5th October 2024 – (Hong Kong) A new report released by Oxfam Hong Kong paints a grim picture of the city’s widening wealth gap, with the disparity between the richest and poorest households reaching a staggering 81.9 times. The “Hong Kong Poverty Report 2024: Pathways Out of Adversity – Embracing Change Through Transformation” suggests that over 1.39 million residents, or 20.2% of the population, are living in poverty.
Professor Paul Yip, a leading scholar at the University of Hong Kong, highlighted on a local radio show that the burgeoning poverty rates are due to demographic shifts, including an ageing population and an increase in single-parent families, compounded by the economic transformations that disproportionately affect the lowest income groups. He noted that poverty in Hong Kong is no longer confined to specific areas but has become widespread, affecting various sectors and leading to increased part-time employment and unemployment among low-skilled workers.
Lai-Shan Sze, Deputy Director at the Society for Community Organisation, echoed Yip’s concerns in the same radio programme, pointing out that while post-pandemic employment initially seemed promising, many are now struggling more than last year to find work, especially in construction, food services, and retail. Wages for some have fallen by 20% to 40% compared to pre-pandemic levels. Sze particularly highlighted the challenges faced by older workers, who find it increasingly difficult to secure employment due to the digital transformation of industries and employer biases against hiring older individuals.
The Oxfam report provides a detailed analysis of the income disparities, showing that in the first quarter of 2024, the median monthly income of the poorest decile of households was HK$1,600, a sharp decline of 54.3% since before the pandemic. Meanwhile, the richest decile saw their median income increase to HK$131,100, marking nearly a 10% rise from 2019.
This analysis underscores the severe imbalance in economic prosperity and the urgent need for targeted policy interventions. The number of poor households in Hong Kong has also surged to 619,000, which now represents 22.7% of all households in the city. The elderly population has been particularly hard hit, with over 580,000 individuals aged 65 or above living in poverty, a 42.9% increase since 2019.
Both Yip and Sze call for comprehensive government action to address these issues. They suggest increasing support for low-skilled workers and stimulating the economy to create more full-time jobs. Additionally, there is a strong advocacy for improving the minimum wage and increasing employment supplements to support those who are working but remain near the poverty line.