Hong Kong’s Unemployment Rate Hits Two-Year High

News Summary

Hong Kong’s unemployment rate has risen to 3.5%, marking the highest level in two years and raising concerns about the local economy. With tens of thousands out of work, experts suggest that improvements are only likely with economic recovery. In response, the government has launched the Technical Professional List to attract non-degree professionals for critical sectors facing labor shortages. However, union leaders warn it may threaten local job security. With significant workforce shortfalls projected across various industries, employers are shifting hiring practices to attract local talent amid an aging workforce challenge.

Hong Kong’s Unemployment Rate Reaches Two-Year High

Hong Kong’s unemployment rate has surged to 3.5%, marking the highest level seen in two years. This rise in unemployment has raised significant discussions across various sectors regarding the ongoing challenges in the labor market. Despite this increase, experts still consider the current unemployment rate relatively low compared to global standards.

Current Economic Forecast and Job Market Dynamics

The increases in unemployment come as tens of thousands of individuals find themselves out of work. Experts predict this rate is unlikely to decrease unless there is an improvement in the wider macroeconomic environment. The construction industry, among others, faces pressures from an aging workforce and shifting demands due to demographic changes.

The introduction of the Technical Professional List (TPL) aimed at attracting non-degree professionals into eight key trades is one approach being discussed to address severe manpower shortages in Hong Kong. However, the timing of this initiative raises concerns about its impact on local job security. Labor unions are worried that this list could undermine employment opportunities for local workers.

Key Trades in Demand

As of June 30, the TPL includes positions in high-demand sectors such as:

• Industrialization technicians
• Nurses
• Aircraft maintenance technicians
• Marine services technicians
• IT technicians
• Elevator/escalator technicians
• Building Information Modeling coordinators
• Electrical technicians

Particularly in the aviation sector, there is a forecasted shortfall of between 18,000 to 23,000 workers by 2028. Industry professionals recognize that relying solely on local candidates may not be feasible and that bringing in qualified non-local talent might be necessary to fill these critical gaps in the workforce.

Training and Development Initiatives

To counteract these labor shortages, companies such as Hong Kong Aircraft Engineering Co. are collaborating with vocational training organizations to cultivate local talent. These partnerships extend to various technical colleges and training institutions in mainland China, aiming to enhance the skills of prospective job candidates.

Employers are currently increasing their investments in staff acquisition, shifting the balance of power toward job seekers. In many instances, local candidates are preferred, even if this requires further investment in training and development. In the wake of the COVID-19 pandemic and the loss of more than 1,400 pilots at Cathay Pacific, the airline is intensifying efforts to attract and develop local pilot talent through enhanced training programs.

Sector-Specific Workforce Challenges

The construction industry in Hong Kong grapples with an aging workforce, with over 40% of its labor force aged over 50. Additionally, as Hong Kong’s population ages, the demand for medical personnel is expected to steadily increase. Significant developments like the reopening of Hong Kong International Airport’s Terminal 2 and projects such as Skytopia will lead to new job opportunities, particularly in sectors requiring maintenance and repair skills.

Bridging Gaps and Opportunities

Employers, facing severe talent shortages, are increasingly willing to consider candidates who may lack complete qualifications. This flexibility is essential to bridging the skills gap in the labor market. Union leaders can play a crucial role in connecting employers with local talent, ensuring that these gaps are filled efficiently.

Bridging programs for technical professionals can also help individuals with the right skills remain in Hong Kong while meeting the needs of the market. By fostering coordinated efforts among various stakeholders, it is possible to help unemployed individuals transition into roles that fill the critical gaps identified in the TPL sectors.

Finally, an open-minded approach to cross-sectoral opportunities may provide significant benefits for job seekers and those considering a change in their career paths. This adaptability can pave the way for a more resilient workforce in Hong Kong as the economy continues to evolve.

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Additional Resources

• China Daily Asia
• Wikipedia: Economy of Hong Kong
• China Daily Asia – Job Shortages
• Google Search: Hong Kong unemployment rate
• China Daily Asia – Labor Market Trends