Almost 6 in 10 Hong Kong bosses struggling to find talents

This is the most since 2008.

According to Barclays, besides the impact from rapid growth in derived demand for labor, supply-side factors can also explain Hong Kong’s consistently low unemployment rate.

Many sectors face chronic labor shortages regardless of the state of the economy. According to a recent report by Manpower Group, some 57% of Hong Kong employers are having trouble finding the right staff, the most since 2008.

Here’s more from Barclays:

Demographic factors, such as an aging population, could one of the reasons. The percentage of male employees aged below 50 have now decreased to 64% from 77% back in 2005, and this may have caused labor shortages in some sec¬tors requiring intensive manual work.

Fundamental changes in the labor demand-supply equation explain why low unemployment rates have been consistently seen in the past two and a half years.

As Hong Kong integration with China grows, the unemployment rate will likely remain at low levels for a prolonged period (absent shocks to China’s economy). Nevertheless, one must be careful not to equate this with a healthy labor market.