The construction industry in Hong Kong is grappling with a significant downturn in labour demand, a shift linked to ongoing economic contraction and questionable government forecasts regarding future infrastructure development.
Last June, the Hong Kong government unveiled a labour importation scheme aimed at addressing an alleged shortfall of 15,000 to 20,000 workers in the sector. Officials warned that without intervention, this shortage could balloon to 40,000 by 2027, jeopardizing critical infrastructure projects and overall economic stability.
However, as large-scale construction projects have failed to materialize over the past year, the anticipated demand for workers has dwindled, leaving many in the industry facing a surplus of labour. The Development Bureau initially focused on public works contracts exceeding HK$1 billion for the scheme, targeting 29 types of skilled workers and 18 technical and supervisory roles. Applicants were mandated to conduct local recruitment for at least four months before seeking foreign labour, a requirement aimed at demonstrating the inability to fill roles domestically.
Despite the rollout of a regular quarterly application process for foreign workers, the construction sector is witnessing troubling trends, including wage reductions, unpaid leave, and even instances of unpaid wages. As these challenges mount, industry representatives have urged the government for support, leading officials to announce the suspension of the labour importation scheme for the construction industry.
The abrupt shift in the sector’s landscape raises questions about the accuracy of government assessments and the future of infrastructure development in Hong Kong. With the construction industry facing such unprecedented challenges, stakeholders are left to navigate an uncertain path ahead.
