Labour force:

age and sex structure

We look now at the overall labour force figures over the last decade
in terms of absolute changes in their composition.

The first table shows, for most of the period, a year-on-year increase in the workforce numbers, usually significant for both men and women. The exceptions are the recessive period in the earlier part of the decade (2002-3) and last year. Note, however, that in 2002-3 the figures are almost insignificant: the net effects are negligible. That’s less the case in 2009 when, in arguably more favourable circumstances, the effects were more pronounced. But still, a net loss of about 4000 people given the repatriation of high numbers of non-resident workers and the lull in new construction investment is not too significant.

The age composition, however, displays a few patterns that should be a matter of concern (Tables 2 and 3) for men and women, respectively. Note that in both recessive periods the main losses in the labour force have taken place in the younger generations. In 2009, especially, the male labour force losses were clearly concentrated in the class ages below 45 years. There may be several causes for this but for our purposes here it suffices to say that those features underline the tendency to an aging labour force. Such a trend is probably not more pronounced because the working life of women tends to be shorter and the female labour supply is more frequently renewed, so to speak. Note that for ages above 55, the female contribution to the increases in the labour market decreases very fast. Over the decade, in any case, for both men and women, we register two clear patterns. That is, both the size and the age of the labour force move upwards. Beyond that, bear in mind, finally, that differences between the behaviour of the two sexes in our economy are not noticeably different from what is common in more developed economies.

Labour force:

current vacancies

Every quarter, the DSEC carries out a survey on employment and vacancies for several economic sectors. That survey is naturally important as a gauge of firms’ labour needs. A word of caution is required however, concerning the aggregate figures used in the tables below. Some of the surveys take place in even quarters, others in odd quarters. In that sense, the figures cannot be added up, they do not provide an unambiguous snapshot of the conditions in the labour market at a specific point in time. They provide, nonetheless, a useful and clear enough picture about trends and imbalances in that market.

If we look at the latest figures, referring to the second half of 2010, what are its distinctive features? In the eight sectors covered (which amount to about 160,000 workers and exclude, notably, the public or social sectors), the three big ones – gaming, hotels and restaurants, and commerce – represent about 80% of the employment. With the demise of manufacturing, these are the ever more concentrated  foundations of the local wealth.

Now, if we look at current vacancies (Table 2) we see some interesting features. In particular, note that the number of vacancies in gaming is comparatively very small. They amount to just about 4% of the sector’s workforce. That is, so to speak, compensated by a significant unsatisfied demand in the other main sectors. Commerce and hospitality represent 70% of all existing vacancies. These figures suggest that gaming attracts most of the available and mobile labour force, a fact that deepens the difficulties already posed to the other sectors by the overall scarcity of labour. Note, in addition, that total vacancies for these sectors correspond roughly to the total figures of the unemployed in Macau.

That is particularly striking if we look to Table 3, which shows that a significant level of vacancies concern non-qualified personnel and therefore, should be relatively easy to fulfil. That share is especially striking in the hospitality sector. These figures point to a serious misalignment between the labour policy and economic realities.

by José I. Duarte
Economist /Macau Business
Senior Analyst Data source: DSEC
Charts and graphics in our paper edition and MB online browseable