Employees in Hong Kong are advised to expect unchanged pay in the coming year, according to a projection that reflects a cautious economic picture, with a huge majority of employers—81%—projecting increases of less than 6%.
According to the Robert Walters poll, companies in Hong Kong are taking a conservative approach, highlighting cost-cutting techniques as the cornerstone of their financial strategy in 2024. Against this backdrop, just 58% of employees are positive about earning a salary rise, with 68% blaming it on the negative impact of the present economic climate on their specific industry or enterprises.
“The market is slowly improving,” said John Mullally, Managing Director of Robert Walters in Hong Kong, “although employer and candidate confidence remains quite fragile.”
According to the poll, which included 300 individuals and 150 companies, wage changes across industries are expected to be approximately 1% for most functions. With a forecast 3% increase in 2024, the building, property, and engineering industries are likely to break this trend.
Job seekers seeking a significant income increase through a job change would almost certainly find difficulties. According to the poll, pay increases from job transfers are expected to range between 5% and 10% on average in 2024, a decrease from the 15% to 20% average seen this year.
Hong Kong’s wage growth will halt in 2024.The tough employment market of 2023, typified by global recession fears, is projected to endure. Due to recent over-hiring, sectors such as investment banking may continue to see employment cutbacks. Furthermore, applicant optimism about job chances has declined, with only 50% optimistic in December 2022, down from 63% in December 2022. According to the South China Morning Post, career advancement remained the key reason for job transfers, with nearly three-quarters actively pursuing new chances.
