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 Hits Two-Year High
Hong Kong’s unemployment rate has climbed to 3.5%, marking the highest level in two years. This rise reflects a concerning trend as tens of thousands have found themselves out of work. While the current rate might still be regarded as relatively low compared to historical figures, it indicates brewing issues within the local economy. Experts express that significant improvements in the unemployment rate can only be expected once the broader economic climate starts to recover.
Technical Professional List Initiatives
In response to workforce shortages in critical sectors, the government has introduced the Technical Professional List (TPL). This initiative aims to attract non-degree professionals in key trades facing severe manpower shortages. Currently, the TPL covers eight specific roles, including:
- New industrialization technicians
- Nurses
- Aircraft maintenance technicians
- Marine services technicians
- IT technicians
- Elevator/escalator technicians
- Building Information Modeling coordinators
- Electrical technicians
However, the timing of this initiative may be questioned from a public relations perspective. Union leaders have expressed apprehension regarding the TPL’s potential consequences on local job security, fearing that it may lead to increased competition for existing roles.
Projected Workforce Shortfalls
Particularly in the aviation sector, projections indicate a shortfall of 18,000 to 23,000 workers between now and 2028. Airport operators recognize that filling these vacancies may not be feasible solely with local talent. Subsequently, companies like Hong Kong Aircraft Engineering Co. are forging partnerships with educational institutions, such as the Vocational Training Council, to cultivate a local workforce capable of meeting these demands.
In tandem with this, the company is also cooperating with numerous technical colleges and training schools across mainland China to broaden the pool of qualified candidates available for employment. Employers appear to be responding to the current talent shortage by investing heavily in employee acquisition, thus shifting the power balance in favor of prospective employees.
Shifts in Hiring Practices
Employers are increasingly inclined to hire local candidates, even if this necessitates additional investments in training programs. For instance, Cathay Pacific has been actively seeking local talent to replenish its ranks, especially after having lost over 1,400 pilots during the COVID-19 pandemic. The airline is enhancing its pilot training programs to ensure a steady influx of qualified professionals.
The Aging Workforce Challenge
The construction industry is particularly affected by an aging workforce, with more than 40% of its workers aged over 50. This demographic shift raises concerns about future labor availability in a sector that is crucial for driving infrastructure growth. Additionally, with Hong Kong’s population aging, there is an expected rise in demand for medical personnel, which adds further pressure to the already stretched labor market.
Opportunities and Challenges Ahead
The recent reopening of Hong Kong International Airport’s Terminal 2 and ambitious projects such as Skytopia are set to create new job opportunities across various sectors. The demand for elevators and escalators, in particular, will require a greater number of repair and maintenance workers. As a result of these trends, employers have begun to show more flexibility, willing to consider candidates who may not possess all required qualifications due to the severe talent shortages.
Connecting Employers with Local Talent
Union leaders have a vital role to play in facilitating connections between employers and local talent. Bridging programs targeting technical professionals could help retain skilled individuals within Hong Kong while addressing existing manpower gaps in sectors highlighted by the TPL. By increasing collaboration among stakeholders, efforts could be made to effectively match unemployed individuals with available positions in these crucial areas.
Ultimately, fostering an open-minded approach to cross-sectoral opportunities may also prove beneficial for job seekers and those looking for career changes, helping to mitigate the current labor market challenges.
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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
