Hong Kong’s labor market has seen its sharpest drop on record, underscoring the territory’s challenges with an aging population and outflow of talent.
The territory’s working population last year fell 94,100, down 2.4 percent, according to data released on Monday by the Hong Kong Census and Statistics Department.
It is the largest decline in the territory’s labor force since the government began keeping records in 1985.
Photo: Bloomberg
Hong Kong is running an uphill battle as the government seeks to kick-start an economy that recorded its third annual contraction in four years. Tens of thousands of people, including lawyers and bankers, left the territory following the National Security Law and strict COVID-19 pandemic curbs.
A labor shortage would affect services for the public and the territory’s competitiveness, Hong Kong Chief Executive John Lee (李家超) said at a daily news conference yesterday.
Lee has made attracting talent a key priority for his administration. In October last year, he started a global talent program that includes a two-year visa plan for high-income workers and top university graduates.
So far, the program has mostly attracted interest from Chinese. Most of the about 10,000 applications are from the mainland, according to local media.
The territory is also competing with Singapore to attract wealth business. The Hong Kong government last month announced that it would cut taxes for family offices.
One of Hong Kong’s biggest hurdles is staffing its tourism sector dented by COVID-19 curbs.
The industry, along with exports, could help the economy grow by an estimated 7.6 percent, according to a Goldman Sachs Group Inc forecast.
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