Monday, February 28, 2011

Hong Kong Trends - Minimum Wage and Unemployment

HK Economic Trends was published on 28 Feb, from the CSD. Page 3 looks at happy figures for unemployment in Hong Kong, said to be the lowest in Hong Kong's recent history.

Watch this space, however, for the minimum wage to have its effect on unemployment. For Oct to Dec 2010, unemployment in "Retail, accommodation and food services" was the highest, over a percentage point more than in other industries, and Hong Kong can expect that trend to continue.

Payrolls increased across the board, and with economists predicting at least 100,000 people out of work (and unfortunately, now perhaps more; the undefined law created the consequence of surprising businesses with greater payments than they imagined with the $28 rate/hour, translating to even higher unemployment forecasts), looks like the unemployment rate in this sector is set to further increase.

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