Hong Kong’s labour pool may start to shrink sooner than expected, according to a new report, which could set the stage for protracted low economic growth.
"Hong Kong’s working age population is expected to post almost no growth over 2015 and 2016 before beginning to decline from 2017 onwards," Morgan Stanley economists said in a recent report. Working age is typically defined as individuals aged 15 to 64.
The forecast marks a significant change after the labour force averaged 0.9 percent annual growth over the past decade. It also means the city’s demographic issue is more urgent than previously thought. Back in November, Secretary for Labour & Welfare Matthew Cheung said the city’s labour force of 3.59 million would only start to decline after 2018.
(Source: CNBC)