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Hong Kong’s job market has become more employer-driven, with employers holding more leverage due to limited opportunities, a new survey finds.
There has been a notable decline in white-collar job vacancies in the city this year, and the number of job applications received has surged by 122%, indicating a growing desire among professionals to seek new opportunities, according to the survey by recruitment services firm Robert Walters Hong Kong.
The survey also reveals that only 55% of employers forecast a pay rise to employees in 2025, down 9% compared to the result in November 2023. Among these employers, 77% of them are likely to give 1-5% salary increase to their employees in the coming year.
Still, there are positive signs of recovery in Hong Kong’s job market. Approximately 15% of surveyed employers plan to increase their permanent headcount in 2025, while 18% aim to expand their contract workforce.
Job security prioritized
In view of the economic challenges the city is facing, professionals are increasingly prioritizing job security, reflecting a cautious approach to career moves.
The survey reveals that 25% of professionals do not plan to change jobs in 2025, up 13% from 2024. This cautiousness is further underscored by the fact that 46% of professionals express a lack of confidence in job opportunities within their field, marking a 9% rise from the previous year.
"It is taking a much longer time to fill roles, and many hiring managers assume there is an abundance of talent available, but the reality is quite the opposite,” says John Mullally, managing director of Robert Walters Hong Kong. “Many stronger candidates are risk-averse and are prioritizing job stability over exploring new opportunities."
While 62% of job seekers are hoping for a salary increment of 10% or more to make a move, only 33% of employers are prepared to meet these expectations, the survey finds.
This scenario presents a more challenging environment to find the right talent in a larger candidate pool, Robert Walters says. Tight budgets have intensified the difficulty of securing top candidates, who are now demanding higher risk premiums to consider new opportunities.
Middle-level managers
In a cost-conscious market, there is a notable preference for middle-level hires, reflecting a strategic approach to talent acquisition. According to the survey, 31% of employers see the most acute talent shortage at the senior associate level, followed by the manager level ( 25% ), and senior managers and C-suite roles ( 25% ).
This trend may reflect businesses' tendency to streamline operations during economic downturns, leading to a flatter organizational structure where middle-level managers play a crucial role. Companies emphasize internal promotions, allowing those familiar with the company's culture and processes to step into new roles with minimal disruption.
To address the experience gap and skill shortage created by the rise of middle-level managers as replacements for senior roles, companies must invest in continuous training and development to equip these managers with the necessary skills, Robert Walters says.
According to the survey, nearly 40% of employers are focusing on improving their learning and development programmes to upskill existing employees by 2025, ensuring their workforce remains adaptable to address market challenges.
AI in the workplace
The use of artificial intelligence ( AI ) in the workplace is on the rise, with 75% of professionals reporting they are using AI models such as ChatGPT in their work – a jump from 45% in November 2023. The most common applications include copywriting, content creation, and editing ( 41% ), data analysis ( 24% ), and research and information gathering ( 37% ).
Notably, over half of the professionals ( 53% ) expressed that they are not concerned about the emergence of AI models replacing routine roles. This reflects a growing confidence in the ability of AI as a tool to enhance productivity rather than replacing jobs in the evolving workplace landscape.
Cost-effective solutions
Employers in Hong Kong are turning to flexible and cost-effective solutions to meet their talent acquisition needs. The demand for contract workers, particularly in the technology sector, for short-term projects is on the rise.
According to Robert Walters, 18% of surveyed employers plan to expand their contract workforce in 2025. Also, many employers are using the managed services model to augment their workforce, enhancing flexibility and efficiency in their operations.
Meanwhile, Hong Kong’s initiatives to attract overseas talent are gaining traction. Businesses are increasingly seeking talent, particularly technical roles, from mainland China. According to Robert Walters, 53% of mainland professionals looking to work in Hong Kong are open to being employed as contract workers. This indicates that the government's talent initiatives are effectively expanding the talent pool available to employers.
Cautious optimism
Despite the challenges faced over the past few years, there is cautious optimism about increased hiring numbers in the first half of next year. "After two and a half years of a slowdown, especially in the financial services sector, we might be turning a corner,” says Mullally. “The Hang Seng Index is up 15% for the year, and there has been an increase in [initial public offering] activity over the last few months."
About 15% of employers plan to increase their permanent headcount in 2025, while 18% aim to expand their contract workforce. Half of the employers say their hiring plan will remain unchanged.
The top in-demand professions in Hong Kong for 2025 are:
