Construction sector faces 7.2pc unemployment amid project shortages and foreign labour debates

Hong Kong's construction sector is confronting a severe unemployment crisis, with the industry's jobless rate climbing to 7.2 percent between May and July 2025—markedly higher than the citywide average of 3.7 percent.

Industry representatives attribute the sharp rise to a steep decline in private development projects and the adoption of new construction technologies that have reduced demand for local labor.

Chau Sze-kit, representing the Construction Industry Employees General Union, reported an 80 percent year-on-year drop in new project volume.

Many construction workers are now struggling to find consistent work, with some securing only about 16 days of employment per month, said Chau.

According to the unionist, older and low-skilled employees have been hit hardest, with little hope for improvement without government action or a rebound in private development.

Simon Liu Sing-pang, president of the Hong Kong Construction Association, emphasized that the unemployment situation stems largely from structural changes. These include the relocation of manufacturing processes to factories on the mainland and a persistent shortage of new projects.

Liu acknowledged that foreign workers—who make up roughly three percent of the local construction workforce—play a key role in keeping projects on schedule. He stressed that these workers are generally highly skilled and do not significantly contribute to local unemployment.

Liu called for expanded multi-skilled training programs to help workers adapt to industry transformation.

Chau, however, challenged that perspective, contending that the growing use of foreign labor on government projects has worsened unemployment by limiting job opportunities for local workers.

He urged officials to conduct a more accurate assessment of labor needs and increase investment in retraining programs, arguing that most trades currently have sufficient local workers and do not require imported labor.

With the sector’s outlook remaining weak without major new projects or policies that better protect local workers, both leaders agree that long-term solutions will require improved training efforts and technological adaptation to enhance the competitiveness of Hong Kong’s construction workforce.

(Anson Luk)