Editorial | Hong Kong’s labour shortage has to be worked on now

For a city already beset with an array of pressing problems, it would be tempting for officials to leave aside anything that does not warrant immediate attention. But the forecast of an acute shortage of 180,000 workers by 2028 is one that cannot be ignored. More proactive action should be taken if the shortfall is not to further dampen economic growth.

The Hong Kong government is to be commended for flagging the problem. According to its study in 2023, the supply of manpower will rise to 3.56 million in 2028, which will still fall more than 180,000 short of the 3.75 million required. The crunch marks a worrying 260 per cent increase compared with the shortage of 50,000 last year. Skilled technical staff, such as escalator mechanics and construction workers, will make up more than one-third of the total shortage.

The projection is based on the assumption of an annual economic growth of 3.2 per cent and views from more than 1,000 industry players across 17 sectors on the supply and demand of manpower in the coming five years. Whether actual economic growth will differ from the assumption remains to be seen, but the rapidly ageing population will definitely create pressure on labour supply. Up to 28 per cent of the population, or more than 2 million people, will reach the retirement age of 65 or over by 2028, whereas the working population, aged between 15 and 64, will stand at 4.6 million, accounting for 63 per cent of the population. The data does not bode well for the economy.

Importation of labour is therefore a must rather than an option. Since 2022, the city has opened the door wider to ease the impact of an exodus fuelled by political and economic uncertainties. Meanwhile, the number of people aged between 35 and 44 rose by 20,000 in 2023, the biggest increase over the past two decades, thanks to the government’s talent recruitment drive.

Secretary for Labour and Welfare Chris Sun Yuk-han has rightly pledged to prioritise local employment while continuing with labour importation, referring to plans to bring in around 10,000 skilled foreign workers. The government should draw from the experience of recent years to ensure that the economy can sustain healthy growth under a measured approach towards labour importation.