No doubt the market is tough, and for most industries it's very much still an employer's market. I do think, however, that there's still a demand for qualified people with good skills and experience.
Even without a military budget (let's hope we don't ever need one), the telecoms market in HK specifically exists for at least 4 reasons that I can think of below:
1) to meet the needs of enterprise businesses who are headquartered here and need to communicate, across the globe or across town, there are system integrators and equipment vendors that don't need to rely on developing new equipment, but rather sell solutions that meet customer's demands;
2) high number of mobile penetration/broadband usage among the general population demands higher bandwidth requirements;
3) Similarly, HK enjoys what's among the lowest IDD rates in the world, think of the equpment that must be sold/maintained/upgraded to enable that (until skype takes over, that is)
4) cable over DSL (i.e NOW) is still a relative novelty in most parts of the world, yet it's readily availalbe in HK. This kind of pioneering mentality does encourage and drive demand for telecom services and gear that is lacking in other parts of the world.