Global Courant
HONG KONG — Hong Kong will relax entry rules for foreign workers to counter manpower shortages in the financial center, Chief Executive John Lee said.
The government will announce “very soon” its plan to import more people to work in sectors facing “severe” labor shortages, Lee said at his regular press conference on Tuesday.
“If we have a serious labor crisis and don’t act on it, the whole community will be affected,” Lee said, warning of risks to the city’s economy and competitiveness.
Hong Kong is facing a lack of workers in the service sector and other industries as business boomed following the removal of the pandemic curbs. Economists have attributed the problem to structural factors, including a shrinking local labor force and the city’s current policy of importing labor.
Hong Kong’s economy grew rapidly in the first quarter and emerged from recession as the opening of borders reinvigorated spending. Economists now expect gross domestic product growth to accelerate to 4.6 percent in 2023 as the recovery strengthens, according to the latest Bloomberg survey.
While Mr. Lee did not reveal specifics, he referred to the struggles in sectors such as travel, transportation and construction.
The city wants to bring in at least 10,000 construction workers and 8,000 workers in transport and logistics, local newspaper Sing Tao reported, citing unidentified people.
Labor shortages are also acute in Hong Kong’s aviation industry, hindering the city’s efforts to re-establish international ties as it seeks to revive its role as a crucial hub in Asia.
In early 2023, the city’s airport was operating with 32 percent fewer employees than before the pandemic. As a result, Hong Kong lacks the employees needed to assist with passenger check-in, baggage handling or catering.
Flagship Cathay Pacific Airways has also faced chronic staff shortages after overseeing sharp cuts to jobs, wages and working conditions during the pandemic. BLOOMBERG
