Judy Wai-Teng Wong

Type of the article: Research Article

Abstract
As a small and open economy, Macao, a Special Administrative Region (SAR) of China, faces challenges such as labor shortage, talent competition, and economic diversification. This case study aims to examine how Macao’s long-standing labor importation system has shaped talent policy and constrained economic diversification within the city’s institutional and socio-economic context. This study adopts a qualitative-descriptive empirical case study design based on document analysis, descriptive statistics, and contextual analysis of selected Policy Addresses from benchmark years corresponding to specific socio-economic changes. The findings show that non-resident workers accounted for 41% of Macao’s labor force in 2019, but the share of professional non-resident workers remained consistently low at 3%. The number of non-resident workers declined from 196,538 in 2019 to 154,912 in 2022 but rebounded to 183,679 in 2025. Macao introduced a talent recruitment system only in 2023, and 750 people were approved in the first two phases. Policy emphasis on local talent cultivation was accompanied by an increase in residents with tertiary education from 19% to 31%, but relatively weak early-career earnings and limited career choices remained. The 2024 rebound in the economic share of the gaming industry to 43.3% indicates uncertain diversification progress. This study concludes that labor importation, local human capital development, and talent recruitment should be integrated into a talent policy package to support economic diversification.