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Hong Kong still lacks workers, yet many university graduates are finding it increasingly difficult to land their first job.

The Labour and Welfare Bureau’s latest midterm manpower projection shows the city’s overall labour shortfall narrowing to about 130,000 by 2028, down from the estimate of 180,000 published two years ago. On the surface, this suggests talent policies and efficiency gains are working. But for fresh graduates, the picture is far less encouraging.