Hong Kong’s jobless rate hit a 16-year high in the October-December period as the fourth wave of the COVID-19 outbreak further compounded the labor market situation, official data showed Tuesday.

The seasonally adjusted unemployment rate rose from 6.3 percent in the September-November period to 6.6 percent in the October-December period, the Census and Statistics Department of the Hong Kong Special Administrative Region (HKSAR) government said in a press release.

Meanwhile, the underemployment rate remained unchanged at 3.4 percent, showed the official data.

Law Chi-kwong, secretary for labor and welfare of the HKSAR government, said the unemployment rate in the consumption- and tourism-related sectors, including retail, accommodation and food services, rebounded by 0.5 percentage point to 10.6 percent in the October-December period, and that the situation in the sector of food and beverage services was the most severe, with the jobless rate being up to 13.8 percent.

The unemployment rate in many other sectors also rose, Law said.

Looking ahead, Law predicted that the labor market will remain under notable pressure in the near term as the coronavirus epidemic will continue to weigh on local consumption sentiment and disrupt economic activities.

The ongoing epidemic will dampen the consumption activity during the upcoming traditional peak season, said Chow Man-kong, deputy director of China Economic Research Program of Lingnan University, adding that business incomes will be negatively affected as consumption potential cannot be unleashed.

Wong Kah-woh, president of the Hong Kong Federation of Restaurants & Related Trades, expects about 3,000 restaurants may shut down during March to May if the epidemic continues to rage and social distancing measures maintains.

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