New report shows more employers planning to freeze, reduce headcount
Recruitment across Hong Kong is predicted to slow down in the first quarter of 2025 as fewer employers plan to increase or maintain their headcount.
Findings from Jobsdb by SEEK revealed that the percentage of employers planning to maintain their headcount next year declined to 47%, lower by one per cent than last year.
Employers who are planning to increase their headcount also slipped to 24%, down by six per cent from the previous year.
On the other hand, employers seeking to freeze their headcount next year have increased to 17%, up by eight per cent. Those planning to cut their workforce also rose to seven per cent, up by three per cent from the previous year.
"The survey findings reveal that employers are more cautious in their recruitment outlook for next year compared to this year," said Bill Lee, Managing Director, Hong Kong, Jobsdb by SEEK, in a statement.
"However, most employers still intend to increase or maintain their workforce, indicating a stable recruitment market ahead."
Source: Jobsdb by SEEK
The findings come as 69% of organisations reported recruitment challenges, with the top three reasons including:
Employers who consider hiring "more difficult" said their average hiring cycle lasts for 1.9 months, while their turnover rate in the past 12 months is 11.5%.
Meanwhile, the report is also predicting a 1.8% average salary increase in Hong Kong for 2025, down by 0.4 percentage points from the previous year.
It revealed that the biggest pay adjustment in 2025 will be in the engineering industry, with 3.4%.
This is followed by the Jewellery/Gems/Watches industry (3.0%), Food and Beverage industry (2.8%), and the Medical/Pharmaceutical industry (2.8%).
The Human Resources / Recruitment industry will also see an increase of 0.4% in average monthly salaries, below the national average.
The findings come as pay hikes emerge as the top measure (47%) for Hong Kong employers to retain talent, followed by job promotion (29%), and improved benefits (22%).
Source: Jobsdb by SEEK
