AFTER months of protests and the onset of a recession, Hong Kong’s resilient labor market is starting to crack.

Retailers, restaurants and hotels are cutting wages and hours or letting staff go just to survive. An end to the city’s record-low unemployment level is widely anticipated if no solution to the five months of turmoil can be found.

Nestor Manuel, 21, is among those affected. He has recently taken a new job as a floor supervisor at Mint Supper Club in Hong Kong’s nightlife district after having to shift roles multiple times in recent months.

“I’ve had to switch two times in the past six months during this protest because companies couldn’t afford me anymore,” he said. “It’s sad to see the industry I love dying.”

Manuel’s previous employer cut salaries at first to hang onto employees, yet soon had to take more drastic steps.

While Hong Kong’s overall unemployment rate has remained at 2.9 percent since July, close to a record low, that strength is waning. The October jobless figure rose to 3.1 percent, according to data released yesterday.

Meanwhile, the rate in the consumption and tourism-related sector, which includes retail, accommodation and food services, is showing greater signs of strain. It rose to a two-year high of 4.9 percent for the July-to-September period.

“The labor indicators may remain stable for some time with the alternative measures like unpaid leave or so, but it won’t remain stable for long. The labor market will feel growing pain in the following months,” said Qian Wan, an analyst with Bloomberg Economics.

Things were even worse in the food and beverage sector, where unemployment hit a six-year high of 6 percent.

(SD-Agencies)