Latest figures show that Hong Kong’s unemployment rate currently sits at 5.9 per cent and has risen eight months in a row. The current figure is the highest in 15 years, surpassing figures recorded in the aftermath of the global financial crisis in 2008 and the outbreak of SARS in early 2000s. Recent social unrest and the outbreak of Covid-19 are both contributing factors to the current unusually high figure. People in their early 20s have taken the biggest hit, with 27,600 currently out of work. In order to counter the rising unemployment rate, the government recently announced it would be creating over 5,000 job opportunities across the public and private sectors for graduates with academic backgrounds in Engineering, Environmental protection and Financial Technology.

Local job agencies’ data analysis reports from last month on hiring trends and job opportunities also highlight the issue. “The number of job vacancies for university graduates in Hong Kong has halved, and the average salary could be slashed by up to 20 per cent” according to one major local employment platform. Local media reports also suggest there seems to be no indication that graduate prospects would improve later this year as many companies have implemented hiring freezes due to the uncertainty of the global economy. However, several sectors including IT companies are still actively seeking new recruits owing to global digitalisation in the wake of Covid-19.

Meanwhile, the Chinese government declared on 18 June that they are committed to maintaining Hong Kong’s status as an international financial hub and assured that foreign investor’s interest in the city will be protected which may provide some hope for recent graduates with a financial background.

Comments by Karen Hsu, Education Services Manager for Hong Kong

The lack of job prospects might see some local graduates choosing to study a Master’s degree course to delay their entry into the job market. However, on the contrary, prospective PG students who are currently in full time employment may look to delay their studies for fear of having to return to a less attractive job market in the future.

Although the Beijing government pledged to ensure Hong Kong’s global financial status, it is hard to say at this stage whether that will have any impact on job openings or career prospects in this sector. If it does, prospective students may start to search for subjects in connection with innovation and technology e.g. FinTech, Green Tech, AI and BioTech.

UK institutions should consider highlighting their industry connections, career prospects (of studying a subject area) and support services for graduate employability when communicating with local audiences in Hong Kong.

Source:

• China committed to maintaining Hong Kong’s status as an international financial hub, Vice-Premier Liu He says, SCMP, 18.06.2020
• Hong Kong to create 5,000 jobs for young people as unemployment rate among 20 to 24-year-olds nears record high, SCMP, 18.06.2020
• Tough ride ahead for Hong Kong graduates, as job vacancies fall 55 per cent amid economy battered by protests, pandemic, SCMP, 18.05.2020