Morning Edition · Saturday, September 19, 2026Published at 1:10 AM EDT · New York
Employers warn the Hong Kong pilot scheme will raise wages for domestic helpers and price care out of reach for low-income elderly residents.

Japan now has a record 100,000 residents aged over 100, according to Al Jazeera's account of the government's annual count. Fewer births and a shrinking working-age population are placing sustained pressure on a social care system that depends on paid labour to function.
Hong Kong is confronting the same arithmetic with a policy experiment. A pilot scheme will admit foreign domestic carers specifically for elderly residents. Employers and placement agencies warn that the new category will compete for the same pool of workers as the existing domestic helper market, raising wages across both and putting care beyond what low-income older residents can pay.
Both cases describe the same constraint. An ageing population needs more care hours than the domestic workforce can supply at current wages, so the choice is between importing labour, paying much more for it, or rationing care. Governments across East Asia are making that choice now, under fiscal conditions that have already tightened as interest rates have risen.
What this means
Care is labour that cannot be automated at scale or moved offshore, so an ageing society must either import workers or accept persistently rising service prices. That keeps services inflation in Japan, South Korea, Hong Kong and Taiwan from falling below a certain level, which complicates the task for every central bank in the region trying to judge how much of current inflation is cyclical. Fiscal pressure builds at the same time, because pension and health spending grows against a shrinking tax base exactly when higher interest rates have made deficit financing more expensive.
What to watch
Observations to monitor, not financial advice.
Synthesized from: Al Jazeera · South China Morning Post
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