Hong Kong Swept by National Security Law, Unemployment Rate Worst in 16 Years

[Asia Economy Reporter Yujin Cho] The employment situation has fallen to its worst level in 16 years due to the combined effects of the enforcement of the National Security Law and the economic downturn caused by COVID-19.

On the 18th (local time), Bloomberg reported that as more companies leave Hong Kong following the enforcement of the National Security Law, Hong Kong's unemployment rate rose from 6.6% between November and January to 7%. This is the highest level in 16 years since April 2004.

The news agency analyzed that the 'Hong Kong exodus' trend is acting as a negative factor in the labor market. Since the enforcement of the National Security Law, the so-called 'Hexit'?the departure of Western capital and talent that had been based in Hong Kong?has intensified, leading to a reduction in jobs.

As Hong Kong's status as a financial hub in Southeast Asia has diminished, a wave of departures from Hong Kong continues, especially among financial service companies that have lost their appeal.

Bloomberg also reported that consumer spending, a core component of Hong Kong's economy, began to decline around the time of political protests and has worsened due to prolonged social distancing and movement restrictions caused by COVID-19.

Even if the spread of COVID-19 subsides, the labor market is expected to face short-term pressure until economic activities fully return to normal.

The governments of the United Kingdom and Canada are significantly expanding immigration channels to welcome immigrants leaving Hong Kong. The UK government amended immigration laws to protect Hong Kong residents, citing violations of the 'UK-China Joint Declaration' following the enforcement of the National Security Law, while Canada launched a three-year open work visa program on the 8th for Hong Kong residents with a university degree or higher.

This content was produced with the assistance of AI translation services.