Thousands more workers needed
The openings this year of the Studio City resort in Macau and the debut of Phase II of Galaxy Macau could cause a labor shortage in the city, even as gaming revenues contract.
According to the Macau Business Daily, the gaming mecca will be looking for thousands of additional workers this year. With unemployment at 1.6 percent, analysts say labor costs are likely to soar as operators try to retain their staff.
The dual openings could create up to 18,000 new positions this year?by some calculations an expansion of more than 31 percent. That could make the cost of labor rise 10 percent to 15 percent. In late 2015 through 2016, three more resorts will open on the Cotai Strip: Las Vegas Sands’ Parisian; Wynn Resorts’ Wynn Palace on Cotai; and MGM Cotai.
“For 2015-2017, we expect wage inflation (including bonuses) will remain high at around 15 percent per year,” said Deutsche Bank research analyst Karen Tang. “We think new casinos will offer higher pay to attract the well-trained and experienced staff from competitors to work for them.”
Last week, Lawrence Ho Yau Lung, co-chairman of Melco Crown Entertainment, said Studio City alone expects to recruit up to 10,000 workers. He said he’s “a bit worried” about the demand for labor in a city with low unemployment.
Analysts say labor demand will peak this year and in the first half of 2016.
