Hong Kong’s job market has experienced significant challenges over the past year, with layoffs and economic uncertainties impacting the landscape. The job market has become more employer-driven, with employers holding more leverage due to limited opportunities. Despite this, there are positive signs of recovery in the coming year, according to John Mullally, Managing Director at Robert Walters Hong Kong.
Read on to find out more about John’s expectations for Hong Kong’s hiring market in 2025.
Top skilled professionals prioritising job security
Considering the global recession and local economic challenges, professionals are increasingly prioritising job security, reflecting a cautious approach to career moves. More individuals are opting for stability over opportunity compared to 2024, which is further underscored by a notable lack of confidence in job prospects within their respective fields.
John Mullally, Managing Director of Robert Walters Hong Kong, commented, “It is taking a much longer time to fill roles, and many hiring managers assume there is an abundance of talent available, but the reality is quite the opposite. Many stronger candidates are risk-averse and are prioritising job stability over exploring new opportunities.”
Tight budgets have intensified the challenge of securing top candidates, who are now demanding higher risk premiums to consider new opportunties. This presents a more challenging environment for organisations seeking to find the right talent in a larger candidate pool.
The rise of middle level managers
In a cost-conscious market, there is a notable preference for middle-level hires, reflecting a strategic approach to talent acquisition. This trend highlights businesses' inclination to streamline operations during economic downturns, resulting in a flatter organisational structure where middle-level managers play a crucial role.
Companies are increasingly emphasising internal promotions, enabling individuals familiar with the company's culture and processes to transition into new roles with minimal disruption.
To address the experience gap and skill shortage created by the rise of middle-level managers as replacements for senior roles, companies must invest in training and development to equip these managers with the necessary skills. Companies should focus on improving their L&D programs to upskill existing employees in 2025, ensuring their workforce remains adaptable to address the challenges of the market.
Employers seek flexible and cost-effective solutions to hire talent
Employers in Hong Kong are turning to flexible and cost-effective solutions to meet their talent acquisition needs. The demand for contract workers, particularly in the technology sector for short-term projects, is on the rise. Many employers are also adopting managed services model to augment their workforce, enhancing flexibility and efficiency in their operations.
In addition, Hong Kong's strategic initiatives to attract overseas talent are gaining momentum. Businesses are actively seeking professionals, especially for technical roles, from Mainland China. With many Mainland China professionals looking to work in Hong Kong are open to being employed as contract workers. This indicates the government's talent initiatives are effectively expanding the talent pool available to employers.
Cautious optimism in 2025
Despite the challenges faced over the past few years, there is cautious optimism about increased hiring numbers in the first half of next year. John Mullally commented,
After two and a half years of a slowdown, especially in the financial services sector, we might be turning a corner. The Hang Seng Index is up 15% for the year, and there has been an increase in IPO activity over the last few months.
While this optimism is tempered by the awareness of ongoing economic uncertainties, we are hopeful that the trends observed in the stock market and increased investment activity will translate into a more robust job market.
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