Introduction It has been noted that the birthrate in Honk Kong has decreased drastically over the years. Arthur points out that Hong Kong’s birthrate had been in the increase over years, that is after II World War but a decrease trend from 1960 onwards had been observed (112). Statistics indicate that the population in 1960 was 36 per 1000 fertile women, a figure that fell to 20 per 1000 by 1970. By the year 2000, the figure had dropped to 8.l and the falling trend seems to be continuing up to now. Several reasons can be attributed to the decline; Urbanization is one of the reasons that has lead to factors like family planning which was not a major concern in the past. Ambrose states that use of contraceptives in Hong Kong start at early age by women (26). Female literacy levels have also influenced the birthrate in Hong Kong as most women put their career first and tend to shun motherhood. Infant mortality is another cause; there are many reported infancy deaths in Honk Kong causing a decline in birthrate. The pension policy is also another factor that has contributed to the decline in population. The Effect of The Low Birth Rate In The Economy The continuous decline in the population will have an adverse effect in the economy if encouraged. There will be less people working for the market and labor creativity will be affected greatly (Brigit 97).The domestic market will be largely hit due to the decrease of labor and creativity and this will greatly affect the foreign investment which is one of the most important sources of income in the economy. The saving ratio will also be less due to low birth rate and this will greatly affect the economy if the government fails to intervene. Measures To Be Taken By the Government To Ensure Enough Supply Of Labor In Future The government, by taking instant action can help save the situation in Hong Kong. Children should be taken as a blessing and the government should ensure that their rights are upheld and protected (Douglas et al . 42). The Amnesty International USA named Hong Kong as one of the places that had recorded continuous low birth rates. It provides that child interest should be taken as first priority as one of the measures to protect them from such acts like child trafficking, war and child abuse (112). The pension service available should be adjusted and the one-child policy done away with. Instead, the government should instead opt for new policies of giving compensation to mothers who give birth to many children and that causes of infancy mortality should be addressed. It should also encourage programs that support working couples with children and provide them with financial support; the programs should also aim at advising couples against the use of family planning services. Henry suggests that the government should adjust its monetary policy which has had a negative effect in the economy and created high number of unemployment and a deflation in the currency (46). Conclusion Regaining the normal birth rate in Hong Kong does not mean that overpopulation will be encouraged as many think. It will instead be a positive measure for the economy of Hong Kong whose labor market depends on the new generation that is now becoming almost extinct