March 21, 2025 – In a troubling development for the Hong Kong job market, the Census and Statistics Department (C&SD) has unveiled a 0.3% decline in private sector employment, translating into a staggering loss of 7,000 jobs in December 2024 year-on-year. This drop raises serious concerns about the economic climate and job prospects as the new year unfolds.

The latest report indicates that private sector job vacancies have plummeted by 20%, now resting at 58,410 positions—a steep decrease of 14,660 from the previous year. This trend has sparked alarm among economists and job seekers alike.

As of December 2024, the total employment across selected industries amounted to 2,715,800 individuals. The breakdown reveals that the import and export trade sector remains a substantial employer with 354,500 workers, while professional and business services (excluding cleaning services) follows with 311,500. Other significant sectors include financing and insurance with 233,300, retail trade employing 232,700, and food and beverage services contributing jobs for 220,900 individuals.

The employment landscape, however, is not uniform across all industries. The wholesale sector took a severe hit, losing 5.4% of its workforce (2,700 jobs), while the retail trade experienced a decline of 5.3%, which amounted to 13,000 jobs lost. The import and export trade sector faced a 2.2% decrease (8,100 jobs), whereas the food and beverage services saw a drop of 1.6% (3,600 jobs).

On a brighter note, there were sectors that bucked the trend. Real estate reported employment growth of 4.6% (6,400 jobs), human health services increased by 3.5% (5,400 jobs), and residential care and social work services rose by 3.1% (2,200 jobs). This hints at a shift in demand towards more essential services amid economic uncertainties.

Among the 58,410 vacancies, the education sector led the pack with 5,950 openings, followed by professional and business services (5,670), food and beverage services (5,480), residential care and social work services (4,990), and financing and insurance (4,920). Overall, most industries saw a reduction in vacancy rates compared to the previous year—most notably human health services (down 40%), education (down 25%), retail trade (down 30%), and arts and recreation services (down 29%). Yet, the import and export trade sector surprised observers with a modest increase of 15%, adding 410 vacancies.

When examining the types of roles available, the lion's share of vacancies continues to be in service and sales positions (22,190), followed by professions and associate professionals with 9,520 and 8,730 roles respectively.

Seasonally adjusted data indicates a slight dip of 0.1% in total employment and a more pronounced 5.3% drop in overall vacancies since September 2024, indicating that the private sector labor market remains fraught with challenges.

As Hong Kong grapples with these economic shifts, the pressing question remains: What will this mean for job seekers and the overall economic recovery in the months ahead? Stay tuned for updates as the situation develops!