Hong Kong’s overall unemployment rate edged down to 3.8% for the three-month period ending in October, a marginal decrease of 0.1 percentage point, yet industry experts caution that this modest improvement masks significant structural vulnerabilities, particularly within the construction and catering sectors. While the city saw a slight dip in joblessness, with the total number of unemployed individuals falling, concerns intensified regarding an impending engineering gap in construction and persistently low wages in the food service industry, suggesting the economic recovery remains uneven and fragile.
The overall reduction in joblessness was partially driven by a drop in the construction industry’s unemployment rate, which decreased by 0.2 percentage points to 7%. However, industry leaders are expressing profound anxiety over the sector’s long-term stability. Speaking on a radio program Saturday, Chow Si-kit, Chairman of the Hong Kong Construction Industry General Union, acknowledged the positive overall data but warned that the industry is barreling toward a significant downturn driven by a lack of new private sector projects.
Mr. Chow highlighted that while employment figures in active construction sites have slightly improved, the number of decoration and fitting-out workers facing unemployment has marginally risen, indicating volatile employment patterns across the sector. Crucially, the volume of new private engineering applications has dramatically decreased this year compared to last, a situation that portends future job losses.
The Looming Construction ‘Engineering Gap’
The core concern is a significant lag between current projects ending and new ones beginning, which Mr. Chow described as an immediate “engineering gap.” Construction work phases—early-stage ground preparation, mid-stage structural work, and late-stage mechanical and electrical fitting—are interconnected. A slowdown in early-stage projects now will inevitably translate into job losses for those engaged in mid-stage work next year, and for late-stage workers by 2026, as current large projects conclude.
“Large-scale infrastructure projects, such as the Northern Metropolis, offer a glimmer of hope, but they are a long-term solution that cannot solve the immediate crisis,” Mr. Chow explained, employing the Cantonese metaphor that “distant water cannot extinguish a nearby fire.” He stressed that significant job creation from these government initiatives still requires extensive preliminary work, a time-consuming process that does not immediately activate large numbers of construction workers. The industry’s recovery, he concluded, is intrinsically tied to a rebound in the sustained private property market.
Mixed Signals in the Catering Industry
The food and beverage sector also recorded a decline in joblessness, with the unemployment rate dropping 0.4 percentage points to 6.4%. Despite this positive trend, Chiu Kwun-chung, Rights Officer for the Catering and Hotel Industry Employees General Union, noted that the overall rate remains stubbornly high.
Mr. Chiu attributed the slight improvement possibly to fewer large restaurant closures recently and modest economic improvements. However, deep-seated issues persist. The union has noted an increase in cases of late or delayed wage payments, raising fears that a renewed economic slowdown could quickly translate into accelerated restaurant closures and subsequent layoffs.
Addressing the recent government-led job fairs, Mr. Chiu pointed out a significant mismatch between available positions and unemployment needs. While many openings exist, they are primarily for entry-level chefs or lower-skilled positions with wages hovering between HK$14,000 and HK$16,000. For skilled, displaced workers, these wages are often too low to accept, creating a lack of attraction that hinders recruitment and makes it difficult for new workers to join the industry.
While Hong Kong’s headline job figures appear stable, the detailed sectoral data highlights underlying economic vulnerabilities. The city’s ability to prevent a future construction industry meltdown hinges on quickly revitalizing the private investment climate, while the catering sector requires efforts to raise salary levels to ensure sustainable employment recovery.
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