Further gloom: More Hong Kong layoffs forecast in wake of Bank of East Asia sackings
Analysts forecast that trouble is on the way for the construction, financial services and property sectors
The surprise retrenchment at Bank of East Asia has sounded an alarm about worsening employment prospects in the city, as economists warned of a “significant rise” in the jobless rate across all sectors before year’s end.
Bank of East Asia announced on Thursday that it would reduce the size of its brokerage operations in the city, cutting 180 jobs, or 3.8 per cent of its workforce,
Apart from the downturn in the tourism sector, construction, financial services and property are also becoming vulnerable to layoffs in the near future, economists warn, as the spillover from the slowing mainland economy and sluggish global demand take a toll on the city’s pillar industries.
Bank of Communications chief economist and strategist Law Ka-chung forecast the jobless rate would exceed 4 per cent by the end of the year, which would be the highest since 2010. The first-quarter figure was 3.4 per cent.
“There will be more layoffs in the financial sector for sure,” said Rouella Landicho, a manager at Morgan McKinley, which specialises in recruiting professionals for financial institutions.
An international securities firm planned to lay off workers in the city next month, with most being sales staff, Landicho said.