Harry Dong has sent 30 to 40 job applications. He has landed one interview. The 23-year-old University of Hong Kong student, who graduates in December, has applied across event management, technology and education.
“It’s too hard for us to find a full-time job directly,” Dong said. “Each company has opened only one to three positions because AI has taken the rest.”
His experience matches the numbers. Entry-level vacancies in Hong Kong have fallen 61 percent since 2022, according to a report on the graduate market, and some students are settling for internships in place of full-time work. Government figures released on Tuesday put the drop in graduate-suitable vacancies at about 60 percent over the same stretch.
What employers are doing
Dong believes companies are trimming junior headcount on the assumption that AI can do the work. In his view, quality is not the point. “AI-generated work is inferior to what humans could produce, but this distinction rarely matters to employers,” he said. “Employers had become too pragmatic and believed artificial intelligence could help them save money.”
The government’s projections
The Labour and Welfare Bureau published its mid-term manpower update on Tuesday. It found that AI is changing demand for labor, hitting entry-level and routine administrative jobs hardest, while creating chances for people with technology and interdisciplinary skills.
The bureau estimates AI could lift productivity in affected roles by 20 to 30 percent. Most firms are handling the change through natural attrition, so the near-term risk of mass layoffs is described as fairly low. Even so, between 20 and 30 percent of positions, mostly clerical, are expected to be restructured as routine tasks get automated.
Two groups stand out as exposed: fresh graduates, and about 70,000 clerical support workers aged 45 to 54 who have no post-secondary qualifications. By 2028 the report expects a surplus of roughly 25,000 to 30,000 clerical support workers.
Overall, Hong Kong still faces a manpower shortage of about 130,000 by 2028. The earlier projection was 180,000. Slower growth in labor demand, tied to economic restructuring and AI adoption, explains part of the revision, along with government measures to draw in talent and import workers.
The labor force, not counting foreign domestic helpers, shrank from 3.5 million in 2023 to 3.47 million in 2025, partly because the population is aging. The report sees it sliding to around 3.4 million by 2028. Shortages should be sharpest in innovation and technology, aviation, construction, city operations and healthcare. Skilled technical workers and service and sales workers are projected to make up about 60 percent of the total gap over the next three years.
Secretary for Labour and Welfare Chris Sun Yuk-han said the measures to attract talent and import labor had helped steady the workforce, though demand stayed strong in several key industries.
To respond to the AI-driven shifts, the government plans to work with stakeholders on more retraining, flexible skills-transition courses for middle-aged and older workers, and extra employment support for young graduates. It will also look at ways to encourage employers to retrain the staff they already have.
Sources
- AI reshapes Hong Kong job market as graduate vacancies fall 60pc
- Hong Kong graduate job vacancies fall 61% since 2022 as AI takes entry-level roles
