Rise in Unemployment following Macau's Junket Crackdown
Rise in Jobless Rate Following Casino Shutdowns in Macau
The dismantling of mass junket operations in Macau has led to an increase in overall unemployment, as expected. Former employees of these operations reported a significant decline in their finances and struggled to adjust and find new jobs. With junkets accounting for a significant chunk of the Special Administrative Region's workforce, it's no surprise that unemployment rates have climbed.
Recently, the Statistics and Census Service reported that the unemployment rates of residents for the period between May and July 2022 were at 5.4%. While this surge in unemployment isn't solely due to the dismantlement of junket operations, COVID-19 restrictions on casinos have undoubtedly played a part. Over 377,000 workers are currently employed in Macau, spread across various sectors.
Employment in gaming and junket activities, hotels, restaurants, and other leisure industries has witnessed a downturn. Consequently, unemployment figures have risen to 15,600 during the latest surveyed period. It's worth noting that most of these newly unemployed individuals were previously employed in the junket or gaming sectors. The number of underemployed workers has also increased, now accounting for 50,600 of the total workforce.
A full-scale recovery to support tourism growth has yet to occur. However, the Macao Government Tourism Office has initiated efforts to promote the SAR to mainland Chinese residents. On the bright side, the Saturday visitation surged to 18,620, a figure not seen since August 3, when travel restrictions from the nearby Guangdong province were lifted.
Tourism Bouncing Back as Concessionaires Face Pressure
In the period between August 20 and August 26, Macau welcomed as many as 103,162 tourists, signaling a rebound in travel. Macau aims to transition from being a gambling hub (for Chinese citizens) to an attractive destination for international tourists and gamblers. However, the SAR's six concessionaires must still meet a minimum revenue threshold, as outlined by the administration.
Skilled labor may be readily available, but Macau's concessionaires must devise strategies to attract more tourists while maneuvering the unpredictability of Beijing's zero-COVID-19 policy. Promotions like "Macau Week" on the mainland should draw more tourists, but Macau must tread carefully to avoid running afoul of these restrictions.
While Macau's concessionaires navigate the challenges of attracting international tourists under Beijing's zero-COVID-19 policy, the dismantling of junket operations has left a significant number of unemployed individuals in the gaming and related sectors. The unemployed, predominantly former junket employees, are struggling to adjust and find new jobs in other industries. The recent rise in unemployment rates is a testament to the importance of the junket industry in Macau's workforce, with over 15,000 residents currently out of work. Despite the surge in unemployment, Macau's tourism industry is gradually bouncing back, with casinos reporting a notable increase in the number of visitors. However, the concessionaires must continue to meet the minimum revenue threshold set by the administration to maintain their operations.
