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Hong Kong economy
Opinion
SCMP Editorial

Editorial | Fix mismatches in Hong Kong’s labour market to lift economy

Imported workers might ease shortages but a gap between local jobseekers’ expectations and employment openings remains a problem

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A street in Central, Hong Kong, on the morning of August 21. The city’s jobless rate in the May-to-July period stood at 3.7 per cent, up from 3.5 per cent in the April-to-June period. Photo: Karma Lo
The rise in Hong Kong unemployment to the highest rate in 33 months is a reminder of the fine balance in the city’s labour market. The 0.2 percentage point rise in the jobless rate from May to July to 3.7 per cent, compared with April to June, is partly attributable to graduates entering the job market.
However, it contrasts with 3.1 per cent economic growth in the second quarter, suggesting a relatively jobless recovery amid external economic uncertainty and the growth of artificial intelligence. This reflects challenges in sectors such as food and beverage, retail, construction and property, including a mismatch between local labour and the high and low ends of the job market.
The catering sector is a case in point at the low end. Some employers have resorted to importing non-local labour after seeking locals without success, highlighting a disconnect between available jobs and local jobseekers. Regrettably, this has led to concerns about abuse by employers of the Enhanced Supplementary Labour Scheme for importing hires, exemplified by the recent banning of an employer from importing workers for a year after failing to offer a job to a suitable local applicant.
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Partly as a result, officials said that catering employers applying to import non-local workers would be required to not only conduct a four-week local recruitment effort but also to take part in direct, face-to-face matching exercises with jobseekers at government job centres, starting next month. It remains to be seen how effective that will be in bringing together more employers and local jobseekers.

The mismatch of jobs and workers is not confined to Hong Kong. This city does not have enough qualified talent to fill high-end jobs, hence in part the government’s high-profile talent admission schemes. At the same time, many local jobseekers are not attracted to low-end jobs with minimal entry-level skills in catering and restaurants, such as junior cooks and waiters, as well as other basic occupations. In that regard, the supplementary labour scheme has arguably served an important purpose in an ageing society, bringing in more than 54,000 workers as of March.

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Even so, it needs to be monitored constantly to avoid abuse. It is therefore good that the scheme will be reviewed in September, particularly since it has become the focus of a sense of unhappiness among people who have lost jobs. The catering sector, historically a major employer, faces challenges amid changing consumer behaviour and economic pressures. Imported workers might ease staffing shortages, but a mismatch in the labour market remains a problem as many locals don’t want the low-end jobs available while there is a shortage of talent for high-end ones.

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