Policy Support

TACKLING UNEMPLOYMENT

Severe Acute Respiratory Syndrome: Employment Relief Measures

The outbreak of SARS in Hong Kong in March this year has brought about a slowdown in our economic activities. Businesses in many sectors have been hard hit. There have been a number of business closures and suspension, and employees affected have been laid off or are taking no-pay leave. Reflecting fuller impact of SARS, the unemployment and underemployment rates for March to May 2003 stood at 8.3% and 3.8% respectively. With a new batch of fresh graduates and school leavers entering the labour force during the summer months, the manpower resource balance is likely to loosen further, putting upward pressure on both the unemployment and underemployment rates in the near term.

To help the community tide over the difficulties resulting from SARS and to revive the economy after the disease is brought under control, the Chief Executive announced a series of measures costing about $11.8 billion in April 2003. Within the package were five job creation and training initiatives costing $432 million. Together, they would create some 11,500 temporary jobs and 10,000 short-term training places.

To further relieve the impact of SARS on the labour market, the Chief Executive announced on 15 June 2003 an enhanced package of employment and training initiatives. The new package costs $715 million and will create over 32,000 additional short-term employment and training opportunities. Of these, 13,000 are training places (6,000 for the young and 7,000 for others); and 19,050 jobs (8,350 for the young and 10,700 for others). Most of the short-term jobs will last for six months. A standard salary of $4,000 will be provided for all the jobs for the young.

The new temporary jobs will cover a wide spectrum, including jobs to enhance environmental hygiene; promote culture, arts, recreation and sports activities as well as community and personal hygiene; foster community building and improve the ecological environment. Most of the jobs are suitable for people with low skills and low education attainment.

Through collaboration with Non-Government Organizations and community organizations, thee new programmes will not only create jobs but also help foster social cohesion and community building. The Government's effort to create employment and training opportunities bears testimony to its commitment to easing rising unemployment and making the best of the current adversity to re-equip and upgrade our workforce and to enhance the employability of our young people.

More information on the employment-cum-training packages can be found in papers tabled to the Panel of Manpower of the Legislative Council on 6 May 2003 and 19 June 2003.