HONG KONG – Hong Kong will ease entry rules for foreign workers to stem a manpower shortage in the financial hub, Chief Executive John Lee has said.
The government will “very soon” announce its plan to import more people to work in sectors suffering from a “severe” labour shortfall, Mr Lee said during his regular press briefing on Tuesday.
“When we have a serious labour crunch, if we do nothing about that, the entire community will be affected,” Mr Lee said, warning of risks to the city’s economy and competitiveness.
Hong Kong is struggling with a lack of workers in services and other industries as business surged following the removal of pandemic curbs. Economists have attributed the problem to structural factors, including a shrinking local workforce and the city’s current labour importation policies.
Hong Kong’s economy grew rapidly in the first quarter, emerging from recession as the opening of its borders revived spending. Economists now expect gross domestic product growth to accelerate to 4.6 per cent in 2023 as the rebound strengthens, according to the latest Bloomberg survey.
While Mr Lee did not reveal any specifics, he referenced struggles in industries including travel, transportation and construction.
The city wants to bring in at least 10,000 construction workers and 8,000 labourers in transportation and logistics, local newspaper Sing Tao reported, citing unidentified people.
Worker scarcity has been acute in Hong Kong’s aviation industry as well, hobbling the city’s efforts to re-establish international links as it tries to revive its role as a critical hub in Asia.
At the start of 2023, the city’s airport was operating with 32 per cent fewer workers than it did pre-pandemic. That has meant Hong Kong does not have the workers necessary to help with passenger check-in, baggage handling or catering.
Flagship carrier Cathay Pacific Airways has similarly seen a chronic staff shortage after overseeing deep cuts to jobs, pay and workplace conditions during the pandemic. BLOOMBERG