Hong Kong to ease entry rules for foreign workers to stem manpower crunch

By Kari Lindberg
 

Hong Kong will ease entry rules for foreign workers to stem a manpower shortage in the financial hub, Chief Executive John Lee said. 
 

The government will “very soon” announce its plan to attract more people to work in sectors suffering from a “severe” labor shortfall, Lee said during his regular press briefing Tuesday. 

“When we have a serious labor crunch, if we do nothing about that, the entire community will be affected,” 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 immigration 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% this year as the rebound strengthens, according to the latest Bloomberg survey.

While Lee didn’t reveal any specifics of the plan, 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 laborers in transportation and logistics, local media Sing Tao reported, citing unidentified people. 

Worker scarcity has been acute in the Hong Kong’s aviation industry as well, hobbling the city’s efforts to reestablish international links as it tries to revive its role as a critical hub in Asia. 

At the start of this year, the city’s airport was operating with 32% fewer workers than it did pre-pandemic. That’s meant Hong Kong doesn’t have the workers necessary to help with passenger check-in, baggage handling or catering. Flagship carrier Cathay Pacific Airways Ltd. has similarly seen a chronic staff shortage after overseeing deep cuts to jobs, pay and workplace conditions during the pandemic.