Labour shortage eases, but entry-level jobs hit by AI

The Hong Kong government aims to assist workers across all skill levels in adapting to the rise of artificial intelligence (AI) as the technology gains prominence, but recent data shows a decline in entry-level jobs, particularly for fresh graduates, due to AI's impact. Acting Secretary for Labour and Welfare Ho Kai-ming discussed the situation while acknowledging the ongoing shortage of workers, which has eased thanks to immigration and labor importation measures.

The Mid-term Update of Manpower Projection projects a shortfall of 130,000 workers by 2028, down from an earlier estimate of 180,000, mainly due to an aging population. Construction is expected to face the most significant labor shortage, followed by city operations and healthcare. Of the projected shortfall, skilled technical workers and those in services and sales are most at risk, as these roles involve interpersonal interactions and complex craftsmanship, making them less replaceable by AI.

In contrast, clerical support roles, which have seen a 60% drop in vacancies for fresh graduates since 2022, are projected to have a surplus of workers by 2028. The report also highlights a growing demand for AI experts, particularly those with both AI skills and sector-specific knowledge. Ho emphasized the government's commitment to helping workers at all levels upgrade their skills to align with Hong Kong's future economy.

Despite the technology's potential to boost productivity by 20-30%, AI could replace jobs in import/export and finance trades by the same percentage. However, services and sales staff, as well as skilled technical workers, might find it more challenging to be made redundant by AI, but this also means these sectors will struggle to fill positions due to the high prevalence of post-secondary education among jobseekers in the region.