The Low-Tech Trap: What Hong Kong’s Visa Policy Reveals About Tech Labor Markets

Hong Kong’s General Employment Policy (GEP) has been a subject of interest in recent years, with the Immigration Department reporting a significant increase in working visas granted. However, closer inspection of the numbers reveals more questions than answers. For instance, nearly 80% of foreign workers hired on short-term contracts earn less than HK$20,000 per month – a striking statistic that highlights the precarious nature of these jobs and speaks to broader issues in the global tech labor market.

The GEP has been on the rise since its inception, with 31,278 working visas granted last year marking the second consecutive year the scheme cleared the 30,000-level. However, what’s striking is not just the sheer number of applicants but also the types of jobs they’re applying for. Short-term contracts have become increasingly prevalent, rising from 72.1% to 79.7% in recent years.

This shift towards shorter-term positions has significant implications for both workers and employers. Companies have long used short-term labor as a means to circumvent traditional employment laws and regulations. But what does this say about the industry’s attitude towards its workforce? Are developers and engineers simply treated like disposable resources – ones that can be hired and discarded at will?

The numbers are even more striking when you look at earnings. Nearly half (47.5%) of successful applicants earned below HK$20,000 per month, a paltry sum considering the cost of living in Hong Kong. This isn’t just an issue of individual workers struggling to make ends meet; it’s also a symptom of a broader problem: the devaluation of tech work itself.

When companies are willing to pay less than $2,600 for a month’s worth of labor, what does that say about their valuation of human talent? The data from the first half of this year only serves to underscore these concerns. With 13,640 GEP visas approved and nearly 70% on short-term contracts, it seems clear that Hong Kong’s visa policy is more geared towards addressing immediate labor shortages than providing stability for workers or employers alike.

This worrying trend suggests that the tech industry is increasingly treating its workforce as temporary solutions rather than long-term assets. By doing so, companies are undermining their ability to build and maintain sustainable teams. A stable workforce is essential for innovation and growth; by prioritizing short-term gains over long-term stability, Hong Kong risks creating a workforce that’s both precarious and uncompetitive.

The tech industry’s reliance on low-skilled workers has been well-documented, from the gig economy to H-1B visa holders in the US. But Hong Kong’s situation highlights a particular challenge: one where companies are forced to navigate complex labor laws and regulations while still trying to maintain a competitive edge.

In this light, it’s hard not to see the GEP as a Band-Aid solution – one that addresses immediate needs but does little to address deeper structural issues. Policymakers and industry leaders must take a hard look at these numbers and ask: what kind of tech labor market do we want to build? One that values human talent and provides stability for workers, or one that relies on cheap labor and disposable contracts?

The answer won’t be easy – but it’s long overdue.