced layoffs and pay cuts, reducing costs and even leaving the market altogether.
The first thing to say is that although the two-round employment guarantee scheme may slow down the rise of the unemployed and underemployed, the scheme has many loopholes and fails to target enterprises in need. Some of them use subsidies to help themselves, nor do they directly subsidize employees. Guaranteed employment becomes a guaranteed employer.
But with the fourth wave of the epidemic, the government's response strategy should not be simply announcing that it will not push the third phase of subsidies.
The unemployment rate in the third quarter of Hong Kong was adjusted to 6.4%. A total of 259,800 people were unemployed. Among them, the most serious situation was between 20 and 29 years old.
(Data Picture/Photo by Zheng Zifeng)
Bailout measures are exaggerated
The government has data on employment and consumption markets, and it is well aware of how widespread unemployment impacts society. It should have two preparations, one to assist them in reemployment, and the other to vigorously support the immediate livelihood of the unemployed and underemployed, with a clear schedule.
The response of the Director of the Bureau of Labor and Welfare Luo Zhiguang for two consecutive days was disappointing.
In response to a question from the Legislative Council on Wednesday (2nd), he reiterated that the government is opening 29,000 temporary jobs, continuing to recruit 10,000 civil servants and establishing more retraining courses.
In terms of subsistence, he reiterated that relaxing the unemployment CSSA application is a targeted safety net.
In the radio program on Thursday (3rd), he pointed out that he would rather create jobs than send money, believing that creating jobs is creating hope for the citizens.
Encouraging work is the right direction, but Luo Zhiguang ignores the two difficulties in finding jobs. One is that official positions and places are in vain, and the other is that he overestimates the absorption of the private market.
Even if a total of 39,000 posts in the above two categories are recruited and 20,000 additional retraining places are taken into account, the figures can only absorb less than a quarter of the current 260,000 unemployed people.
Moreover, private enterprises will shrink more and expand less, and they will certainly not be able to absorb the remaining unemployed.
What's more, people and job vacancies will not match up perfectly, and the unemployed may have to wait a while before they can find their desired job.
As for the Youth Employment Program in the Greater Bay Area, local recycling of waste paper and pulp production, etc., it will definitely take many administrative procedures to implement.
How can the distant waters save the nearby fire? Hong Kong people will have run out of savings when they wait for the job advertisement.
As for the relaxation of the unemployment CSSA eligibility, the help to people's livelihood is really limited.
Even if the government doubles the asset limit of a healthy four-person family in response to the epidemic, the amount is only 176,000 yuan, and applicants are very likely to exceed the limit.
Luo Zhiguang described that the total number of cases increased by nearly 55% in the past 12 months is equivalent to an effective safety net. Rather, Hong Kong has a population of 30 to tens of thousands of people who are almost impoverished.
The Hong Kong Association of Community Organizations urged the government to set up unemployment assistance to improve the life of the grassroots.
Relief for the unemployed, flexibly assist enterprises
On the one hand, the authorities should introduce low-threshold unemployment benefits. On the other hand, even if they take care of enterprises, they can also introduce time-limited part-time work allowances to subsidize employees while reducing corporate expenses.
Take France as an example. At the beginning of the year, employers can pay employees with a 30% discount on the part of their salaries that reduce their working hours. The payments are all subsidized by the government.
The measures are adjusted day by day. Starting in June, employers will have to bear 15% of it. By November, the proportion will increase to 24%. Industries such as tourism that have been hit hard by the epidemic will remain unchanged.
The Organization for Economic Cooperation and Development (OECD) analyzed that this can control the cost of subsidies and encourage employees to work more.
Furthermore, subsidies can help distinguish companies that are still able to continue operating under adversity. On the contrary, if the company cannot pay even a little more salary, the business is simply in dire straits, and there is no need to force support.
Policy Address 2020｜Introduction of 2,000 places in the Greater Bay Area Youth Employment Program
The impact of unemployment on individuals, families, society, and the economy cannot be overstated. The government must find ways to ensure employment and livelihoods, and it must be accurate and timely.
If Luo Zhiguang is convinced that the pulp mill can save jobs, he will ask him and the Environment Bureau to jointly announce the construction time of the factory, recruit more employees, and give the unemployed real hope.
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