The job market in Hong Kong faced significant challenges in 2023, impacted by global recession concerns, higher interest rates, economic headwinds in China, and a domestic economic slowdown. Companies adopted conservative approaches, focusing on cost control with longer interview processes and more layers of approvals before extending offers to potential candidates. Professionals, in turn, prioritized job security when considering job moves.

However, there are still the signs of potential marginal improvements in 2024 as compared to 2023, indicating a slow recovery.

Generalization of Roles in the Market

In 2023, hiring predominantly occurred at mid-level positions, with senior-level roles often filled by more junior candidates to cut costs. This trend is likely to continue, reflecting a desire among companies to reduce expenses by hiring candidates one level of seniority below. There’s an increasing emphasis on hiring and nurturing young professionals, addressing the talent shortage among junior and middle-level candidates. Moreover, there’s a growing demand for generalised roles, with employers favoring individuals possessing a wider range of skills and experiences, allowing them to fill multiple roles with a single hire.

More Contract Hiring in 2024

Organizations are cautious, opting for contingent workers instead of committing to long-term talent strategies. In a skills-short market, the ability to adapt and learn quickly is crucial. By hiring on a contract basis, companies can adjust their workforce according to evolving business needs. This approach allows for quick assessment of a candidate’s specialized skills for specific projects and ensures a good fit within the organization before making a long-term commitment. Contract positions also provide candidates with opportunities to gain experience, expand their skillsets, and potentially transition into permanent roles.

Technology and AI to lead Talent Demand

In 2024, technology, particularly AI and machine learning, will remain in high demand among employers. Companies are looking to the AI to improve productivity and automate processes. Candidates with a deep understanding of building and utilizing AI models are highly sought after. More employers in Hong Kong are exploring the use of AI models to replace routine tasks or administrative work.

Marginal Salary Growth as the Recruitment Market Slowly Recovers

In 2024, the average salary ranges for professionals in Hong Kong are projected to remain relatively stagnant. Job movers can expect salary increments of between 5-10%. However, market conditions are expected to slowly improve, with more optimism regarding hiring volume. While the increase in hiring numbers may not be significant, a slight improvement in the recruitment market is anticipated in 2024.

Conclusion

The Hong Kong job market is poised for a slow recovery in 2024, with potential improvements in hiring trends and salary growth. Companies will continue to focus on cost control and conservative hiring practices, with a growing emphasis on generalized roles and contract hiring. Technology, particularly AI, will lead talent demand, while marginal salary growth is expected. Although confidence remains fragile, there is cautious optimism for a better recruitment market in 2024.

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