Hong Kong's construction industry is facing a unique labor supply-demand challenge. The Hong Kong Special Administrative Region (HKSAR) government is leveraging a combination of measures, including dynamic labor importation, enhanced local training, and sustained investment in public infrastructure, to tackle the issue.
The HK Census and Statistics Department recently reported that the unemployment rate in the construction industry increased from 6.9% to 7.2% between July and September 2025. This rise, despite ongoing government infrastructure projects, has raised public concerns. Many question why labor importation is still necessary when unemployment remains high.
According to Bernadette Linn, Secretary for Development, the rise in unemployment is mainly attributed to a slowdown in private-sector construction projects, which has resulted in decreased demand for general laborers and certain skilled trades.
Linn said that the construction industry is distinguished by its reliance on over 140 highly specialized trades, with labor demand fluctuating depending on the project phase. For instance, early-stage trades such as steel rebar bending, formwork carpentry, concrete pouring, and painting are currently in lower demand due to the slowdown in private-sector construction. Meanwhile, demand for mechanical and electrical trades has increased, as more projects are now in later stages.
She stressed that to address labor shortages in specific trades, the government has adopted a labor importation program under strict controls, ensuring no disruption to ongoing projects while prioritizing local workers.
In the latest (ninth) round of applications, 986 imported labor quotas were approved, all for trades experiencing acute shortages, such as air-conditioning and fire-fighting equipment technicians. The total number of approved quotas has dropped from 8,016 in Q2 to 7,332 this quarter, remaining well below the program's cap of 12,000. This reflects the program's flexibility in aligning with market conditions.
She also pointed out that to support unemployed general workers and underemployed skilled workers, the Construction Industry Council has rolled out enhanced training programs aimed at equipping workers with in-demand skills. For example, general workers are trained to become "intermediate" or "senior" workers, focusing on high-demand trades, while skilled workers acquire additional trade skills, enhancing their adaptability. The programs are expected to benefit 4,000 workers, with strong support from trade unions and industry chambers.
While private-sector projects have slowed, the government has maintained high levels of public infrastructure expenditure, increasing the average annual budget from HK$90 billion to HK$120 billion over the next four years. An additional HK$30 billion has been set aside for small and medium-sized projects such as pipelines, streets, and docks.
With the anticipated recovery of the private market, the outlook for HK's construction industry remains robust. The government plans to continue its multi-pronged strategy by enhancing local training, promoting technological adoption, and implementing precise labor importation to address short-term fluctuations in demand.
(Journalist: Zara; English Editor: Zoey SUN)
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