Hong Kong workforce to shrink by 20,000 yearly as key sectors face shortages

Hong Kong's workforce is expected to decline by around 20,000 individuals annually until 2028, according to a government report on manpower projections. Despite efforts to import labor and talent, critical shortages persist, particularly in skilled technical fields such as innovation, aviation, construction, city operations, and healthcare.

Acting Secretary for Labour and Welfare Ho Kai-ming stated that while the predicted manpower shortfall will narrow to 130,000 by 2028, key industries will continue to face workforce crunches. The decline is attributed to economic transformation, AI adoption, and labor importation measures. Unemployment remains elevated, with the latest rate at 3.8%, and many unemployed individuals struggle to secure new positions due to retraining or attitude changes.

The report predicts a workforce drop from 3.47 million in 2025 to 3.4 million in 2028, with the number of workers aged 25-34 declining by 64,000 over three years. Mismatched job requirements and expectations among jobseekers have worsened, with 30% of the unemployed remaining jobless for six months or more. Skilled technical workers and manual laborers account for roughly 40% of the total shortfall, driven by rising education levels and workforce aging.

Lawmaker Lam Chun-sing called for policy reviews and safeguards for local workers, emphasizing the need for stronger controls on foreign hiring ratios and prioritizing local graduates.