KPMG in China has revealed its ninth annual Hong Kong Employment Outlook report, showing a cautiously evolving employment market as we step into 2025. Conducted between January 2 and January 14, 2025, the comprehensive survey collected insights from 425 Hong Kong business executives and professionals, shedding light on the region's employment landscape amid shifting priorities and external challenges.
The findings highlight a notable cautiousness among organizations. Just over half (53%) of respondents' organizations are headquartered in Hong Kong, where job stability has grown significantly in importance. A key takeaway from the report is that 39% of those surveyed cited stability as their top non-monetary factor when choosing a new employer—up from 31% in 2024.
David Siew, Head of People Services, Tax at KPMG China, remarked, "Evolving business needs, shifting workforce demographics, and technological advancements will drive Hong Kong's employment market. Organizations will need to strike a balance between optimizing their operations and the evolving expectations of the workforce for long-term success." His comments encapsulate the dual challenges faced by employers as they navigate this changing landscape.
The report also reveals a decrease in overall headcount expectations across many sectors. While 76% of C-suite executives expressed optimism about maintaining or increasing their workforce in 2025, many organizations remain cautious due to the prevailing uncertainty. Comparatively, the hiring environment reflects a trend where 97% of C-level and HR respondents encountered difficulties in sourcing the right talent, with over half (53%) finding these hiring challenges unmanageable.
In terms of financial expectations, the survey indicates a subdued outlook for salary increases. About 74% of respondents anticipate receiving a pay rise in 2025, which is a decline compared to 78% in the previous year. This trend highlights a tightening economic climate where businesses are reevaluating their compensation strategies.
Despite these challenges, the report underscores a significant opportunity within the Greater Bay Area (GBA). Sixty-five percent of the surveyed professionals indicated that their organizations are either currently operating in GBA cities or plan to expand there in the coming three years. This market area presents an expanding talent pool, with 51% of C-level and HR professionals reporting successful hires from the Chinese Mainland, while 28% have brought in talent from international markets.
The sentiment around career movement is less favorable; only 14% of survey respondents reported having made a career move in 2024, down from 15% in 2023 and markedly lower than the 23% recorded in 2022. This decline in mobility indicates that stability is being favored over risk-taking in today's job market.
This year's survey was particularly notable as it marked the first time KPMG extended its reach into Singapore, offering insights that will be analyzed separately. This expansion reflects a broader awareness of employment trends across the region and reinforces the interconnectedness of Hong Kong's labor market with that of neighboring cities.
As KPMG China prepares to celebrate 80 years of service in Hong Kong, it emphasizes its long-standing commitment to supporting the local economy and business landscape. Established in 1945, KPMG has worked closely with numerous stakeholders, including the government and various regulatory bodies, to establish Hong Kong as a leading business and financial hub.
"80 Years of Trust" serves as the theme for KPMG's anniversary, reflecting the corporation's deep-rooted involvement in the region's growth and its dedication to fostering lasting relationships within the community.
As KPMG's Hong Kong Employment Outlook for 2025 demonstrates, while there are clear challenges ahead in recruitment and retention of skilled professionals, opportunities in burgeoning markets like the Greater Bay Area may offer the silver linings businesses need to adapt and thrive.
