Hong Kong labour shortage forecast narrows to 130,000 by 2028
Hong Kong's fourth-term Human Resources Planning Committee met on 5 October 2026, noting a slight rise in unemployment to 3.8 per cent and a narrowing labour shortage forecast of about 130,000 by 2028. The government plans to add AI-related categories to its talent list and expand youth employment s
The fourth-term Human Resources Planning Committee held its seventh meeting on 5 October 2026, with the Census and Statistics Department reporting on the latest labour, employment and population conditions. Due to population ageing and other factors, Hong Kong's overall labour force participation rate is declining, though it has been alleviated by various talent attraction and labour import measures.
Committee members noted that the seasonally adjusted unemployment rate edged up from 3.7 per cent in May to July 2026 to 3.8 per cent in June to August 2026, with youth unemployment a concern. Members acknowledged that rising unemployment and youth joblessness are structural challenges facing most advanced economies, including Hong Kong. They welcomed the government's continued investment in education and skills training, including a three-year, 30,000-youth job and internship programme announced in the 2026 Policy Address, and the Labour Department's upcoming 'Youth Employment Connect' online portal to provide training and employment support.
The Labour and Welfare Bureau presented an interim update to its manpower projection report, which found that thanks to talent attraction and labour import measures over the past three years, Hong Kong's labour shortage is expected to narrow from about 180,000 to about 130,000 by 2028. Demand for emerging artificial intelligence (AI) experts, particularly 'compound talent' with AI application and cross-disciplinary skills, is rising. The government will adjust measures accordingly, including strengthening local training and optimising talent import policies, and will promote 'AI for All' and lifelong learning to align workers' skills with the future economy.
The first five-year plan for Hong Kong, released last month, states that the government will closely monitor labour supply and demand while protecting local workers, and dynamically adjust the types and numbers of imported labour. The Labour and Welfare Bureau will soon begin a new review of the talent list, incorporating the latest industry developments and manpower needs, including adding more AI-related talent categories. Members expressed support for continuing to monitor the labour market and develop forward-looking manpower policies that balance local worker priority with labour supply for economic development.
Members also heard from the Innovation, Science and Technology Bureau on the latest progress of Hong Kong's new industrialisation, covering overall strategy and key measures to drive industrial transformation, accelerate mid-stream technology transfer, and support downstream industries. The plan aims to stabilise traditional industries through technological upgrades, expand emerging industries, position for future industries, and strengthen producer services. Members endorsed the work, expecting it to consolidate Hong Kong's competitive advantages and promote sustainable economic development.
