Challenges in balancing work and childbearing

With economic development and social transformation, the younger generation’s views and considerations regarding childbearing have shifted significantly. In response to persistently low fertility rates, neighboring regions have stepped up efforts to introduce incentive and support measures. The HKSAR Government should likewise keep pace with the times and accelerate the establishment of a comprehensive system to support childbearing.

The costs of bearing and raising children in Hong Kong are high, compounded by the time and opportunity costs of personal development. As society advances, women are increasingly sharing in the family’s financial responsibilities. Yet, the prime years for career growth often coincide with a woman’s optimal childbearing years. When faced with the need to balance career and childcare, many professional women may choose to postpone having children. In addition, the younger generation is more focused than previous generations on ensuring better living conditions for their children. If they believe they lack the time and energy to engage fully in parenting, or cannot provide their children with a good quality of life, education, and other opportunities, their willingness to have children is likely to be affected.

Strengthening family-friendly measures

The 2023 Policy Address introduced measures addressing housing issues and childcare services, such as giving priority to families with children in the allocation of subsidized housing and public rental units - a step in the right direction. However, childcare services remain in short supply, making it difficult for parents to fully engage in the labor market. It is recommended that the government further increase childcare service quotas, allocate them reasonably to meet parents’ childcare needs within their districts, and at the same time encourage more schools to take part in after-school on-campus childcare programs, so that dual-income families can work without worries.

In late July, the central government introduced a new childcare subsidy scheme. Starting January 1, every child — whether the first, second, or third — is eligible to receive an annual subsidy of RMB3,600 until the age of three. Although the Hong Kong government announced in the 2023 Policy Address a one-off cash allowance of HKD20,000 for newborns, on a three-year trial basis, a survey found that nearly 80% of respondents did not find the scheme attractive. As the trial is set to end next year, the government should consider introducing improved measures to further encourage childbirth.

Promoting childbirth is, of course, not something that can be achieved simply by giving out subsidies. Japan and South Korea had already implemented similar policies in the 1990s and 2000s, with subsidy amounts continuing to rise, yet birth rates in both countries have not significantly improved - Japan even hit a record low last year. In addition to subsidies, a family-friendly workplace culture is equally important. Hong Kong’s long working hours are no secret, and they have discouraged some people from having children.

The authorities can further promote family-friendly employment measures for families with children. The government can enhance the appeal of the Good Employer Charter certification to encourage more SMEs to participate in the charter. At the same time, through measures such as subsidies and tax relief, it can encourage SMEs to adopt flexible working arrangements, such as flexible hours and remote work. Drawing from the government’s experience with parental leave, it can provide guidance for businesses to help parents strike a balance between career development and childcare.