Minimum-pay jobs on the rise for residents outside gaming industry

Photo shows a job advertisement offering a salary of MOP8,000 for kitchen assistant, among others

The emergence of “locals becoming supplementary non-local workers” has sparked discussion in the city, as the worsening job market is reflected in advertisements offering local workers monthly salaries in the low thousands.

According to an economist, are primarily for minimum-wage positions in non-gaming industries, underscoring the wage disparity across sectors.

Recently, the Times observed job advertisements on the streets of offering monthly salaries in the thousands.

One such ad, posted outside a restaurant, stated that the establishment is hiring multiple employees with relevant experience for positions like bar staff, waiters, general laborers, apprentices, and kitchen assistants, with a monthly salary of MOP8,000 or an hourly wage of MOP 50–60, and specified, “Only Macau residents will be considered.”

Among these positions, the salary levels are slightly higher than the monthly minimum wage of MOP7,072 set by Macau’s regulations.

Henry Lei

However, when calculated hourly, they are significantly above the minimum wage rate of MOP 34 per hour.

In an interview with the Times, Henry Lei, associate head of the University of Macau’s Faculty of Business Administration and vice president of the Macau Economic Association, noted that the median monthly income of local residents exceeds MOP20,000, while minimum-wage jobs are primarily found in certain categories.

“This phenomenon does exist, but current statistics do not indicate that it is becoming increasingly serious,” Lei told the Times.

However, he was quick to express concern about income inequality, noting that it may reflect the polarization of development across different industries.

“People are worried that income gaps may widen in the future, which poses a potential risk to economic and social stability,” the scholar said.

Data from the Macau Statistics and Census Bureau (DSEC) indicate that from March to May this year, the overall unemployment rate was low at 1.9%, with local residents facing a slightly higher rate of 2.5%, both unchanged from the previous period (February to April).

Leong Sun Iok

Referencing a slight improvement in gaming revenue (GGR) for the second quarter, Lei forecast that the local economy will grow by 2.3% in the final quarter of the year.

“This growth is expected to lead to a decrease in the unemployment rate by 0.1 to 0.2 percentage points,” he said.

The economist attributes this anticipated growth to the fact that July typically marks the peak season for summer vacations, leading to an overall increase in demand.

He noted, “This may boost labor market performance.”

While the peak tourist season can boost certain sectors, particularly gambling, non-gambling industries may not benefit similarly, Lei added. As a result, these non-gambling sectors face challenges and are considering cost-cutting measures to remain viable. This may include proposing lower wages for employees.

Despite inflation remaining relatively low in the first half of the year, fluctuating between zero and 1%, Lei pointed out that employees in Macau earning only a few thousand patacas monthly face significant financial challenges.

“Without access to the Special Administrative Region government’s social housing support measures, these individuals often struggle to meet their basic needs due to high rent and daily living expenses. Consequently, it is not uncommon for them to live beyond their means, illustrating the financial strain many residents endure in managing their day-to-day lives,” he said.

“From this perspective, living in Zhuhai and working in Macau offers a natural safety net for some grassroots individuals and low-income earners, serving as their primary means of improving their financial situation […] This arrangement allows them to take advantage of lower living costs in mainland Chinese cities like Zhuhai, where rents and daily expenses are relatively low. However, even with this advantage, they often find it challenging to make ends meet,” the economist added.

Strategy to exclude locals from job market

With many companies offering salaries around MOP8,000, only slightly above the minimum wage, a lawmaker has raised concerns that these companies may be using this strategy to effectively exclude local workers from job opportunities.

According to Leong Sun Iok, the majority of non-local workers in Macau are currently concentrated in the catering, services, hotel, and retail industries.

Specifically, the hotel and catering sectors employ over 54,000 non-local workers, while the real estate and business services sectors account for approximately 24,000.

The construction industry employs around 25,000 non-local workers, and the domestic services sector has over 27,000, bringing the total to more than 180,000.

Speaking to the Times, Leong stated that the current number of non-local workers in Macau exceeds the actual demand.

“This indicates that companies may not be able to fully utilize all of the approved non-local worker quotas,” he explained.

Leong provided the Times with an overview of the current employment situation in Macau, noting an emerging trend in the job market.

In recent years, some small- and medium-sized enterprises (SMEs) and restaurants affiliated with large-scale companies have started hiring local employees at lower monthly salaries while offering part-time positions with higher hourly wages.

This shift has attracted some residents to opt for part-time work, as they perceive the pay to be significantly better than that of full-time roles.

However, many of these part-time employees soon find that their actual working hours are insufficient to support their livelihoods. When they request their employers to increase their hours, these requests are often denied.

He cited instances where employees, despite having contracts that specify monthly salaries, were compensated based on hourly rates and actual hours worked, making it impossible for them to achieve a full-time income.

“Since non-local workers are not permitted to take part-time jobs, employers classify them as full-time employees. Consequently, local residents are left with no choice but to work part-time, resulting in inadequate income,” he continued. “In the current employment environment, the proportion of local part-time employees remains high.”

According to him, there are two main types of part-time work: natural and unnatural.

Natural part-time work occurs when residents choose these positions to balance their work, family, or study commitments. In contrast, unnatural part-time work arises when employers are unable to provide full-time positions, compelling local employees to accept part-time roles.

While acknowledging that Macau’s industries are diverse, including services, catering, and retail, he pointed out significant wage disparities across different jobs.

In particular, wages in the construction industry are typically paid on a daily basis, whereas the service industry lacks a standardized pay structure.

However, the rise of industries with a high proportion of non-local workers has led to a suppression of local workers’ bargaining power, Leong said, urging the government to learn from the experiences of neighboring regions, such as Hong Kong, and establish salary reference standards for companies that employ non-local workers.

He believes that this initiative would help ensure that local employees receive adequate working hours and income, thereby preventing the exclusion of local workers through practices that involve lowering wages to hire non-local labor.

The lawmaker further emphasized that the government can enhance its processes related to approving policies for non-local labor. He suggested that the government should create policies that support the hiring of middle-aged and older workers, encouraging companies to consider these demographics in their employment practices.

DSAL: Young job seekers take just 50 days on average to secure employment

The Labour Affairs Bureau (DSAL) reported yesterday that its job-matching efforts from January to June this year successfully matched 5,224 job seekers, with over 50% being young people under the age of 35.

Employment matching data indicates that individuals under 25 require an average of 50 days from registration to securing a job.

For example, the “Career Development Internship Programme” has seen over 1,700 local participants in five years. About 850 of these individuals secured jobs after their internships, with over 600 starting their positions and around 10% receiving promotions.

In terms of employment matching for construction workers, the authorities have contacted over 2,000 job seekers this year, with 957 attending interviews and 506 successfully securing employment.