In the wake of news on Thursday that Hong Kong's jobless rate in October-December 2001 jumped 6.1 per cent against the same period last year, Financial Secretary Antony Leung called on people not to lose confidence.
Pointing to evidence suggesting that the economy was beginning to bottom out, Leung said: "The economic outlook this year is not that pessimistic since the external economy is picking up as is domestic consumption."
Unemployment in September-November 2001 rose 5.8 per cent. Based on the rising trend, it is feared that Hong Kong could again reach the historic 6.4 per cent rate of unemployment recorded in the wake of the financial turmoil in 1998.
Fearing that more people will be laid off before the Lunar New Year, Leung and union leaders urged companies not to resort to massive sackings.
After attending a public function Thursday, Leung said the unemployment problem is getting more and more severe. And as this is a lagging index, the jobless rate will continue to go up for a certain period of time even though the economy may begin to bottom out.
"I greatly hope that if enterprises have lay-off plans at this moment, they may consider other options to avoid large-scale redundancy," he pleaded.
Elizabeth Tang, director of the Confederation of Trade Unions, and Executive Councilor Tam Yiu-chung also called on better-off or profit-making companies not to aggravate the situation by firing more people.
Tam noted that the "slimming" trend is spreading fast across the board rather than just one or two sectors, blaming some companies for firing their employees and then recruiting new faces at lower wages.
"I hope the government will speed up the launch of infrastructure projects and creation of new jobs while employees should endeavor towards innovation and added-values," he said.
But Chan Wing-kee, president of the Chinese Manufacturers' Association, said he was not aware of large-scale redundancy drives by member companies although a few members may have undergone minor lay-off exercises.
(China Daily January 18, 2002)
