Saturday, December 6, 2008

Hong Kong to create 250K jobs through infra projects

Hong Kong's government aims to create 250,000 jobs by launching 10 big infrastructure projects in 2009, its financial secretary said on Saturday, in an effort to slow the growing jobless rate in an economic downturn.

"(The) Hong Kong SAR government will facilitate the launch of 10 major infrastructure projects next year, hoping to bring in 250,000 jobs," John Tsang said in a radio programme, adding he had urged all government departments to propose ways of creating more jobs.

He gave no time frame for the 250,000 job target. Tsang had said earlier this week that he expected Hong Kong's economy to worsen in coming few months. The government recently cut its 2008 GDP growth forecast to 3 to 3.5 percent from 4 to 5 percent.

The unemployment rate rose to 3.5 percent in August-October, from 3.4 percent in July-September quarter. The government said the jobless rate was a lagging indicator and had yet to truly reflect the impact of the global financial crisis.

Economists see it topping 4 percent within a few months as Hong Kong is now in recession and as a trading and financial hub is being hit by the global economic downturn. The jobless rate has come down from a record 8.5 percent in the past five years as the economy has rebounded, but it now looks set to rise sharply in the next year as a global economic downturn hurts Hong Kong businesses.

Source: Agencies

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