The impact of urban renewal to the labour force in Hong Kong

Purpose - This paper seeks to examine the contributions of rehabilitation and redevelopment projects to the labour force of the construction industry in Hong Kong. Major projects from the private and public sectors were critically examined and the manpower requirements and the tangible benefits in terms of wages arising from urban renewal were forecast. Design/methodology/approach - The forecast of the expected persons to be engaged in the construction industry is based on trend regression model. Time series data of construction sites, both private and public, and persons engaged in the past ten years were forecasted for linear trend process for the next three years. From this, a reasonable estimate of man-days to be engaged and wages to be incurred in the construction industry in the future can be obtained. Findings - The results provide evidence that the impacts are positive. About 19.4 million man-days and an income of HK$16.4 billion (3.8 per cent of the nominal GDP of Hong Kong in 2008) are anticipated in the short run. To meet urban regeneration needs, the Government should develop various vocational skills and enhance motivation and job search. Research limitations/implications - There are potential risks of error arising from the use of assumptions, limited sample size and data from the secondary resources. Practical implications - Urban renewal works can generate more jobs. The ratio of development projects to rehabilitation works in terms of producing job opportunity by the same amount of budget is about 1 to 4.7. To meet urban regeneration needs, the Government should develop various vocational skills and enhance motivation and job search for renewal works. Social implications - Urban renewal attracts and stimulates investment, creates employment opportunities and improves the built environment of cities. Also, public rehabilitation works can play a moderate role in stabilizing the economy and the labour market. Originality/value - The major contributions of this paper are: the estimated labour and financial resources to undertake such renewal works; and the more significant impact of rehabilitation work identified.