Hong Kong’s Unemployment Rate Hits Two-Year High

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Skyline of Hong Kong depicting economic activity and job market challenges.

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 Rises to Two-Year High of 3.5%

Hong Kong is grappling with a surge in its unemployment rate, which has now reached 3.5%, marking the highest level seen in two years. While this increase may raise eyebrows, it still remains within the realm of what many would consider a low unemployment rate. This uptick has resulted in tens of thousands of people finding themselves jobless, as experts warn that the unemployment rate is unlikely to drop until conditions in the broader economy stabilize.

Debate Surrounds the Technical Professional List

In response to the labor shortages faced by various sectors, the government has introduced the Technical Professional List (TPL). This initiative is designed to attract non-degree professionals across eight critical trades that are experiencing severe manpower shortages. However, the timing of this introduction has sparked a debate regarding its public perception. Union leaders have expressed concerns that the TPL may inadvertently jeopardize local job security by promoting the hiring of nonlocal professionals.

Specific Trades Included in the TPL

As of June 30, 2023, the TPL includes a variety of technical roles that employers are allowed to recruit nonlocal talent for, which includes:

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

Projected Workforce Shortages

The aviation sector in particular is facing a significant workforce challenge, with projections indicating a shortfall of approximately 18,000 to 23,000 workers between now and 2028. Airport operators have acknowledged that it may not be feasible to solely rely on local candidates to fill these vacancies.

In light of this situation, companies like Hong Kong Aircraft Engineering Co. are taking proactive measures to cultivate local talent by partnering with the Vocational Training Council. This partnership is aimed at equipping potential workers with the necessary skills, and it also includes collaborations with technical colleges and training schools in mainland China to create a larger pool of qualified candidates.

Employers Adapt to Talent Shortage

In response to the prevailing talent shortage, many employers are making significant investments in staff acquisition. This shift is resulting in a power balance that now favors job seekers, leading to a scenario where employers are more inclined to hire local candidates, even if it requires additional training.

For example, Cathay Pacific is actively searching for local pilots after losing over 1,400 of them during the COVID-19 pandemic. The airline is enhancing its pilot training programs to develop homegrown talent that can fill its ranks.

Challenges in the Construction and Medical Sectors

The construction industry is also grappling with an aging workforce, with over 40% of its workers over the age of 50. Meanwhile, the demand for medical professionals is set to rise due to Hong Kong’s advancing demographics, with an aging population requiring more healthcare services.

Recent initiatives, such as the reopening of Hong Kong International Airport’s Terminal 2 and the development of projects like Skytopia, are expected to create new job opportunities, particularly in technical roles like elevator and escalator maintenance.

New Pathways for Job Seekers

As companies grapple with the lack of fully qualified candidates, many are increasingly open to considering applicants who may not meet all the specified qualifications. This opens a window of opportunity for potential workers, especially those looking to pivot into these in-demand fields.

Union leaders could play a pivotal role in connecting unemployed individuals with available job openings in the sectors designated by the TPL. Bridging programs aimed at technical professionals could also assist those who possess relevant skills in remaining competitive within the job market.

In conclusion, coordinated efforts from all stakeholders could enable unemployed individuals to fill critical manpower gaps in TPL sectors. An open-minded approach toward cross-sector opportunities is likely to benefit both job seekers and those looking to change careers in Hong Kong’s evolving economic landscape.

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Additional Resources

Article Sponsored by:

CMiC Global

CMIC Global Logo

Since 1974, CMiC has been a global leader in enterprise software for the construction industry. Headquartered in Toronto, Canada, CMiC delivers a fully integrated platform that streamlines project management, financials, and field operations.

With a focus on innovation and customer success, CMiC empowers construction firms to enhance efficiency, improve collaboration, and make data-driven decisions. Trusted by industry leaders worldwide, CMiC continues to shape the future of construction technology.

Read More About CMiC: 

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