Hong Kong Labour Rights Monitor Urges Immediate Halt
Over the past 18 months, the Hong Kong government has unilaterally implemented three Industry-Specific Labour Importation Schemes and the Enhanced Supplementary Labour Scheme without public consultation. As a result, the number of imported foreign workers has skyrocketed 23 times, from around 3,100 per year to at least 71,000, equivalent to 65% of the city’s unemployed population. This government-induced shock to the labour market is severely impacting local workers, with industries such as construction, retail, and food services bearing the brunt—seeing sharp increases in unemployment and underemployment rates.
Unemployment Surges: Construction, Retail, and Food Services Hit Hard
Since the implementation of these schemes, local employment conditions have significantly deteriorated, with certain industries being particularly affected:
- Construction Industry: Unemployment rate rose from 3.9% to 4.4%, with the number of unemployed workers increasing from 13,900 to 16,100 (+16%).
- Retail Industry: Unemployment rate climbed from 3.2% to 4%, with unemployed workers rising from 8,800 to 10,200 (+16%).
- Food Services Industry: Unemployment rate increased from 4.3% to 4.7%, with 11,000 workers now jobless (+7.8%).
At the same time, underemployment has worsened:
- Construction: Underemployment rate grew from 3.3% to 3.9%, affecting 14,400 workers (+ 22%).
- Retail: Underemployment rate surged from 0.7% to 1.2%, with 3,000 workers affected (+ 58%).
- Food Services: Underemployment rate jumped from 1.3% to 1.9%, impacting 4,500 workers (+41%).
These figures clearly show that the government’s relaxed foreign labour importation policies are making it harder for local workers to secure jobs and worsening employment conditions.
Stagnant Wages: Local Workers’ Salaries Under Pressure
With the increase in labour supply, wage growth has been severely suppressed. Since the implementation of the relaxed scheme, the wage growth (comparing changes between May 2023 and November 2024) of many job categories with an influx of foreign workers has been significantly lower than the overall wage growth of local workers during the same period (+9.5%):
- Construction workers: Wage growth remains at 0%, failing to keep up with inflation—effectively a pay cut.
- Call Centre Operators: Wages rose by only 1.6%.
- Warehouse Staff: Wages increased by just 4.2%.
- Waiters (Chinese Restaurants): Wage growth at 6.6%, significantly below the overall market increase
This disproportionately affects low-income workers, as government policies not only limit their job opportunities but also suppress wage growth, weakening their bargaining power and making life even more difficult.
Hong Kong Labour Rights Monitor Urges Government to Halt Foreign Labour Importation Schemes
The relaxed labour importation schemes have directly impacted the job market. Implemented without proper consultation, with disregard for social realities, and lacking effective regulation, the scheme not only harms local workers’ employment rights but also creates loopholes for the abuse and exploitation of migrant workers. We strongly demand that the government:
✅ Immediately halt the three Industry-Specific Labour Importation Schemes and the Enhanced Supplementary Labour Scheme
✅ Reinstate the ban on foreign labour for 26 job categories to prevent further pressure on low-income local workers.
✅ Resume local recruitment processes and strengthen control to prevent companies from manipulating fake job postings to create an illusion of labour shortages.
✅ Increase inspections and impose strict penalties on unscrupulous employers and agencies that exploit migrant workers.
✅ Reopen public consultations, listen to the views of trade unions and workers, and develop labor policies that meet the needs of society.
The government must protect workers instead of flooding the market with foreign labour, depressing wages, and exploiting the working class.