Number of employers expecting better business situation in 2023 dips
Most businesses in Hong Kong are expecting their headcount to increase or remain broadly unchanged in the first quarter of 2024 despite a dip in confidence for the coming months.
The latest Quarterly Business Tendency Survey from the Census and Statistics Department (C&SD) revealed the expectations of senior management of about 570 establishments on their short-term business performance.
"Respondents in most of the surveyed sectors expect their employment to increase on balance or remain broadly unchanged in the first quarter of 2024 as compared with the preceding quarter," the report said.
Most respondents in the following sectors expect their employment to increase in the first quarter of 2024:
- Accommodation and food services
- Manufacturing
- Financing and Insurance
- Real Estate
On the other hand, more respondents in the Information and Communications sector expect their employment to decrease, according to the report.
An earlier forecast from JobsDB Hong Kong revealed that 30% of employers in the financial hub plan to expand their full-time workforce in the first quarter of 2024 despite various recruitment challenges.
This comes as the Labour Department expects the financial hub's labour market to "stay tight in the near term," as unemployment remained at 2.9% in the October to December period.
Business confidence
Business confidence in the coming months also appeared to decline for the first quarter as well, but they remain positive for many employers, according to the C&SD survey.
Some 13% of respondents said they are expecting their business situation to be better in Q1 2024 than in the previous one, much lower than the 17% who expected the same for Q4 2023.
The number of employers who said the business situation will worsen has also went up to 12% in Q1 2024, higher than the nine per cent in the previous quarter.
Business sentiment among large enterprises showed some softening as compared to three months ago, but remained positive in overall terms, according to a government spokesperson.
"Further recovery of consumption- and tourism-related activities should support business outlook, though the difficult external environment and tight financial conditions will continue to dampen sentiment. The Government will monitor the situation closely," the spokesperson added, as quoted in Hong Kong's official government portal.
