Opinion | Coronavirus pandemic could scar Hong Kong youth economically for life – but offers opportunities too

Name: Covid-19 pandemic clouds future for Hong Kong’s university Class of 2020
Uploaded: 2020-08-19T01:15:05.000Z
Duration: 7 min 46 s
Description: Covid-19 pandemic clouds future for Hong Kong’s university Class of 2020

Not only does the impact of a financial crisis persist through a young person’s lifetime, but those in less desirable jobs are also likely to have a harder time improving their prospects

To counter this, the government must launch programmes to retrain youth for jobs in industries that are on the rise, such as medical technology

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A lone person walks down a street lined by closed bars in Lan Kwai Fong, Central, amid the third wave of coronavirus infections on July 29. Photo: Nora Tam

William PangandKelvin Lee

Published: 9:15am, 19 Aug 2020Updated: 9:18am, 19 Aug 2020

After the 2008 global financial crisis wreaked havoc across financial markets around the world, young people would feel its after-effects for years to come, as employment rates did not recover to their pre-crisis levels.

Hong Kong’s youth may face a similar fate. Today, the youth unemployment rate has skyrocketed to 9.9 per cent, more than double the overall unemployment rate. As the trend shows no signs of abating, it may reach the levels we witnessed during the severe acute respiratory syndrome epidemic.

If there’s one takeaway on the financial crisis’ impact on young adults, it is that long-term effects – such as prolonged unemployment, lower pay and a reduced ability to fulfil career goals – will plague many young adults for the rest of their lives, a phenomenon economists refer to as “scarring”.

Some graduates will fare better than others, according to a paper published in late July by researchers looking into Australia’s job market post 2008. The researchers found that young people in more attractive occupations – doctors, scientists and specialist managers – were able to survive the economic downturn and remain in relatively well-paying jobs.

However, young people in less attractive jobs, such as those working in the service or hospitality industry, were more likely to be stuck in less desirable jobs and had a much harder time ascending the social ladder.

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Covid-19 pandemic clouds future for Hong Kong’s university Class of 2020

The picture becomes more complicated when you factor in that Hong Kong, like Australia, suffered less of an economic hit during the financial crisis compared to the United States or countries in Europe, and saw a much faster economic recovery.