Prologue Journal

The labour market has been impacted by the pandemic
Since the outbreak of the pandemic, the labour market in Hong Kong has faced critical challenges, resulting in a skill mismatch in the post-pandemic period. There is clearly a long journey ahead before we fully recover. Many employers have expressed concern about recruitment as they have found it very difficult to hire and retain staff due to the labour shortage. At the same time, however, many workers’ livelihoods have been severely impacted because of the statutory minimum wage freeze over the past four years. Although it will be raised to $40/hour beginning 1 May 2023, it might not sufficiently make up for inflation, especially in terms of food and energy. If workers’ wages are not enough to cover their basic cost of living, and transportation costs or other costs they need to bear to go to work, this will deter potential workers from joining the workforce. This will in turn worsen the labour shortage, creating a vicious cycle in Hong Kong. A living wage, on the other hand, ensures workers can lead a decent life, and would thus attract economically inactive individuals to return to the workforce and alleviate the labour shortage.

The living wage is a remedy to a dilemma and creates a win-win situation 
It is high time employers pay their employees a living wage. On the one hand, doing so would alleviate the problem of working poverty by providing employees with fair wages. On the other, employers could recruit and retain talent more easily, and workers would more likely be committed to their jobs as well. Moreover, Generation Z and millennials generally place more emphasis on a company’s values; by paying a Living Wage, employers can show their commitment to paying fair wages and attract more young talents to join their company. All around, there are many solid reasons for why a Living Wage would create a win-win situation for both employers and employees and address the labour shortage in Hong Kong.