The Labour & Welfare Bureau today published its Mid-term Update of Manpower Projection report, predicting that Hong Kong’s overall manpower shortage will narrow from the previous projection of approximately 180,000 to some 130,000 by 2028.
The report indicates that the city’s overall manpower shortage has been alleviated, benefiting from various talent admission and labour importation measures implemented by the Government over the past three years.
Secretary for Labour & Welfare Chris Sun said the mid-term update reflects the Government’s measures have effectively stabilised the labour force.
“However, manpower demand in certain industries remains acute. In response to the job reshaping driven by artificial intelligence (AI), the Government will continue to collaborate with all parties to formulate targeted measures.
“In addition to strengthening retraining mechanisms and providing flexible skill-conversion programmes for elderly and middle-aged employees, we will enhance the employment support for young graduates and explore incentives for employers and employees to engage in on-the-job retraining.
“The Government will adopt a multipronged approach to assist workers at all levels in equipping themselves to step into the new era of AI.”
The report finds that economic restructuring and the adoption of AI adoption have moderated growth in demand for manpower, at the same time as admission schemes have supplemented parts of the labour force. Nevertheless, the manpower situation across most key industries – particularly innovation and technology, aviation, construction, everyday services and healthcare services – remains tight.
About 60% percentage of the overall manpower shortage over the next three years is projected to be concentrated in two categories – skilled technical workers, and services and sales workers. This is due to workforce ageing and difficulties in attracting younger entrants.
Looking ahead to 2028, the overall labour force, driven by continued population ageing, is projected to decrease gradually to approximately 3.4 million even after accounting for various new entrants.
The report includes analysis of the profound impact of AI on the labour market.
Research indicates that adoption of AI in applicable roles will boost individual productivity by 20% to 30%. Companies are currently managing the transition through natural attrition and the risk of large-scale layoffs in the short term remains relatively low. However, approximately 20% to 30% of positions, primarily clerical roles, will face restructuring.
The Government will continue to promote “AI for All” and support lifelong learning, ensuring that skills in the labour force remain aligned with Hong Kong’s future economy.
