Luo Zhiguang expects the unemployment rate to fall below 4% by the end of the year, or the 6th wave in autumn: the negative impact is smaller than that in February and March

The unemployment rate in Hong Kong last fell to 5.1%, finally falling after rising for three consecutive months.

Law Chi-kwong, Secretary for Labour and Welfare, described the figures today (18th) as "slightly better than my estimate." He expects the unemployment rate to fall below 4% by the end of the year. Even if the epidemic rebounds slightly, there is no need to worry too much.

A few days ago, the Legislative Council passed the abolition of the MPF hedging arrangement. Law Chi-kwong described it as "a great relief, which is very important to the long-term Hong Kong economy and retirement protection".

He also emphasized that if hedging is not eliminated, "it can be almost guaranteed that in the next twenty years or so, the tax that everyone has to pay will definitely come from the sheep, and most of it will come from the employer."

The average employer's additional spending after the removal of hedging is only 0.3%, the impact is lower than inflation.

▼Long queue of job seekers at the job fair on June 8▼

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Law Zhiguang said on the RTHK program "Saturday Accountability" today that the latest unemployment rate fell by 0.3 percentage points to 5.1% compared with the previous one. "The bias is that I estimate it is slightly better."

He pointed out that from a numerical point of view, the decline in May was quite high, and the gap between May and February was 0.9 percentage points.

Will the recent rebound of the epidemic in Hong Kong affect the future unemployment rate?

Luo Zhiguang bluntly stated that he has confidence in the current domestic economic situation, but stressed that there are still many variables, including inflation, geopolitics and other factors.

In terms of the epidemic, he pointed out that because the fifth wave of the epidemic in Hong Kong peaked in March, and the protective barrier gradually weakened in three months, he believed that the risk of a sixth wave in autumn would be higher.

However, he emphasized that "the fifth wave of the epidemic has learned a great lesson, and the government's preparations for the sixth wave will be much better."

Secretary for Labour and Welfare Law Chi-kwong (file photo)

The Legislative Council passed the abolition of the MPF hedging arrangement. Law Chi-kwong said that "the slogan has been for more than twenty years", and serious discussions will begin in 2015.

He emphasized that those who were fighting for the cancellation also underestimated the complexity of the problem, and described the work as quite challenging. "Many people may not know what is called long service payment and severance payment. It only takes two years to draft legislation."

He also admitted that he felt relieved after the completion, and believed that it was very important to the long-term Hong Kong economy and retirement protection.

He also expects the removal of MPF hedging to play a role until 2045, as 2040 to 2050 will be the peak age of aging.

In the program, SME employers questioned the government's promotion of MPF in 2000, saying that employers' contributions could be used as long service payment and severance payment.

Law Chi-kwong emphasized that MPF has always been used for retirement protection, and voluntary contributions can still be used for hedging severance payments and other purposes.

In terms of unemployment protection, Law said that there are severance payments and long service payments in Hong Kong. He described the protection for workers as being at the upper end in developed regions.

He also believes that severance payment and long service payment are one-off amounts, not insurance systems. If the insurance system is used, it may delay the re-employment of the unemployed.

In terms of labor force, Luo Zhiguang pointed out that according to the trend analysis, the employment population increased in May, mainly because 7,000 more foreign domestic helpers will come to Hong Kong, which can also allow those who used to take care of children or the elderly at home to return to work, and a small number of school leavers Students enter the labor market.

However, he stressed that last year and the same period of the previous year, "I could not see an increase in the labor force, but this year, I saw it, and the effect of ensuring employment is obvious."

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