LettersHong Kong cannot afford a ‘lost generation’ created by economic hardship

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People gather to watch the sunset from a viewing platform in Tamar Park overlooking Victoria Harbour in Hong Kong, on May 5. The economic downturn means Hong Kong’s fresh graduates may have to settle for lower-quality and low-paying jobs, which could potentially undermine their self-esteem. Photo: AFP

Published: 6:25am, 2 Jun 2020Updated: 6:25am, 2 Jun 2020

Covid-19 has dominated headlines across the globe for months. The soaring death toll and infection tally have dampened economic activities and thrown the world into a panic.

Hong Kong is also bearing the brunt, given its huge reliance on tourism and financial services, and already reeling from a recession. The unemployment rate has rocketed to a 10-year high of 5.2 per cent. Despite the government’s hefty relief package for businesses, some vulnerable groups will still miss out – especially youngsters fresh out of university.

Economists warn that youngsters can be left scarred if they experience job insecurity at the start of their careers. As companies downsize and cut costs, our youngsters may have to seek lower-quality and low-paying jobs, potentially undermining their self-esteem.

Before the pandemic, these energetic youngsters had been ready to stride into the labour market armed with their new degrees, and aspired to climb the social mobility ladder. Without timely assistance, this “lost generation” could become disgruntled, contributing to the rise of socially withdrawn “hidden youth” in Hong Kong, and other social crises. Society will eventually have to foot the bill.

While injecting much-needed cash into small and medium-sized enterprises is important, the government should not turn a blind eye to the plight of these young graduates. It is important to create more opportunities, such as large-scale government-subsidised internships to encourage companies to hire fresh graduates. Resources could also be devoted to career-counselling services.