University graduates are facing a shrinking job market as AI adoption reduces entry-level hiring. In Hong Kong, vacancies suitable for graduates have dropped by 61% since 2022, from about 80,000 to 31,000 in 2025. Students like Harry Dong, a University of Hong Kong senior, report sending 30-40 applications with only one interview. He notes that companies open only one to three positions because "AI has taken the rest." Employers are becoming too "utilitarian", believing AI saves money despite inferior output.
Key Factors Behind the Slump
- AI automation: An IDC study found over 60% of enterprises expect to reduce entry-level hiring in three years due to AI. Tasks like paperwork, calculations, and simple analysis are easily automated.
- Economic downturn and geopolitical tensions: Andy Luk of the Hong Kong Institute of Human Resource Management cites these as the real causes, not AI or non-local talent.
- Non-local graduate influx: Applications under the Immigration Arrangements for Non-local Graduates Scheme rose 8.5% in 2025, adding competition.
Graduate Struggles
Krystal Ma, a mainland Chinese student at Baptist University, has sent 40 applications since September with only three interviews. She now works part-time as an education agent and tutor, far from her desired marketing career. Non-locals also face visa hurdles with small companies.
Advice for Graduates
- Take more internships to gain experience.
- Learn to use AI as a tool, not a threat.
- Sharpen skills AI can't replace, such as communication and creativity.
- Employers should teach interns practical skills beyond repetitive tasks.
Andy Luk says the economic downturn and geopolitical tensions are the real reasons for the slump, rather than AI or non-local talent. Photo: Edmond So
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