Hong Kong is expected to face a manpower shortage of 180,000 workers by 2028 amid an aging population and a transforming economy, with skilled technical workers making up the greatest deficit.

Secretary for Labour and Welfare Chris Sun Yuk-han said the government will enhance training for local talent while continuing to import talent and labor "at an appropriate scale" to meet imminent needs.

"There will be severe manpower shortages in Hong Kong in the next five years," Sun said.

"The government will enhance and expand local training to preserve the competitiveness of the local workforce amid the rapidly changing market."

His statement came as the Labour and Welfare Bureau published its latest manpower projection report yesterday, which revealed an overall labor shortfall of 50,000 workers last year while projecting that the shortage would swell to 180,000.

The report covered the labor situation in 17 industries - including innovation and technology, construction, transport, retail, tourism and health services - as well as four groups - one comprising managers, supervisors and professionals followed by respective groups for service industry workers, skilled technical workers and manual laborers.

It found that Hong Kong lacked 10,000 skilled technicians last year while the shortage is projected to exceed 60,000 workers in 2028, accounting for over one-third of the total shortage for the year.

"Hong Kong`s economy is projected to grow by 3.2 percent annually during the projection period, driving high demand for manpower," Sun said. However, he said the aging population and lack of new entrants in the industry made the local manpower supply fall short of meeting the rising demand.

According to the report, about 500,000 workers were aged 60 or above last year, and among them, about 104,000 were skilled technical workers and 102,000 were manual laborers. "In the next five years, they would gradually retire and leave the labor market, leaving a huge gap," Sun said.

Among industries, construction is expected to face a shortage of over 45,000 workers, followed by a shortage of 40,000 in city operation by 2028.

The labor supply is also projected to fall short in the innovation and technology sector as well as industries related to Hong Kong`s transformation into an aviation hub, with both areas lacking between 18,000 to 23,000 workers.

Sun said digitization and the development of AI will have a significant impact on the labor market, and that the labor force will be required to master new skills in e-commerce and AI applications.

DAB lawmaker Frankie Ngan Man-yu said the report laid the foundation for a future manpower strategy, and suggested that local universities and colleges adjust their subjects and student quotas for different professions based on the report.

Ngan urged the government to update the talent list to inform educational institutions and overseas markets about Hong Kong`s talent demands.

He also hoped the government could simplify the application procedure for labor import schemes.