Countering chronic labour shortages in a fast-changing economic environment has become a must rather than an option for Hong Kong. Since the introduction of a targeted labour importation scheme in 2023, tens of thousands of non-local workers have been brought in. While the bottlenecks in some sectors have eased, the influx has also raised concerns of abuse.

The government has rightly reviewed the scheme to ensure it can continue to serve its purposes. Under a new two-tier mechanism starting from June 16, employers seeking to fill specific catering jobs – such as cook, waiter, bartender, receptionist and cashier – face a stricter staffing ratio, up from the original 2:1 of local to imported workers to 3:1.

The mandatory prior recruitment drive for local workers is also extended by a fortnight to six weeks. Employers are also required to attend job fairs organised by the Labour Department once every two weeks to enhance the chance of local recruitment. For stronger deterrence against abuse, penalties for multiple infringements of the rules are also toughened, with the application ban period now being counted cumulatively rather than concurrently, up to a maximum of five years.

The new arrangements appear to have struck a balance. While it recognises the difficulties in local recruitment among some jobs, there are also tighter safeguards against abuse. Even if it makes hiring non-local workers more cumbersome, the new approach can ensure those with genuine needs can continue to import workers without jeopardising job opportunities for locals.

As of May, the scheme had approved more than 17,000 applications involving nearly 110,000 workers, about 40 per cent of whom were employed in the food and beverage sector. According to official figures, the industry’s unemployment rate stood at 6.3 per cent in the February to April period, despite a 5 per cent job vacancy rate. With the shortage still expected to range from 1,000 to 4,000 jobs by 2028, the crunch cannot be ignored.

Noting that the shrinking labour force is expected to prevail amid an ageing population and economic transformation, the government has warned that a manpower mismatch will persist in the short and medium term. That explains why officials are open to the idea of keeping the importation scheme in the foreseeable future.