Hong Kong’s labor market is seeing its biggest decline in almost four decades, underscoring the significant challenges arising from an aging population and a drop in talent. The Census and Statistics Department revealed on Monday a 2.4% decrease in the city’s working population, which amounts to a staggering 94,100 people. This is the largest labor plunge since the Hong Kong government started tracking the data in 1985.
With an economy that has suffered its third contraction in four years, Hong Kong is in desperate need of a financial rebound and is fighting an uphill battle. The legislation of a national security law and severe pandemic restrictions has forced many professionals, including bankers and lawyers, to leave the city. This deep shortage in manpower will have a huge impact on the public services and on Hong Kong’s global competitiveness.
Chief Executive John Lee is placing importance on his administration’s goal of attracting talented personnel. Last October, Lee initiated a two-year work visa program with the aim of bringing in educated high-income earners and top university graduates. This initiative has seen overwhelming interest, particularly within the Chinese community since 10,000 registrations have already been made.
Hong Kong is also in a very competitive rivalry with Singapore in order to attract wealth business. An income tax decrease for family offices was announced in March in an attempt to boost this goal. Additionally, the city is focused on fixing the decrease in tourism due to the pandemic, an industry that Goldman Sachs Group Inc. says could benefit the economy’s growth by 7.6%.
The company mentioned in this article is Goldman Sachs Group Inc. It is an American multinational finance and investment banking firm that serves a diversified client base, including corporations, financial institutions, governments, and high-net-worth individuals. The company serves clients through its four main business divisions: Investment Banking, Institutional Client Services, Investing & Lending, and Investment Management.
The person mentioned in this article is Hong Kong Chief Executive John Lee, who was elected in July 2020. He has been investing significant efforts into creating strategies to restimulate the city’s economy. This includes his Global Talent Program to attract more professionals, a two-year visa policy for high-income earners and top university graduates, and an income tax deduction to invite wealth business. Lee has been focusing on rebuilding public services and the city’s competitiveness, vowing that his plans will put Hong Kong back on track.