New Delhi, 13th June 2023: Hong Kong is going to relax entry requirements for foreign workers in order to address a labour shortfall in the financial centre, according to Chief Executive John Lee.
The government will “very soon” publish a plan to entice more individuals to work in areas with “severe” labour shortages, Lee said at his regular press conference on Tuesday.
Lee warned about the City’s vulnerable economy and competitiveness, he said, “When we have a serious labor crunch, if we do nothing about that, the entire community will be affected.”
As a result of the lifting of pandemic restrictions, Hong Kong is experiencing a labour shortage in services and other areas. Economists blame structural issues such as a declining local workforce and the city’s immigration policies for the problem.
Hong Kong’s economy expanded rapidly in the first quarter, escaping from recession as its borders were opened, reviving expenditure. According to the most recent Bloomberg survey, economists now expect GDP growth to rise to 4.6% this year as the recovery improves.
While Lee did not provide any details about the strategy, he did mention problems in businesses such as travel, transportation, and construction. According to anonymous sources, the city aims to hire at least 10,000 construction workers and 8,000 labourers in transportation and logistics.
Worker shortages have also been serious in Hong Kong’s aviation industry, impeding the city’s efforts to reestablish international linkages as it seeks to reclaim its status as a critical Asian hub.
At the start of this year, the city’s airport had 32% fewer employees than it did before the pandemic. As a result, Hong Kong lacks the personnel required to assist with passenger check-in, baggage handling, and catering.
Cathay Pacific Airways Ltd. has also experienced a persistent worker shortage as a result of substantial cuts to jobs, wages, and working conditions during the epidemic.
