Repositioning Hong Kong: Why HR and Recruitment professionals need to be part of the change

In my previous article, Repositioning Asia’s world city: Hong Kong’s shift from Greater China focus to global relevance, I explored how Hong Kong’s challenges stem from shifting priorities and its evolving role within the Greater Bay Area. While much of the focus has been on governmental and systemic issues, it’s equally important to recognise the role that those working in HR, recruitment, and people management play in shaping the city’s future.

Hong Kong is at a crossroads. Facing a shrinking working-age population, language skill shortages, and evolving industry demands, the city’s talent landscape is in flux.

At a working level In HR & Recruiting our actions—or inactions—have profound impacts on talent availability, workplace culture, and Hong Kong's global competitiveness.

The good news? We hold the keys to meaningful change.

Before I go into some of the ways I believe we can make an impact, I would like to share some key data points that contextualise the problem the “Hong Kong Workforce plan” faces.

As with any good workforce plan, let’s look at supply & demand (or you can skip it and read the TL:DR summary after the bullet points):

Supply challenges:

1. Limited global talent pool The global working age talent pool of trilingual professionals in white collar professions is estimated at just 8-10m – Statista
2. Aging population By 2038, 40% of the HK population will reach retirement age – HK Government
3. Declining attractiveness as a destination Hong Kong fails to rank in the top 20 globally or any regional ?top 10 as a preferred relocation destination – ‘Remitly’
4. Low birth rates For the past five years, Hong Kong’s annual birth rate has remained stagnant at approximately 31,000—a trend that threatens long-term workforce sustainability – Hong Kong Government
5. Returning talent trends Since 2019, 30,000 BNO holders who left Hong Kong have returned. Additionally, 20% of those who left are actively planning to return, 45% expressing an interest in doing so – YouGov

Demand challenges:

1. Global market access via Hong Kong A staggering 92% of Chinese firms aim to access global markets, and 64% of them prefer Hong Kong-based firms due to the city’s high education standards, strong English proficiency, and internationally educated talent base – McKinsey
2. Investment in emerging industries Significant investment from GCC andSaudi Arabia are flowing into Hong Kong’s AI and Web3 enterprises, creating demand for specialised talent.
3. Expanding logistics and infrastructure The logistics sector is growing rapidly, fueled by the Greater Bay Area hub and the development of Hong Kong’s airport, including the completion of its third runway.
4. Growth in Wealth Management Growing family offices and wealth funds, with government initiatives to attract commodities business, especially gold.
5. Healthcare talent shortages As of July 1st , Hong Kong’s healthcare sector faces a 25% staffing shortage, and expected to rise with retirements – Department of Health
6. Widespread talent shortages A striking 75% of business leaders in Hong Kong report difficulties in addressing talent shortages, with the city experiencing a net loss of 300,000 working-age individuals since 2022 ?– HK Government
7. Government investment in innovation hubs Metropolis, Science & Technology Park, and Cyberport to drive innovation and create new employment opportunities.
8. Demand for Trilingual Professionals Two-thirds of job postings in Hong Kong now require candidates proficient in English, Mandarin, and Cantonese—a skillset becoming increasingly scarce – LinkedIn

?In summary:

Hong Kong has a declining overall working age population, a rapidly shrinking tri-lingual and/or Cantonese speaking skilled worker base and roughly 10 years to seriously address these issues.

At the same time, most roles being advertised require languages less and less people speak (English standards have declined and the Cantonese language base is shrinking). We are also not producing the skills required in Hong Kong or attracting enough people in.

It probably explains why the HK Government estimates there is currently a 180,000-worker shortage across all industries and are recommended to “import outside talent and labour at an appropriate scale to meet imminent needs.” – Chris Sun, Secretary for Labour and Welfare

However when said candidates (AKA people) arrive, as one SCMP journalist put it “where are the jobs?”

What’s the issue and how can HR & Recruitment play its part:

The truth is, we HR and recruitment professionals are often part of the problem—sometimes unintentionally.

HR and recruitment professionals must tackle outdated practices, enhance international recruitment, and modernise workplace cultures. These steps are not just necessary—they are urgent.

The net result is the following are not setting up Hong Kong companies up for success:

• Job architecture
• Interview & application processes
• Workplace culture
• International recruiting efforts

I feel positive though, because as professionals, we hold the keys to meaningful progress.

In my next article, Repositioning Hong Kong: How HR & Talent Acquisition Professionals Can Make an Impact, I’ll delve into practical strategies for addressing the talent challenges facing Hong Kong.

If you want to book a call to discuss new ways if approaching your recruitment strategy – contact me directly via inbox, or using my booking link

Jay Minns is a workforce solutions expert with extensive experience helping businesses navigate talent acquisition and workforce management challenges across the Asia-Pacific region.

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