The numbers say 1.6%; the streets say otherwise

Yuki Lei

With International Labor Day approaching, several Macau legislators used Tuesday’s Legislative Assembly session to voice concerns over labor rights and employment — particularly the principle of prioritizing local residents. While one lawmaker linked youth unemployment to skills mismatches and inequality, the real drivers of the issue may not lie entirely with the authorities.

Official data shows Macau’s unemployment rate fell to 1.6% overall and 2.1% for local residents in the first quarter of 2026 — figures that appear impressive on paper. But beneath them lies a more troubling reality.

Take underemployment. The number of people who have jobs but cannot secure enough working hours is rising, concentrated in transport and storage, real estate, commercial services, and retail — sectors where shrinking demand and compressed working hours have left many struggling to make ends meet.

Lawmaker Leong Sun Iok cited an International Labour Organization report warning that generative AI and an aging workforce are accelerating skills mismatches and employment inequality. He pointed to the “mismatch between education and employment” as a root cause.

Yet social media tells a very different story. Across online platforms, residents describe a harsh “perceived reality”: severe hidden unemployment, mounting difficulties for young job seekers, and persistently low wages. Some reject the notion that “local unemployment and underemployment have nothing to do with foreign workers” as completely out of touch. Critics describe an “invisible unemployment crisis,” claiming even master’s and PhD graduates struggle to find jobs, with starting salaries barely above MOP 10,000 — while entry-level cleaning staff earn just over MOP 7,000, barely enough to cover rent.

Street recruitment ads routinely offer local staff just a few thousand patacas. In Macau’s expensive rental market, the question is no longer isolated: can such wages sustain a basic living?

For some, cross-industry transition remains a near-impossible hurdle. For others who do manage to switch, the pay gap is often shocking — many cannot comprehend the sharp drop in salary compared to their previous roles. Some have even suggested the Labour Affairs Bureau should lead calls for wage cuts — a proposal that misses the point entirely.

Meanwhile, HR firms warn that “job-locking” — workers holding onto positions while quietly seeking others — is on the rise. Many dare not switch jobs, while others face industry transition difficulties. The real story may not be unemployment rates, but whether those employed can earn a decent, stable living.

As society debates “unreasonable wages,” a fundamental question emerges: who defines “reasonable”? When a large segment of the local workforce remains trapped in low-wage cycles, underemployment, or industry transition dead-ends — unable to accept dramatically lower pay or find viable alternatives — should authorities and society re-examine what constitutes a fair wage standard?

A low unemployment rate based solely on data cannot mask the reality of workers who “have jobs but cannot make ends meet.”

The answer is not for the authorities to lead calls for wage cuts. What is needed is genuine reflection on how to establish a wage benchmark that allows local workers to live with dignity while preserving corporate competitiveness. Without that, the so-called “employment recovery” risks being nothing more than a statistical illusion.