News Summary
Hong Kong’s unemployment rate has risen to 3.5%, marking the highest level in two years and raising concerns about the local economy. With tens of thousands out of work, experts suggest that improvements are only likely with economic recovery. In response, the government has launched the Technical Professional List to attract non-degree professionals for critical sectors facing labor shortages. However, union leaders warn it may threaten local job security. With significant workforce shortfalls projected across various industries, employers are shifting hiring practices to attract local talent amid an aging workforce challenge.
Hong Kong’s Unemployment Rate Hits Two-Year High of 3.5%
Hong Kong’s unemployment rate has surged to 3.5%, marking a two-year peak that has sparked discussions regarding the city’s labor landscape. While this figure represents a noticeable rise, it is still considered relatively low compared to global standards.
Economic Context and Predictions
Experts suggest that the current unemployment rate is unlikely to decrease in the near future, largely due to ongoing issues in the broader macroeconomic environment. This has led to tens of thousands of individuals finding themselves jobless as economic challenges persist.
The Technical Professional List Initiative
In response to rising unemployment, the government has introduced the Technical Professional List (TPL). This initiative is designed to attract skilled non-degree professionals in eight essential trades that face significant manpower shortages. Although the TPL aims to fill critical job vacancies, its timing may not align well from a public relations standpoint, as many local job-seekers express concerns regarding their job security.
In-Demand Professions
The TPL outlines several specific roles that employers can now fill with nonlocal technical professionals as of June 30. These roles include:
- New industrialization technicians
- Nurses
- Aircraft maintenance technicians
- Marine services technicians
- IT technicians
- Elevator/escalator technicians
- Building Information Modeling coordinators
- Electrical technicians
Workforce Shortages in Specific Sectors
Looking ahead, the aviation sector is projected to face a workforce shortfall of between 18,000 to 23,000 workers by the year 2028. Airport operators have noted that it may not be realistic to fill these vacancies solely with local candidates, prompting tighter collaborations between employers and educational institutions.
For instance, Hong Kong Aircraft Engineering Co. is working hand-in-hand with the Vocational Training Council to cultivate local talent to tackle pressing manpower needs. Furthermore, they have partnered with technical colleges and training schools in mainland China in an effort to enhance the pool of qualified job candidates available in the upcoming years.
Shifting Employer Preferences
Companies in Hong Kong are currently investing heavily in the recruitment of staff, thus altering the balance of power in favor of prospective employees. Employers now often find themselves favoring local candidates, even if this means incurring additional training costs due to the severe talent shortages across various industries.
A striking example is Cathay Pacific, which has lost over 1,400 pilots during the COVID-19 pandemic. In response, the airline is actively seeking local talent and improving its pilot training programs to bolster its workforce.
Addressing the Aging Workforce in Construction
The construction industry presents its own challenges, marked by an aging workforce where more than 40% of construction workers are over 50 years old. This demographic imbalance emphasizes the urgent need for younger professionals in the field.
As Hong Kong’s population ages, the demand for healthcare personnel is expected to continue rising. Additionally, the recent reopening of Hong Kong International Airport’s Terminal 2 and upcoming developments like Skytopia are projected to create even more job openings, particularly for those involved in elevator and escalator services.
Opportunities for Local Talent
Employers are beginning to adopt a more flexible stance, showing openness to considering candidates who may not possess complete qualifications, given the severe shortages of talent. This evolving landscape may present an opportunity for union leaders to connect local jobseekers with potential employers.
Bridging programs aimed at technical professionals can also aid those with pertinent skills, ensuring they can stay and contribute to the workforce in Hong Kong. Coordinated efforts among various stakeholders could efficiently help to match unemployed individuals with job openings in sectors highlighted by the TPL.
Moreover, promoting a cross-sectoral approach may benefit job seekers and career changers, opening doors to new opportunities in industries that are currently in high demand.
Deeper Dive: News & Info About This Topic
Additional Resources
- China Daily Asia
- Wikipedia: Economy of Hong Kong
- China Daily Asia – Job Shortages
- Google Search: Hong Kong unemployment rate
- China Daily Asia – Labor Market Trends
Author: Construction TX News
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