Hong Kong’s employment outlook rebounds sharply to 14% in fourth quarter

Hong Kong's employment outlook has significantly improved, rising to 14% in the fourth quarter, according to a ManpowerGroup survey. The city's net employment outlook, which factors in both hiring and layoffs, jumped from a previous quarter's negative 9% to 14%, a 23 percentage point increase. The survey of 603 employers found that 30% planned to expand their workforce, 16% expected cuts, and 54% saw no changes.

Lancy Chui, senior vice-president at ManpowerGroup Greater China, credited the improvement to stronger economic growth, citing Hong Kong's 5.1% year-on-year real GDP growth and a government forecast of 3.5 to 4.5% for the year. The technology sector showed the most optimism at 27%, followed by finance and insurance at 21%, professional, scientific, and technical services at 15%, and trade and logistics at 10%.

Financial sector hiring was bolstered by increased activity in IPOs, asset management, insurance, and roles like investment banking and compliance. Hospitality saw a modest 5%, driven by the year-end festive season, while manufacturing remained cautious at 7%, with most hiring focused on replacing staff. Health and social services were the only sector with a negative outlook at minus 3%, still an improvement from the previous quarter.

Despite the strong quarter-on-quarter growth, Chui noted that Hong Kong's outlook remains weaker than many other markets, including mainland China, Vietnam, and India, though still ahead of Singapore's 13%.