KPMG Releases Ninth Annual Hong Kong Employment Outlook Report

• As we enter 2025, the Hong Kong employment market continues to evolve, presenting both opportunities and challenges for businesses. The Hong Kong Employment Outlook 2025 delves into the key trends shaping the city's talent market.

• The ninth edition of KPMG's annual report analyses the city’s latest employment trends and explores the prospects of Hong Kong’s talent market for 2025 based on the insights of our subject matter experts and a survey with Hong Kong business executives and professionals.

KPMG China announced in mid-March the release of its ninth annual Hong Kong Employment Outlook survey, providing insights into the latest trends and challenges facing the region's employment market. The report covers the headcount expectations of Hong Kong professionals, a salary outlook with an analysis of compensation and benefits in the region, talent management trends to retain and attract talent, areas of growth for companies, and a multi-sectoral salary table. It reveals a cautious employment market in Hong Kong, with C-level executives expressing slightly more optimism about hiring in 2025 compared to 2024 albeit with more uncertainty also creeping in. However, overall headcount expectations have decreased slightly year-over-year across most sectors.

Conducted between 2 and 14 January 2025, the survey collected the perspectives of 425 Hong Kong business executives and professionals on employment trends and career opportunities in Hong Kong and the wider Greater Bay Area (GBA). Respondents were drawn from various sectors, with 53% of respondents' organisations being headquartered in Hong Kong. Among the respondents, 50% held leadership positions (21% C-level and 29% department head or equivalent). This year also marks the first time the survey was expanded to Singapore, for which the findings are covered in a separate publication.

David Siew, Head of People Services, Tax, KPMG China, says: "Evolving business needs, shifting workforce demographics, and technological advancements will drive Hong Kong's employment market. Organisations will need to strike a balance between the optimisation of their operations and the evolving expectations of the workforce for long-term success."

The report highlights the growing importance of talent management for Hong Kong-based organisations, with employers increasingly focusing on attracting and retaining top talent.

Key findings include:

• A cautious hiring market: Whilst C-suites retain a more optimistic view of increasing or maintaining headcount in 2025 (76%), the increasing uncertainty creeping in suggests that employers will be more cautious in a challenging market.

• Subdued salary expectations: Across all respondents, 74% are expecting a pay rise in 2025 against 78% the year prior.

• Career moves are on a downtrend: 14% of survey respondents reported having made a career move in 2024 against 15% in 2023 and 23% in 2022.

• Stability is increasingly sought after: 39% of respondents put stability as their top non-monetary factor when choosing a new employer, up from 31% in 2024.

• Talent demand adapts to market conditions: 97% of C-level and HR respondents experienced challenges in hiring the right talent, with 53% finding these challenges unmanageable.

The report also explores the impact of generative AI on the Hong Kong employment market, with more than half of Hong Kong respondents reporting that their organisations have adopted Gen AI in the past 12 months.

Finally, this year's report touches on GBA opportunities for Hong Kong-based organisations, with 65% of respondents reporting their organisation is either already operating in other GBA cities or planning to expand there within the next three years. The GBA also offers a deep talent pool of qualified professionals that Hong Kong-based organisations have increasingly leveraged: half (51%) of C-level and HR respondents hired talent from the Chinese Mainland in 2025 while 28% hired from overseas markets.

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About the KPMG annual Hong Kong Employment Outlook survey

Conducted between 2 and 14 January 2025, the survey collected the perspectives of 425 Hong Kong business executives and professionals on employment trends and career opportunities in Hong Kong and the wider Greater Bay Area (GBA).

Respondents were drawn from various sectors, with 53% of respondents’ organisations being headquartered in Hong Kong. Among the respondents, 50% held leadership positions (21% C-level and 29% department head or equivalent).

This year also marks the first time the survey was expanded to Singapore, for which the findings are covered in a separate publication.