Labour and skill shortages in Hong Kong’s construction industry

Purpose – With many large-scale infrastructural and residential projects in Hong Kong, the construction industry is suffering from serious labour and skill shortages. The purpose of this paper is to identify practicable strategies for resolving these problems, assess the effectiveness of these identified strategies and finally develop a conceptual labour supply model. Design/methodology/approach – Data were collected qualitatively and quantitatively through discussion forums and questionnaire surveys. Comprising 30 expert members, two discussion forums were held to identify both practical response strategies and conceptual labour supply framework. Based on ten identified strategies, surveys were then conducted in the form of a web-based questionnaire. In total, 2,900 respondents were invited to take part and 438 questionnaires were completed. Grounded theory approach was adopted to develop a labour supply theory. Findings – In total, three identified strategies which could deliver quick results to the industry were increasing worker wages, importing foreign workers and engaging employers to provide training. Other identified strategies were also effective over the medium and long terms. Practical implications – Many of the identified solutions are enforceable. These are not only applicable to Hong Kong, but also transferable to other countries where voluntarily based measures under the free-market economy do not work in an effective manner. Originality/value – Unlike previous studies largely relied on voluntarily based measures, most of the identified strategies in this study are enforceable to ensure its effectiveness. In addition, based on the grounded theory approach, this study has developed a conceptual model for analysing labour supply issues in both local and overseas situations, thus contributing to the new knowledge in this area.