AI reshapes Hong Kong job market as graduate vacancies fall 60pc

Job vacancies suitable for university graduates in Hong Kong have fallen by about 60 percent since 2022 amid the growing adoption of artificial intelligence, according to the government's updated manpower projections released on Tuesday.

The Labour and Welfare Bureau's mid-term update found that AI is reshaping employment demand, particularly for entry-level and routine administrative positions, while creating new opportunities for workers with technological and interdisciplinary skills. 

The report estimates that AI could increase productivity in affected roles by 20 to 30 percent. Businesses are currently managing the transition largely through natural attrition, keeping the short-term risk of large-scale layoffs relatively low.

However, between 20 and 30 percent of positions, mainly clerical roles, are expected to face restructuring as companies increasingly automate routine tasks.

Two groups are particularly exposed to these changes: fresh graduates entering the workforce and about 70,000 clerical support workers aged 45 to 54 without post-secondary qualifications. 

Despite the changing employment landscape, Hong Kong is still expected to face an overall manpower shortage of approximately 130,000 by 2028, down from the previous projection of 180,000.

The revised estimate reflects slower growth in labor demand resulting from economic restructuring and AI adoption, alongside government measures to attract talent and import workers.

Hong Kong's labor force, excluding foreign domestic helpers, fell from 3.5 million in 2023 to 3.47 million in 2025, partly because of population aging.

The report projects that the labor force will decline further to around 3.4 million by 2028. 

Manpower shortages are expected to remain particularly pronounced in innovation and technology, aviation, construction, city operations and healthcare.

By occupation, skilled technical workers and service and sales workers are projected to account for about 60 percent of the overall shortage over the next three years.

In contrast, the increasing use of AI for routine administrative work is expected to result in a surplus of approximately 25,000 to 30,000 clerical support workers by 2028. 

Secretary for Labour and Welfare Chris Sun Yuk-han said measures to attract talent and import labor had helped stabilize the workforce, although demand remained strong in several key industries.

To address AI-driven changes, the government will work with stakeholders to strengthen retraining opportunities, offer flexible skills-transition courses for middle-aged and older workers, and provide additional employment support for young graduates.

It will also explore measures to encourage employers to retrain existing staff, helping workers adapt to changing job requirements.

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓