19 March 2025, Hong Kong

KPMG China has just launched its Ninth Annual Hong Kong Employment Outlook Report, shedding light on the current trends and hurdles within the dynamic employment landscape of the region. This comprehensive survey, conducted in early January 2025 with insights from 425 business executives and professionals, examines headcount expectations, salary trends, and talent management strategies crucial for companies aiming to attract and retain top talent.

Key Findings: Navigating a Cautious Job Market

Despite a glimmer of optimism from C-level executives regarding hiring in 2025, the overall employment atmosphere in Hong Kong remains cautious. Specifically, 76% of executives believe they will either increase or maintain their hiring levels—a slight uptick from last year—yet the prevailing uncertainty underscores a more cautious approach moving forward.

The survey highlighted several noteworthy trends:

- Salary Expectations Decline: Only 74% of respondents foresee a pay increase in 2025, down from 78% in 2024, signaling a potential tightening of budgets as firms navigate economic uncertainty.

- Career Mobility Stagnation: The report reveals a decrease in job changes, with only 14% of participants having switched roles in 2024 compared to prior years (15% in 2023 and 23% in 2022). This trend indicates a growing preference for stability in the workforce.

- Desire for Job Security: In a notable shift, 39% of respondents now prioritize job stability as their top non-salary consideration when selecting an employer—a significant increase from 31% in 2024.

- Talent Acquisition Challenges: A staggering 97% of C-level and HR respondents reported encountering difficulties in finding suitable candidates, with over half expressing that these challenges are unmanageable.

The Impact of Generative AI on Employment

The report also delves into the burgeoning influence of generative AI within the workplace. More than half of the surveyed organizations in Hong Kong have successfully integrated generative AI in the past year, reshaping the employment paradigm and indicating a tech-driven future where businesses must adapt rapidly.

Greater Bay Area Expansion Opportunities

In a promising note for the future, 65% of respondents indicated that their organizations are either already operating in the Greater Bay Area (GBA) or planning to expand there within the next three years. The GBA’s growing ecosystem presents a robust talent pool, with 51% of C-level and HR professionals hiring talent from the Chinese Mainland in 2025, and 28% sourcing from international markets.

As we approach 2025, KPMG celebrates "80 Years of Trust" in Hong Kong. Since establishing its roots in 1945, the firm has played a pivotal role in shaping the region into a leading global financial hub, reinforcing its commitment to clients and the community through trust and collaboration.

What Does This Mean for Job Seekers and Employers?

With these insights, job seekers should brace for a more stable employment environment where retaining talent is becoming paramount for organizations. Employers may need to hone their talent management strategies—offering not just competitive salaries but also non-monetary benefits that address the desire for stability.

The 2025 Employment Outlook Report serves as a crucial guide for navigating the complexities of the current job market. As we move forward, the landscape will likely continue evolving, driven by technological advancements and economic dynamics. Stay tuned for more updates and insights!

Is your organization prepared for the changing landscape? Explore more about navigating these employment trends!