Hong Kong Projects Labor Shortage of 130,000 Workers by 2028 Due to Talent Schemes and AI

Hong Kong is projected to face a labor shortage of 130,000 workers by the year 2028, marking a significant downward revision from earlier forecasts. According to reports from the South China Morning Post, this revised deficit is roughly one-third lower than the original projection of 180,000 workers.

Secretary for Labour and Welfare Chris Sun Yuk-han attributed the reduction in the projected workforce gap to a combination of factors. Specifically, the official pointed to the ongoing development of artificial intelligence as well as targeted government initiatives aimed at importing labor and bringing top-tier talent into the city.

The updated findings on the manpower shortfall follow the recent release of Hong Kong's inaugural five-year plan and the annual policy address. Secretary Sun shared the preliminary insights on Thursday, noting that a more comprehensive and detailed study on the updated labor projections is scheduled to be officially announced the following week.

In tandem with these revised workforce estimates, the government has moved to adjust administrative requirements for incoming professionals. Authorities announced that start-up founders who have been approved under the Top Talent Pass Scheme will soon benefit from relaxed rules when it comes time to renew their visas.

Under the new adjustment detailed by Sun, these entrepreneurial visa holders will be exempt from the standard requirement to provide proof of company income during the visa renewal process. Officials stated that this policy change is designed to better support and accommodate tech founders and other innovators building businesses in the city.

The broader strategy to address labor constraints through structured talent importation has been a central focus for the administration. By actively recruiting skilled professionals from outside the region, the government aims to stabilize local industries facing demographic and structural employment pressures.

At the same time, the integration of artificial intelligence across various economic sectors is beginning to alter long-term workforce demand. According to the labour chief, these technological efficiencies have helped moderate the overall volume of additional human labor required to sustain economic growth over the next several years.

While the 130,000 shortfall still represents a substantial hurdle for local employers and industries, the narrowing of the gap offers some relief compared to the more severe 180,000 deficit previously anticipated by official studies.

Business groups and stakeholders across Hong Kong are expected to review the full details of the upcoming manpower study when it is formally released next week to better understand sector-specific impacts and the evolving dynamics of the local labor market.

The administration maintains that its dual approach of leveraging technological innovation and maintaining flexible immigration policies for skilled professionals remains critical to safeguarding the city's economic competitiveness through 2028 and beyond.