Hong Kong firms want to hire more but are wary about the economy

According to a survey, over one-third of Hong Kong companies anticipate growing their workforce in the next three months. However, due to economic challenges and the tendency of residents moving over the border to spend their money, employers are becoming more cautious when it comes to hiring.

After surveying 525 businesses earlier this month, the human resources company ManpowerGroup Greater China published a quarterly report on the job forecast for the city on Tuesday.

According to the survey, 37% of respondents anticipated higher staffing levels in the third quarter of this year, 29% predicted lower levels, and 32% predicted no changes at all.

For the three months ending in September, the net employment outlook index was at 8%, down from 15% for the previous quarter, when 25% of respondents predicted a decline in hiring and 40% predicted an increase.

A positive number indicates that more employers anticipate adding personnel. The index deducted the percentage of employers expecting a decrease in recruiting activity from the percentage expecting an increase.

“The overall employment prospects in Hong Kong are stable,” said Lancy Chui Yuk-shan, senior vice-president of the company.

“However, employers are adopting a more cautious approach towards hiring. This shift in hiring intentions is influenced by the ongoing decline in the international economic environment and the gradual shift of local consumption patterns towards the mainland market.”

Chui pointed out that Hong Kong’s quarterly employment outlook index was lower than the 22% global average.

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Based on the poll, which included over 40,000 employers in 42 nations and regions worldwide, Costa Rica had the highest index globally at 35%, while Argentina and Romania had the lowest at 3%.

With respective percentages of 30% and 28%, mainland China and India had the strongest outlooks in the Asia-Pacific area. Japan’s 12 percent and Hong Kong’s 8 percent were among the lowest.

According to the poll, six out of seven industries in Hong Kong had a favorable employment outlook index for the ensuing three months. The information technology sector had the highest score, at 32%, followed by the healthcare and life sciences sectors at 23%.

Chui credited the broad use of artificial intelligence (AI) technology in businesses, which increased the need for qualified workers, for the robust employment momentum in the IT sector.

According to her, 25% of the 525 organizations surveyed intended to use Al technology within the next year, and 52% of them had already implemented AI technologies.

Additionally, employers in the consumer goods and services industry reported a 6% positive index.

Chui stated that the announcement of Hong Kong’s ambitions to host over 100 major events in the second half of the year and the extension of a program for solo visits to eight additional mainland Chinese cities were the driving forces behind the employment plans.

“It is anticipated that these initiatives will stimulate an upbeat hiring pace in this sector, catering to the growing number of tourists and the rise in local consumption,” she said. Adding that the growing number of mainland restaurants expanding to Hong Kong would also bring more job opportunities locally.

Before May 27, residents of Taiyuan, Hohhot, Harbin, Lhasa, Lanzhou, Xining, Yinchuan, and Urumqi would be eligible to apply to visit Hong Kong alone rather than only as part of tour groups, according to an earlier announcement by the authorities.

The financial and real estate industries came in at 8%, industrials and materials at 7%, and communication services at 9% all had positive indexes.

The transportation, logistics, and automotive sectors were the only ones to have a negative index—at minus 17%.

Chui pointed out that the transportation and logistics industry faced difficulties due to heightened rivalry and international trade conflicts. These issues have resulted in a decrease in container throughput, impacted the logistics supply chain, and made employers more hesitant to hire.

From February to April of this year, the city’s unemployment rate remained at 3%, the same as it did from January to March.