More Hongkongers are looking for jobs now than at the start of the year. Photo: ShutterstockDeep Dive delves into hot issues in Hong Kong and mainland China. Our easy-to-read articles provide context to grasp what’s happening, while our questions help you craft informed responses. Check sample answers at the end of the page.
Unemployment rises as income drops in Hong Kong
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Survey reveals that Hongkongers earned HK$300 less per month in the second quarter of the year compared to the first three months
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City has seen many businesses close thanks to slow economic growth
A new survey has found that Hongkongers earned less in the second quarter of this year compared to the previous three months. Meanwhile, the number of unemployed and underemployed people also rose.
The “Quarterly Report on General Household Survey” was published in late August by the Census and Statistics Department. It showed that the median monthly income for residents fell by HK$300 (US$38) from HK$21,400 in the first quarter to HK$21,100 in the second. These figures excluded foreign domestic helpers.
While the labour force grew by 8,900 people to 3,474,400 over the same period, 114,700 individuals were unemployed in the second quarter. This was an increase of 3,000 from the previous three months.
The construction, retail, accommodation and food services sectors were hit the hardest, with their unemployment rate higher than the average rate of 3 per cent.
The number of underemployed residents also rose by 4,500, reaching 44,500 during the same period.
On the same day, UK-based consultancy WTW released a study that said nearly 40 per cent of Hong Kong companies had a smaller payroll budget for the financial year ending in March than they did last year. This is a jump from the 21 per cent reported a year ago.
Another survey conducted in May by the Hong Kong Small and Medium Enterprises Association and Junior Chamber International Hong Kong showed that 70 per cent of such companies said their business had fallen below pre-pandemic levels.
Hong Kong has seen many shops, restaurants, and cinemas close because of the sluggish economy.
Last month, the Hong Kong Monetary Authority set up a new task force to look into small and medium companies that were having trouble with banks over their loan repayments.
Chief Executive John Lee Ka-chiu said it was normal for new businesses to replace old ones. He added that the economy was expected to improve next year.
Question prompts
1. How did the median monthly income for Hongkongers change from the first quarter to the second quarter of this year, according to News?
2. What types of businesses in Hong Kong saw the biggest rise in unemployment rates, as reported in the survey?
3. Using News, Chart and Glossary, explain THREE problems that workers in Hong Kong are facing because of the city’s slow economy.
Chart
Question prompts
1. List TWO observations from the chart about the state of Hong Kong households from the first quarter to the second quarter of 2024.
2. How do these figures reflect Hong Kong’s “sluggish economy”? Explain using News and Glossary.
Glossary
median monthly income: The middle figure when numbers are arranged from lowest to highest. In this case, half of the reported incomes are higher, and half are lower than this value.
underemployed: when a person has a job but does not have enough work. They often do not get to use their skills and education, work part-time but would like to work full-time, and don’t earn much money.
payroll budget: The amount of money a company has to pay its employees’ salaries for a specific period, usually a year.
sluggish economy: The word economy describes how a country or place is doing in terms of making and selling goods and how much money it has. A sluggish economy is growing very slowly. Unemployment may be higher, and people are spending less money.
Answers
News:
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The median monthly income in the second quarter of this year dropped by HK$300 compared to the first quarter, going down from HK$21,400 to HK$21,100.
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The construction, retail, accommodation and food services sectors were the hardest hit. Because of Hong Kong’s slow economy, many people have lost their jobs, some people are not making enough money to make ends meet and many business owners have had to close their shops.
Chart:
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The underemployment rate edged up from 1.1 per cent in Q1 2024 to 1.2 per cent in Q2 2024 / The median monthly household income was HK$29,700 in Q2 2024, HK$300 lower than the first quarter. (accept other reasonable answers)
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Hong Kong has suffered a wave of closures of shops, restaurants and cinemas amid a sluggish economy, and this is reflected in the unemployment rate. The lower median monthly income could be a reflection of businesses that can no longer pay their workers. (accept other reasonable answers)