HKMA unveils pay subsidy plan for Class of 2020 to encourage banking sector hiring amid economic slump
- HKMA unveils a US$1.4 million wage subsidy plan to encourage lenders to hire new market entrants amid economic slump
- The effort is a small commendable gesture but unlikely to create any impact, headhunter says
The de facto central bank will pay half of the pay of fresh university graduates hired by the city’s 39 lenders and e-wallet operators, it said on Thursday. The subsidy will apply for six months for those hired from September, based on a monthly pay of HK$12,000, it added.
The financial services industry accounts for about one-fifth of Hong Kong’s gross domestic product and employs some 263,000 workers, according to official data. In the past two years, many banks have accelerated job cuts while freezing new hires to trim costs, leaving many of the 20,000 yearly graduates staring at a bleak market.
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Hong Kong’s economy shrank 8.9 per cent last quarter, while unemployment rose to a 10-year high of 5.2 per cent in the three-month rolling period to April 30. Among those in the 20-29 age group, the jobless rate was 8.1 per cent.