Road to 5**：Unemployment compensation scheme
【明報專訊】Unemployment rates in Hong Kong remain high. The Hong Kong Council of Social Service has analysed unemployment data from July to September, 2020 and found that about 17% of economically active households have at least one unemployed or underemployed member.
◆News summary
Of the 360,000 families in question, about 34% have incomes below the poverty line. Additionally, only about 5.3% of the unemployed or underemployed receive Comprehensive Social Security Assistance(CSSA), showing that the CSSA cannot protect the unemployed.
As the COVID-19 pandemic persists and unemployment rates continue to rise, multiple political parties have advocated the government's establishment of unemployment compensation schemes, providing cash reliefs for the unemployed. Some lawmakers have voiced their support for the issue of unemployment compensations when general unemployment rates become higher than 4%. Law Chi-Kwong, Secretary of the Labour and Welfare Bureau, once retorted: ''Why issue compensation when it is higher than 4%(unemployment rates) but not when it is 3.99%?'' He maintains that setting a boundary for unemployment or a time limit is an ''unreasonable social policy''.
Source: 5 February 2021, MingPao
■Mock examination question
''The government's establishment of unemployment compensation schemes is the best way to deal with stubbornly high unemployment rates.'' Do you agree?
◆Agree
Direct support for the unemployed
High unemployment rates result in various social problems, such as theft or burglary, which would increase social instability and worsen business conditions. Unemployment compensation schemes provide cash relief to the unemployed, allowing them to buy necessities and preventing the above-mentioned social problems from happening. On the other hand, it is difficult to ensure that subsidized enterprises will not lay off staff if the government allocates funds to enterprises and employers, which may not help alleviate unemployment rates.
Immediate assistance
Some low-income households live a hand-to-mouth existence. Unemployment compensation can provide immediate cash relief to the unemployed, which prevents their unemployment from affecting public health levels and equal education opportunities for children. In contrast, government-provided vocational training would take more time, making it difficult to resolve unemployment-related problems immediately.
◆Disagree
Inefficiency resulting from complicated procedure
Unemployment compensation schemes involve various administrative processes. They are less cost-effective. It would be more cost-effective if the government increases public expenditure and create jobs. This would not only push down unemployment rates but would also be beneficial to the economic environment.
Cash benefits lack long-term effectiveness
Although unemployment compensation can help the unemployed buy necessities, it may result in dependency on immediate cash relief, lack of motivation to re-enter society, or consistent high unemployment rates. On the contrary, establishing vocational training or internship schemes may enhance the abilities of the unemployed. This helps them maintain a positive work ethic, which would help them return to the labour force.
Translated by Odyssey Lang
[通通識 第702期]
