Lingnan University's study shows 40 per cent of job vacancies in Hong Kong in traditional service industries Rise in gig employment amid lagging adoption of advanced technologies

The world is paying attention to the impact of the trade war on various industries, and Lingnan University recently published a report titled "Data-Driven Job Search: Big Data Series Report on Hong Kong's Employment Market", analysing the employment risks and potential challenges in Hong Kong's labour market. This study used Artificial Intelligence (AI) models to examine more than 140,000 job advertisements in Hong Kong, suggesting that over 40 per cent of job vacancies are in traditional service sectors such as import-export, wholesale and retail, which are vulnerable to external environmental factors. While the strong trend of gig work in the retail industry accounts for approximately 20 per cent of positions, there is little demand for advanced technologies like AI, with less than two per cent of vacancies requiring such skills. The research team proposes that the government should assist workers in traditional service industries with their transitions, and provide targeted cross-industry skills training to improve employment competitiveness in the context of the present trade war economy.

The study was led by Prof Pun Ngai, Chair Professor of the Department of Cultural Studies at Lingnan University, and team members included Prof Song Xinmiao, Research Assistant Professor of the Lingnan University Creative and Cultural Innovation Research Institute; Prof Zhou Yang, Research Assistant Professor of the Department of Cultural Studies at Lingnan University; Prof Chen Anfan, Research Assistant Professor of the Department of Communication Studies at the Hong Kong Baptist University; Prof Jin Shuheng, Assistant Professor of the Department of Social Work at the Guangdong University of Technology, and Mr Qian Zhongkai from the College of Humanities and Development Studies at the China Agricultural University. The researchers systematically selected ten high-traffic job platforms in Hong Kong, collecting 142,901 genuine job advertisements posted between 1 December 2024, and 9 January 2025. Leveraging an advanced large language model (DeepSeek V3) for automated text mining, the study analyses the current state of Hong Kong's labour market, including job attributes, skill requirements, and compensation benefits.

The findings indicate that the recruitment market in Hong Kong remains dominated by traditional service industries, with over 40 per cent of job demand from import-export (including wholesale and retail), finance and insurance, and accommodation and food services sectors. Each of these three sectors accounts for approximately 20,000 job vacancies (Figure 1). Therefore, the stability of each of these positions is directly affected by the risks posed by US-China trade tensions. 83.9 per cent of vacancies are full-time, with 40.7 per cent being entry-level positions, and 23.1 per cent classified as senior roles (Figure 2). Regarding job content, managerial and service-oriented roles account for over 60 per cent of the total, reflecting Hong Kong's established service-based economy.

Hong Kong has been vigorously developing an intelligent economy in recent years, and promoting the implementation of artificial intelligence and innovative technology industries. However, this study found that the recruitment market now demands mainly basic skills, with 39.7 per cent of jobs posted seeking candidates who possess basic digital literacy, 11.7 per cent requesting advanced computer skills, but fewer than two per cent of vacancies indicating a need for advanced technologies such as AI and big data (Figure 3). Nearly 60 per cent of job vacancies have low-threshold requirements, with no need for post-secondary education, although almost 30 per cent require a university degree or higher. In terms of soft skills, job advertisements emphasise practical qualities such as teamwork, attention to detail, and proactiveness, with a relatively lower demand for creativity.

The survey also highlights a steady trend towards the gig economy, characterised by temporary, part-time, and flexible work arrangements in Hong Kong's labour market, where the proportion of part-time work is 13.2 per cent. Hourly wage jobs are also quite common, accounting for 12.5 per cent of the overall market, but although this flexible employment model meets part of the market's needs, current labour laws often cover occupational injuries, healthcare, and retirement protections such as Mandatory Provident Fund contributions inadequately in such non-standard employment relationships, leaving many flexible workers without basic protection.

Taking the import-export trade, wholesale, and retail where labour demand is highest as an example, the results show that positions are more focused on frontline services and entry-level roles, with service functions dominating at 48.8 per cent, while managerial roles make up only 25.5 per cent. The part-time ratio is significantly high at 19.1 per cent (Figure 4), far exceeding the market average. Moreover, this industry generally requires “low-threshold, practice-oriented” skills compared to the average, focusing more on attracting individuals in basic positions. The educational requirements are notably lower, with 63.8 per cent of positions clearly stating that no specific qualifications are needed, and language requirements are relatively relaxed. The demand for basic digital skills is also low, accounting for only 28.8 per cent.

There is a general lack of transparency in working hours and salary information in both full- and part-time recruitment, and although jobs with a five-day work week account for 53.3 per cent of these (Figure 5), 71.3 per cent of positions do not specify working hours (Figure 6), and 52.9 per cent do not disclose salary ranges. The research team also analysed the overall transparency of recruitment information across different industries comprehensively, using scores for comparison, and found that the transparency of recruitment information in traditional industries is generally scarce (Figure 7), hindering job seekers from evaluating job quality, and potentially leading to excessively long working hours and unfair compensation being difficult to monitor, which affects the bargaining power of flexible workers.

Prof Pun Ngai, Chair Professor of the Department of Cultural Studies at Lingnan University, who led this study, said, "The research clearly shows that Hong Kong's economic structure is highly reliant on specific service industries, a situation that will face a substantial employment impact against the backdrop of the US-China trade war. At the same time, the rise of the gig economy is changing work patterns, but our labour protection system has not kept pace, leaving many flexible workers in a state of having work but no protection. Also, the lack of transparency regarding basic information such as working hours and salaries highlights the need to improve fairness and efficiency in the labour market."

Prof Pun added, "The government needs to assess the trade war's potential impact on low-income workers and strengthen employment protections in the gig economy. Now is the time to take decisive action to provide substantial transformation support for affected workers and to establish a fairer, more transparent, and more secure working environment for everyone, especially the growing number of flexible workers."

The research team believes that timely policy intervention can effectively mitigate the employment shocks caused by external impacts, improve labour rights under the gig economy, and enhance the labour market's overall resilience and sustainable development. They also suggest that the government strengthen vocational transition support for the affected industries, encouraging impacted workers to transfer their skills to new fields with growth potential, such as the green economy, healthcare, and technology-assisted positions.

The team has proposed the following core policy recommendations:

1. Countertrade impacts and accelerates occupational transition: Enhance and adjust the Employees Retraining Board (ERB) and Vocational Training Council (VTC) courses. Focus on facilitating skill transitions for employees in industries affected by the trade war, such as trade, logistics, and retail, towards emerging growth sectors. Also, increase training allowances and explore establishing short-term unemployment assistance.

2. Review and enhance protection for flexible workers: Conduct a comprehensive review of the applicability of current labour laws regarding work injury, medical insurance, MPF, etc., affecting flexible workers. Explore innovative protection models drawing on international experience.

3. Standardise recruitment information disclosure and prioritise working hour transparency: Implement binding codes or regulations requiring job advertisements to clearly state salary ranges, working hour ranges, payment methods, and primary benefits to be monitored by the Labour Department. Regarding standard working hour legislation, due to its complexity, the government is advised to actively consider phased or industry-specific trials as ensuring transparency of working hour information is a crucial first step in safeguarding labour rights.

4. Invest strategically in future digital skills: Strengthen digital literacy while investing in training for cutting-edge technologies such as AI and Big Data to prepare talent for economic transformation and external challenges.

Index for Figures 1 and 7.