Letters | Why poor, elderly Hong Kong workers may not welcome a higher minimum wage

Given the shaky economic conditions in Hong Kong and globally, higher wages could hit job openings in an already tight employment market and ironically push more workers, especially the unskilled and vulnerable elderly, further into poverty

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An elderly woman sitting in her wheelchair in Sham Shui Po. Photo: Edmond So

Published: 7:05am, 18 Dec 2019Updated: 7:05am, 18 Dec 2019

The latest poverty report reveals that Hong Kong had 1.4 million people living in poverty last year, the second highest figure since records began a decade ago (“One in five Hongkongers living below the poverty line in 2018”, December 13).

The Concerning CSSA and Low Income Alliance has suggested raising the minimum wage to alleviate poverty but this is the worst advice the government can get. A higher minimum wage will not only fail to alleviate poverty, it could leave people more impoverished.

One problem with a higher minimum wage is that it can reduce job opportunities, which risks pushing more people into poverty with unemployment. Given the poor and volatile global economy and the social turmoil in Hong Kong, many more businesses are expected to close down.

A higher minimum wage is the last thing an entrepreneur needs to keep their business going. For now, the protection of businesses must be considered before wages.

Even when conditions recover, the policy would remain unfeasible. The higher the hiring cost, the fewer people entrepreneurs would employ. A higher minimum wage would simply raise the incomes of some in employment but force out many more into unemployment, deepening overall poverty.

The elderly make up more than a third of those living under the poverty line. They are the most difficult group of people to lift out of poverty, being old, possibly weak and with health issues that leave them unsuitable for most jobs. They may also not have the necessary skills for today’s jobs, such as knowing how to use smartphones and navigate the internet.