Unhappy underemployed will spark wave of populism
More regulation, nationalism and protection are likely to emerge, posing challenges for markets
In the last few years, I have seen many résumés of excellent financial professionals whose careers are broken.
Until 1997, and the Asian financial crisis, most professionals did rather well in their careers. People had worthwhile jobs and were motivated, hard-working and diligent.
Since that date, exacerbated by 2003 (because of Sars) and 2008 (the global financial crisis), the career paths of financial and other professionals have become substantially less appealing for employees and employers.
We are likely to see … further attacks on high earners and the owners of capital
CVs show one year here, two years there; often in jobs for which they were overqualified and grudgingly underpaid.
This is a global phenomenon, for the impact of technology in destroying and deskilling even very highly paid jobs has been pervasive.
Hong Kong, especially, has seen an influx of well-educated young professionals from overseas seeking fame and fortune in China. They have not necessarily been any more successful than the locals, because they have merely added supply to the revolving-door job market.
Hong Kong's unemployment rate is the envy of the world at 3.1 per cent. And yet there is something not quite right. Wage inflation should be rising fast under these conditions of full employment, but it is about 4 per cent per annum, the same as inflation.
There should be fewer CVs with broken careers and overskilled staff in low-paying jobs. Something is not right when government jobs around the world, not just in Hong Kong (though we provide a notable example), pay significantly more than those in the private sector.
