AI moderated growth in manpower demand, but also reduced job vacancies for fresh graduates
The deployment of artificial intelligence (AI) tools in Hong Kong's workplaces is reshaping demand for workers, as the financial hub braces for a slightly eased shortage of employees.
Hong Kong's Labour and Welfare Bureau released an update to its manpower projection, indicating that the projected overall shortage of workers by 2028 has narrowed from approximately 180,000 to 130,000.
Labour and Welfare Secretary Chris Sun attributed the development to the government's measures over the past three years.
"This mid-term update reflects that talent admission and labour importation policies have effectively stabilised the labour force and alleviated the overall manpower shortage," Sun said.
The government report also indicated that AI adoption and economic restructuring in Hong Kong had a hand in moderating the growth in manpower demand.
AI adoption in Hong Kong
Workplaces in Hong Kong are already entering a "new phase of AI adoption," as the technology becomes an integral part of employees' everyday work.
Recent findings from the Hong Kong University of Science and Technology (HKUST) showed that 72.7% of workers are already using AI at work on a daily or weekly basis, with generative AI tools being the most widely used technology.
The top uses of the technology include assisting staff in drafting and organising documents, summarising and analysing information, and supporting creative ideation and content development.
"The findings suggest that Hong Kong workplaces are entering a new phase of AI adoption, where AI is increasingly becoming part of employees' daily work rather than an emerging technology on the horizon," said Tam Kar-Yan, HKUST Vice-President for Administration and Business and Chair Professor of Information Systems, Business Statistics and Operations Management.
Tam, however, pointed out that employees feel both optimism and concern towards AI.
"On the one hand, they recognise its potential to enhance productivity, improve work quality, and create opportunities. On the other, many are concerned about the risk of skills becoming outdated and the implications for job security," he said.
How is AI impacting jobs?
The government's mid-term manpower projection indicated that companies adopting AI are currently managing the transition through natural attrition.
It added that the risk of large-scale layoffs in the short term "remains relatively low."
It noted, however, that approximately 20 to 30% of positions, particularly clerical roles, will face restructuring, affecting entry-level employees and middle-aged clerical support workers.
According to the report, the displacement of entry-level positions has already reduced the number of job vacancies for fresh graduates by approximately 60% compared with 2022.
Middle-aged clerical support workers, aged between 45 and 54 years, without post-secondary education are also facing transition pressure.
The report said the adoption of AI for routine administrative tasks will create a manpower surplus of approximately 25,000 to 30,000 among clerical support workers by 2028.
'Multipronged approach' from government
Sun said the government will continue collaborating with employers and employees to formulate "targeted measures" addressing the impact of AI on the job market.
"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," Sun said.
"The Government will adopt a multipronged approach to assist workers at all levels in equipping themselves to step into the new era of AI."
Overall, Hong Kong's manpower situation across most key industries remains "tight" despite a slight easing of the overall shortage.
The manpower shortage over the next three years is expected to be concentrated among "skilled technical workers" and "services and sales workers," which account for about 60% of the overall shortage.
