In accordance with governmental forecasts, Hong Kong achieved the pinnacle of global longevity in 2022, with men and women boasting average life expectancies of 81.3 and 87.2 years, respectively. A Lancet publication authored by the University of Hong Kong in collaboration with British and Australian scholars examined mortality rates across 18 affluent OECD nations. The findings underscore that denizens of Hong Kong, irrespective of socioeconomic status, exhibit the lowest mortality rates related to cardiovascular, female cancer, smoking, and traffic accidents. Analyzing data spanning 1979 to 2016 reveals an increase of 1.86 years in average life expectancy for men and 2.5 years for women in Hong Kong.
Relative to the 1970s, the current average life expectancy of Hong Kong residents has surged by more than a decade. The concomitant decline in birth rates has triggered societal challenges, encompassing diminished productivity and resource allocation pressures, notably in health, welfare, and housing sectors, skewed toward an aging demographic. This trend may also precipitate a reduction in investments earmarked for critical areas like infrastructure and education.
However, the extended life expectancy also presents novel opportunities. Effectively harnessing the human capital of the elderly could potentially mitigate Hong Kong’s labor force contraction post-pandemic.
The remedy lies in incentivizing highly educated seniors to reenter the workforce. Presently, the elderly in the workforce predominantly occupy low-educated and low-skilled roles. As per the 2021 Population Census, the elderly population aged 65 and above has tripled over the past decade, reaching 1.45 million in 2021, with 33% falling within the 65-69 age bracket. Concurrently, the elderly working population has increased from 65,000 to 210,000 during the same period.
Yet, despite this growth, the median monthly income for the elderly working population in primary employment stood at $11,100 in 2021, merely 60% of the overall working population’s median income. Government analysis attributes this income disparity to the elders’ comparatively lower educational attainment and reduced working hours. The data highlights a concentration of elder workers in low-skilled occupations such as “services and sales workers” and “elementary occupations,” with professionals constituting a mere 4.6% of the elderly working population, as opposed to 11.2% of the overall working population.
Moreover, nearly 30% of adults aged 65 and above in Hong Kong possess a high school education or higher. These individuals, part of the baby-boomer generation, bring valuable knowledge, experience, skills, and business networks, yet their recent retirements have coincided with the departure of many young workers, impeding the development of Hong Kong’s knowledge-based economy. In a global talent competition, this scenario invariably leads to elevated average wage levels, impacting the city’s competitiveness.
Hence, it is imperative for the government to collaborate with the business sector in formulating policies and measures, including tax incentives, to entice highly educated elders back into the workforce. This strategic initiative aims to retain and maximize the potential of this valuable human resource pool. Simultaneously, for those elders already engaged in the workforce, optimizing their strengths while fostering increased social participation can mitigate the loneliness induced by retirement, promote mental well-being, and ensure continued alignment with technological advancements, resulting in a mutually beneficial outcome for all stakeholders.