As Macau’s tourism industry continues to recover, the gaming sector has experienced notable changes in both employment and wages over the past year. According to recent data released by the Statistics and Census Service (DSEC), the average wages of gaming industry employees increased by 8.2% year-on-year to MOP$26,750 in the three months leading up to June 30, 2024. This increase reflects a broader trend of economic recovery in Macau, driven by the resurgence of inbound tourism.
Wage Increases: A Sign of Recovery
One of the most significant insights from the DSEC report is the rise in wages across the gaming industry. Specifically, the wages of dealers—who represent a substantial portion of the workforce in casinos—climbed by 6.5%, reaching an average of MOP$21,660. This growth in wages indicates a positive trend for employees in the gaming sector, suggesting that the industry is recovering from the downturn caused by the COVID-19 pandemic.
However, despite these gains, there is still a gap compared to the pre-pandemic period. The industry’s current state, including wage growth, reflects ongoing efforts to return to pre-pandemic levels of operation and profitability.
Employment Landscape: Modest Growth Amidst Ongoing Challenges
In addition to wage increases, the gaming industry has seen a modest rise in employment. The total number of full-time employees reached 52,518 by the end of June 2024, marking an increase of 825 people, or 1.6%, from the previous year. While this growth is a positive sign, it is important to note that the industry is still operating with 5,322 fewer employees compared to the same period in 2019.
This discrepancy highlights the challenges that Macau’s gaming sector continues to face as it strives to regain its footing in the global market. The pandemic’s impact is still evident, and the journey to recovery appears to be a gradual process.
Rising Vacancies: A Reflection of Increasing Demand
With the steady increase in inbound tourists fueling the recovery of tourism-related industries, there is a growing demand for manpower in the gaming sector. At the end of the second quarter of 2024, there were 498 vacancies within the industry, a year-on-year increase of 385 positions. This represents a substantial rise of nearly 640%, underscoring the heightened need for staff to meet the demands of a recovering market.
This surge in vacancies also suggests that while the industry is experiencing a rebound in activity, it is struggling to attract enough workers to fill open positions. This shortage of labor could be due to several factors, including changes in the labor market, shifts in worker preferences post-pandemic, or even competition from other sectors that are also recovering.
Dealer Numbers: A Slight Decline in a Key Workforce Segment
Despite the overall increase in employment, the number of dealers—who are crucial to the operation of casinos—has seen a slight decrease. As of the end of June 2024, there were 23,467 dealers employed in Macau’s gaming industry, down by 208 from the previous year, representing a decrease of 0.9%. Furthermore, this figure is down by 1,746 compared to 2019, highlighting a significant reduction in the dealer workforce over the past few years.
This reduction could be attributed to various factors, including a natural attrition rate, the lingering effects of the pandemic, and perhaps even changes in job attractiveness or working conditions within the sector.
Hiring and Turnover Rates: A Mixed Bag
The industry has also seen changes in its hiring and turnover rates. There were 1,492 new hires and 1,143 departures among gaming employees by the end of Q2 2024. This resulted in an employee hiring rate of 2.9%, which is up by 1.0 percentage points from the previous year. On the other hand, the employee turnover rate decreased slightly by 0.2 percentage points to 2.2%.
These figures suggest that while the industry is managing to hire more staff than it did a year ago, it is also seeing fewer people leave their jobs. This could indicate improved job satisfaction or better retention strategies by employers in the gaming sector as they strive to stabilize their workforce amid ongoing economic recovery efforts.
Looking Ahead: Challenges and Opportunities
The data from the DSEC highlights both the progress and the challenges facing Macau’s gaming industry. The increases in wages and employment are encouraging signs of recovery, yet the significant number of vacancies and the decline in the number of dealers indicate ongoing hurdles. As the industry continues to rebound, there will likely be continued efforts to attract more workers, improve working conditions, and ensure that the sector can fully capitalize on the renewed flow of tourists to Macau.
Macau’s gaming industry is on a path of recovery, marked by wage growth and rising employment. However, the road ahead remains complex, with the need for a stronger workforce and a return to pre-pandemic levels still in sight. The coming months will be critical in determining how well the industry can address these challenges and seize the opportunities presented by a revitalized tourism sector.