Lancy Chui Yuk-shan, senior vice-president at ManpowerGroup Greater China, poses during a news conference about the Employment Outlook Survey published by ManpowerGroup Greater China in Tsim Sha Tsui, Hong Kong, on Dec 12, 2023. (ZHANG TIANYUAN / CHINA DAILY)
Workers in Hong Kong can expect to see an average salary increase of 3.3 percent in 2024, with the construction and catering sectors likely to lead the way.
“Despite a substantial number of Hong Kong residents spending on the Chinese mainland, the food and beverage as well as the retail sectors continue to face a labor shortage. Therefore, employers need to offer higher wages to retain employees,” said Lancy Chui Yuk-shan, senior vice-president at ManpowerGroup Greater China.
Chui was speaking at a news conference detailing the Employment Outlook Survey published by ManpowerGroup Greater China on Tuesday.
ManpowerGroup Greater China interviewed 525 Hong Kong employers, and found that the construction sector is poised to lead with an average salary growth of 4.4 percent, followed by the food and beverage sector, which is expected to see an average wage rise of 4.2 percent. However some employment sectors will experience much lower wage increases
“Even if a wave of closures hits the catering industry next year, the persistent demand suggests that this will only slightly ease the labor shortfall,” she added.
The global workforce solutions company interviewed 525 Hong Kong employers, and found that the construction sector is poised to lead with an average salary growth of 4.4 percent, followed by the food and beverage sector, which is expected to see an average wage rise of 4.2 percent. However some employment sectors will experience much lower wage increases.
Professionals in the fintech industry are expected to enjoy an average pay increase of 4 percent, while individuals who switch jobs are likely to experience a substantial salary increase, with average surge ranging between 10 and 15 percent.
The talent shortage in Hong Kong is expected to ease in the first quarter of 2024, but it remains serious, as 78 percent of the surveyed companies predicted they will have difficulty filling jobs due to lack of talent next year.
Though the figure dropped 7 percentage points from its peak in 2023, it still exceeds the global average — 75 percent — in 2024. The city’s labor shortfall will persist next year, according to the survey.
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The survey also indicates that the city is hungry for information and technology expertise, with 43 percent of the interviewed firms lacking qualified staff. Sustainability and environmental skills are the second most in-demand, with 23 percent of employers highlighting their need.
In this photo dated Feb 28, 2023, pedestrians use a crossing in Central, Hong Kong. (ANDY CHONG / CHINA DAILY)
As businesses increasingly look to integrate artificial intelligence into their operations, they are encountering challenges in implementation, with training employees and finding qualified staff topping the list.
In terms of hiring outlook, 44 percent of surveyed employers expect an increase, 15 percent anticipate a decrease, and 40 percent forecast no change.
The survey also indicates that the city is hungry for information and technology expertise, with 43 percent of the interviewed firms lacking qualified staff. Sustainability and environmental skills are the second most in-demand, with 23 percent of employers highlighting their need
After being adjusted for seasonal variation, the employment outlook index stands at positive 29 percent, edging up one percentage point compared to last quarter, and increasing seven percentage points year-on-year.
Chui said, “Employers are expected to hold a stable hiring pace across all sectors in the upcoming quarter as the net employment outlook remains positive.
“Despite surveyed employers expressing positive intentions for recruitment, the talent shortage persists, and they continue to face difficulties in finding sufficient qualified candidates to fill crucial positions. In order to address this problem, companies have offered flexible working hours and locations, as well as providing competitive compensation packages,” she added.
The net employment outlook index is calculated by subtracting the percentage of employers who expect a decrease in hiring from the percentage who anticipate an increase in hiring activity.
The communications sector shows the most optimistic employment outlook with an index of positive 63 percent. This marks a quarterly rise of 15 percentage points and a year-over-year surge of 31 percentage points.
The transportation and logistics sector is also showing strong signs of employment growth, with its index standing at positive 34 percent. Meanwhile, the consumer goods and services industry recorded an index of positive 20 percent.
READ MORE: HK employees receive average salary raise of 3.5%
As of December, the Hong Kong Special Administrative Region government welcomed 70,000 talents, double its annual target, under various talent attraction programs.
Previously, the government has eased entry rules this year to bring in about 27,000 foreign laborers to stem a manpower shortage in sectors ranging from construction, catering to aviation. The labor import plan includes recruitment quotas for as many as 12,000 foreign workers in construction.
