HONG Kong will ease entry rules for foreign workers to stem a manpower shortage in the financial hub, chief executive John Lee said.

The government will “very soon” announce its plan to import more people to work in sectors suffering from a “severe” labour shortfall, Lee said during his regular press briefing on Tuesday (Jun 13).

“When we have a serious labour crunch, if we do nothing about that, the entire community will be affected,” Lee said, warning of risks to the city’s economy and competitiveness.

Hong Kong is struggling with a lack of workers in services and other industries as business surged following the removal of pandemic curbs. Economists have attributed the problem to structural factors, including a shrinking local workforce and the city’s current labour importation policies.

Hong Kong’s economy grew rapidly in the first quarter, emerging from recession as the opening of its borders revived spending. Economists now expect gross domestic product growth to accelerate to 4.6 per cent this year as the rebound strengthens, according to the latest Bloomberg survey.

While Lee didn’t reveal any specifics of the plan, he referenced struggles in industries including travel, transportation and construction. The city wants to bring in at least 10,000 construction workers and 8,000 labourers in transportation and logistics, local media Sing Tao reported, citing unidentified people.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Worker scarcity has been acute in the Hong Kong’s aviation industry as well, hobbling the city’s efforts to reestablish international links as it tries to revive its role as a critical hub in Asia.

At the start of this year, the city’s airport was operating with 32 per cent fewer workers than it did pre-pandemic. That’s meant Hong Kong doesn’t have the workers necessary to help with passenger check-in, baggage handling or catering. Flagship carrier Cathay Pacific Airways has similarly seen a chronic staff shortage after overseeing deep cuts to jobs, pay and workplace conditions during the pandemic. BLOOMBERG