Following is a question by the Hon Kingsley Wong and a written reply by the Secretary for Labour and Welfare, Mr Chris Sun, in the Legislative Council today (April 22):
 
Question:
  
     Regarding the employment and poverty situation in Hong Kong, will the Government inform this Council:
 
(1) as, according to data from the Census and Statistics Department, the median monthly household income (median income) (excluding foreign domestic helpers) rose from $16,700 to $24,500 over the 10-year period between 2006 and 2015, an increase of over 45 per cent, but the median income rose only from $25,000 to $30,000 over the last decade (between 2016 and 2025), with the rate of increase falling to 20 per cent; whether the authorities have examined the reasons for this decline in the rate of increase, such as easing wage growth, loss of positions at middle and senior levels, reduction in the average household size, or decline in the labour force participation rate; if so, of the details; 

(2) as it is learnt that the number of economically inactive households with non-elderly members has more than doubled over the past 20-odd years, whether the authorities have examined the reasons for this significant increase; if so, of the details; 

(3) as it is learnt that among the economically inactive households with non-elderly members, some are currently receiving social welfare payments and that these individuals are of working age and not carers, of the targeted new measures the authorities have in place to encourage them to enter the labour market, thereby improving their household's financial situation in the long term and helping them to become self-reliant; 

(4) as it is learnt that labour force participation rates in Kwun Tong, Kwai Tsing and Wong Tai Sin are generally lower (particularly among women), and that the median monthly household income is also at a relatively low level, the reason for this may include a higher proportion of elderly residents in these districts and a shortage of female-friendly job opportunities; whether the authorities will adopt measures accordingly to enhance their understanding of local conditions, such as strengthening the role of District Councils in addressing employment and poverty issues, in order to formulate district-based policies that are more effective in supporting employment and alleviating poverty; and 

(5) given that there are views that the report published in 2023 on Household Income Distribution in Hong Kong only disclosed the Gini Coefficient (GC) based on post-tax post-social transfer household income and thus failed to fully reflect the situation regarding wealth dispersion; whether the authorities will publish more GC calculated using different methodologies in future reports; if so, of the details; if not, the reasons for that?

Reply:
 
President,
 
     In consultation with the Census and Statistics Department (C&SD), the reply to the Member's question is provided as follows:

(1) According to the statistics from the C&SD, the cumulative increase in the median monthly employment earnings of employed persons (excluding foreign domestic helpers) was approximately 39 per cent between 2016 and 2025, which was broadly comparable to the cumulative increase of about 43 per cent recorded in the preceding decade (2006-2015). This reflected that the wage growth in the local labour market remained steady over the last 20 years, with no obvious sign of a slowdown.
 
     The increase in the median monthly household income (excluding foreign domestic helpers) from 2016 to 2025 was lower than that in the preceding decade (2006-2015). The statistics relating to changes in demographic structure showed that during 2016 to 2025, the number of elderly households increased by 59.7 per cent from 320 000 households to 510 000 households (higher than the growth rate of 51.1 per cent in the preceding decade). Among which, the number of economically inactive elderly households also grew by 49.6 per cent from 290 000 households to 430 000 households (higher than the growth rate of 45.4 per cent in the preceding decade). In addition, the average household size (excluding foreign domestic helpers) decreased continuously in the past 20 years respectively from 2.9 persons in 2006 to 2.7 persons in 2015 and from 2.7 persons in 2016 to 2.5 persons in 2025. Generally speaking, elderly households have lower incomes than non-elderly households, and households with fewer members also tend to have lower household incomes. The growing proportion of these two types of households among all domestic households has exerted a downward pressure on the growth of the overall median household income.

(2) The number of economically inactive non-elderly households (i.e. household with at least one household member aged below 65) increased from 150 000 households in 2006 to 240 000 households in 2025, representing an increase of around 90 000 households. Among which, the number of households with all members being retired persons increased by about 39 000 (from 33 000 in 2006 to 72 000 in 2025), partly involving non-elderly persons choosing to retire early before the age of 65. The number of households with all members being students also increased by about 15 000 households (from 2 000 in 2006 to 17 000 in 2025), partly involving non-local students coming to Hong Kong for study. The increase in these two types of households accounted for 60 per cent of the total increase in economically inactive non-elderly households during the period.

(3) The Social Welfare Department has commissioned non-governmental organisations (the operators) to implement the Support Programme for the Unemployed (SPU) on a pilot basis for two years starting from October 2025. All unemployed able-bodied Comprehensive Social Security Assistance (CSSA) recipients aged 15 to 59 are mandated to participate in the SPU and take up unpaid work arranged by the operators once a week and for at least one hour on each occasion, until they have secured gainful employment or returned to mainstream education. The SPU helps participants connect with the community, develop work habits and accumulate work experiences through unpaid work, thereby enhancing their employability, shifting their reliance on CSSA towards self-reliance in the long term. The SPU has been operating smoothly since its launch.
 
     Furthermore, the Government has been supporting lower-income working households who are not receiving CSSA through the Working Family Allowance (WFA) Scheme, with a view to promoting full-time employment and self-reliance, as well as rewarding hard work. The WFA Scheme also provides child allowance to households with eligible children. The Government reviews the WFA Scheme and enhances its support from time to time. The rates of the household and child allowances under the WFA Scheme have been increased by 15 per cent across the board with effect from April 2024 to further alleviate the burden of lower-income working families and incentivise more families to join the labour market. In addition, the 2025 Policy Address announced the provision of time-limited cash incentives for households leaving the CSSA Scheme and joining the WFA Scheme on a pilot basis, with a view to encouraging more people with working capability to leave the CSSA Scheme and promoting self-reliance through continuous employment. The Government is preparing to launch the initiative in the second half of this year.

(4) The current-term Government has adopted a targeted poverty alleviation strategy, directing resources to those most in need. It seeks to empower those who are capable of self-help, enabling them to become self-reliant and improve their living conditions. In addition, it continues to address gaps in the existing support system by providing a safety net for those who are unable to help themselves. Based on territory-wide statistical data, the Government has identified target groups for targeted poverty alleviation, including single-parent households. From the employment perspective, compared with overall households with children, single-parent households have a lower employment rate, while a higher proportion of them are engaged in lower-skilled or part-time work. Most single parents are women, whose labour force participation rate is markedly lower than that of women of the same age group overall, mainly because they are occupied with household duties or unpaid caregiving responsibilities and are therefore unable to participate in the labour force.
 
     In response to this situation, the Government launched the School-based After School Care Service Scheme (the Service Scheme) in the 2023/24 school year, allowing primary students in need to stay after school for care and learning support in a safe and familiar environment, thereby easing the pressure on parents/guardians in caring for and supervising their children. At the same time, it gives parents/guardians who otherwise need to look after their children in after-school hours the option of taking up employment and improving their livelihood. Both single-parent and dual-income families stand to benefit. The Government has further expanded the Service Scheme in 2025/26 school year by removing the cap on the number of places, thereby extending support to more primary students and parents in need. As at February 2026, 205 primary schools have joined the Service Scheme, providing over 10 000 service places, many of which are in Kwun Tong, Kwai Tsing and Wong Tai Sin districts.
 
     In addition, the Labour Department (LD) provides diversified employment services and implements various employment programmes to assist job seekers of different backgrounds to secure employment. The LD operates 10 job centres across the territory, providing personalised employment advisory and job referral services to job seekers, and regularly organising job fairs to help job seekers in the respective districts secure employment.
 
     To promote the employment of the middle-aged and older persons, the LD launched the three-year Re-employment Allowance Pilot Scheme (REA Scheme) in July 2024 to encourage persons aged 40 or above who have not been in paid work for three consecutive months or more to join the employment market. The LD also implements the Employment Programme for the Elderly and Middle-aged (EPEM) to encourage employers to hire persons aged 40 or above and provide them with on-the-job training. Both the REA Scheme and EPEM cover full-time and part-time jobs. The response to the REA Scheme is very favourable, with over 72 000 participants and 43 000 placements recorded as at March 2026. Of which, about 60 per cent of participants and placements involve women, showing the REA Scheme's effectiveness in helping women secure employment.
 
     At present, LD officers will upon invitation participate in or attend committee meetings of individual District Councils to listen to the views of local communities on labour issues. The Government will continue to review policies related to poverty alleviation and employment, collect the views from local communities and stakeholders, and adjust relevant measures in a timely manner having regard to the economic and labour market situations of Hong Kong.

(5) The C&SD analyses household income distribution and compiles the Gini Coefficient (GC) using data collected from population censuses/by-censuses conducted once every five years and relevant administrative data. Post-tax and post-social transfer (including such in-kind benefits as education, housing and medical benefits, as well as various relief measures introduced from time to time) household income reflects the economic well-being actually experienced by households. Therefore, GC calculated based on such data can most appropriately reflect the household income distribution.

Ends/Wednesday, April 22, 2026
Issued at HKT 14:38

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