Boost employment, training for healthier population growth
- Hong Kong population ticks up for second year in a row, but labour and and workforce shortages persist despite talent scheme admissions and one-way permit arrivals
Changing demographics continue to cloud Hong Kong’s post-Covid recovery. While there are more signs of the city returning to healthy population growth, the shrinking workforce and labour shortages are still holding back the economy. The road ahead remains challenging.
Following a worrying exodus fuelled by the pandemic and political uncertainties, the overall population has edged up for the second year in a row to 7.5 million in 2023. The government attributed the increase to more citizens returning from overseas after the lifting of Covid-19 curbs and admissions of mainlanders and overseas talent under various schemes.
Separately, the number of babies born last year also increased for the first time in six years. A total of 33,200 births were recorded in 2023, a 2 per cent increase over the previous year and the first uptick since 2017.
The figure, however, is still considerably lower than the 54,400 deaths recorded last year, resulting in a natural decrease of 21,200 in population.
The births are more a result of life returning to normal after Covid, rather than the HK$20,000 cash incentives for newborns introduced by the government last October. Whether there will be a baby boom as a result remains to be seen.
Number of babies born in Hong Kong rises for first time in 6 years
Admittedly, an overall 0.4 per cent rise, or 30,500 residents, offers no relief to a city suffering from the double whammy of an ageing population and an ongoing brain drain. But the situation would have been worse had it not been mitigated by the government’s aggressive efforts to grab overseas talent.
According to government data, some 70,000 attracted through talent schemes and 40,800 one-way permit holders from the mainland arrived in Hong Kong last year. The modest net inflow suggests a considerable number of Hongkongers quit the city, an ongoing problem that cannot be ignored.
There are also concerns whether the changing demographics will turn into economic dividends. If the latest jobless figures are any guide, manpower and productivity remain issues of concern.
Despite more talent-scheme admissions and one-way permit holders, the labour force decreased by about 12,800 from 3,812,500 in October-December to 3,799,700 in November to January.
Even though the unemployment rate remains stable at 2.9 per cent, the labour market is expected to stay tight, officials say. The pressure to import workers for specific sectors prevails.
We trust the authorities would not paint too rosy a picture ahead. After all, the city cannot just count on cash-for-births schemes and talent and labour admissions for healthy population growth.
A good environment for people to stay and raise families and a more comprehensive employment and training policy also are important.
