LCQ2: Enhancing employability of young people
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Question:
According to a research paper issued by the Legislative Council Secretariat last month, the unemployment rate of young people in Hong Kong has been rising in recent years. Last year, about 36 200 young people were "NEETs" (i.e. young people not in employment, education or training), accounting for about 6.3 per cent of the total youth population. It has been reported that the development of artificial intelligence (AI) has led to a reduction in the recruitment of young people for entry-level positions by enterprises. In this connection, will the Government inform this Council:
(1) whether the Government will, in the face of the aforesaid situation, conduct a comprehensive review of youth policies and their actual effectiveness at a macro level, so as to improve the support for youth development and assist young people in seeking employment; if so, of the details;
(2) given that AI technologies are replacing some entry-level positions, whether the Government will systematically introduce training in AI application skills for young people to help them acquire new skills, thereby enhancing their employability; if so, of the specific policy measures and implementation timetable; and
(3) given that the proportion of NEETs among young people in Hong Kong is higher than those in Singapore and Japan, whether the Government will formulate targeted support and publicity strategies to provide them with appropriate assistance, enhance their incentive to work, and motivate them to join the labour market; if so, of the specific details; if not, the reasons for that?
Reply:
President,
The Government attaches great importance to and is committed to promoting youth development. In consultation with the Home and Youth Affairs Bureau (HYAB), the Education Bureau (EDB), and the Census and Statistics Department (C&SD), a consolidated reply to the Member's question is as follows:
(1) The Government released the Youth Development Blueprint (Blueprint) in December 2022, outlining the overall vision and guiding principles for the Government's long-term youth development work in future. In the Blueprint, various policy bureaux and departments put forward over 160 specific actions and measures, with enhancing the employability of young people being one of the action agendas. The HYAB has been collaborating with various policy bureaux and departments to actively implement the Blueprint and keep under view the latest developments in the society and young people community. This ensures that the Blueprint is progressing with the times and can continue to respond to the evolving needs of young people. Since the release of the Blueprint, relevant policy bureaux have additionally introduced a total of about 130 youth-related new measures, including initiatives to strengthen AI education and training.
(2) The rapid development of AI brings challenges but also creates new opportunities. Various studies have indicated that while automation technologies such as AI could replace part of existing jobs, they would also create new employment opportunities at the same time. Their impacts on the labour market are far-reaching, spanning across all trades and industries as well as jobs at different levels. To keep abreast of the impacts of AI on Hong Kong's overall labour market as well as various industries and occupations, the Labour and Welfare Bureau is currently conducting a comprehensive analysis and the findings of which will be incorporated into the mid-term update of the Manpower Projections, which is expected for release in the fourth quarter of 2026, to provide a more comprehensive statistical basis for policy formulation in the future.
On education and training, the Government has encouraged the University Grants Committee (UGC)-funded universities to offer programmes which cater for Hong Kong's development needs, expand the talent pool of important areas such as innovation and technology, and strengthen Hong Kong's competitiveness. The 2022 Policy Address set out the target that, by the 2026/27 academic year, 35 per cent of the students of the UGC-funded universities will be studying STEAM (science, technology, engineering, art and mathematics) subjects and 60 per cent will be studying subjects relevant to Hong Kong's development into the "eight centres" (including an international innovation and technology centre) in the 14th Five-Year Plan. In 2023, the UGC also allocated $100 million to establish the Fund for Innovative Technology-in-Education which aims to encourage universities to leverage technology to advance teaching innovation and enrich learning experience, fostering a new generation of well-rounded talent for the digital economy.
In addition, the Study Subsidy Scheme for Designated Professions/Sectors (SSSDP) implemented by the EDB subsidises students to pursue designated self-financing undergraduate and sub-degree programmes (including computer science) that meet Hong Kong's socio-economic development needs. From the 2027/28 academic year onwards, priority will be given to the inclusion of AI-related programmes under SSSDP. Besides, the Vocational Training Council has included relevant AI content in the compulsory modules on Information Technology for its Higher Diploma (HD) programmes starting from the 2025/26 academic year, and the coverage will be extended to all HD programmes by the 2026/27 academic year.
Meanwhile, the Government is preparing to upgrade the Employees Retraining Board (ERB) to Upskill Hong Kong. Apart from continuing to provide dedicated training programmes for young people aged 15 to 29 covering training on various vocational and generic skills, the ERB will also offer more skill-based training courses on such areas as AI applications to meet market demands, helping service targets including young persons acquire emerging skills to enhance their competitiveness in the job market.
(3) Based on the data from the C&SD, from 2023 to 2025, the number of young people aged 15 to 24 who were not in employment, education, or training (i.e. NEETs) ranged from 33 700 to 36 100, accounting for 5.7 per cent to 6 per cent of the population in that age group (excluding foreign domestic helpers). Historical data reveals that even in years with robust economic growth and keen manpower demand in the labour market, the youth NEET rate in Hong Kong mostly hovered around 6 per cent to 7 per cent, which reflects that local youth generally require a longer time to explore their career directions and secure suitable employment, and therefore have longer job-seeking periods.
The Government has launched a number of comprehensive and diversified measures to assist and promote youth employment. The generally higher unemployment rate among young people is primarily due to the fact that many of them are first-time job seekers lacking work experience. The Labour Department (LD) implements the Youth Employment and Training Programme to provide dedicated and free training and employment support services to young people aged 15 to 29 with an educational attainment at sub-degree level or below. Employers engaging trainees in on-the-job training are eligible to receive a monthly on-the-job training allowance of up to $5,000 per trainee for six to 12 months. The LD also operates two Youth Employment Resource Centres named Youth Employment Start (Y.E.S.), which offer one-stop integrated support services on employment and self-employment.
In addition, the LD implements the Greater Bay Area Youth Employment Scheme, encouraging enterprises to employ Hong Kong young people aged 29 or below with sub-degree or higher qualifications to work in Mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area, thereby broadening their career horizons. Enterprises participating in the Scheme may apply for a maximum monthly allowance of $12,000 for each Hong Kong young person employed under the Scheme for up to 18 months.
The LD will review its services in a timely manner in light of changes in the youth employment situation with a view to providing young people with appropriate employment support.
Ends/Wednesday, June 3, 2026
Issued at HKT 12:20
Issued at HKT 12:20
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