As American and European economies continue to slowly stumble ahead in 2013, a great deal of speculation remains with regard to how this is affecting Asia and Greater China. Despite many Hong Kong-based professionals predicting a gloomy outlook for the SAR’s economic short- to medium-term future, the latest Manpower Employment Outlook Survey for Q3 2013 reveals that Hong Kong employers, in most sectors, are in fact taking a more bullish approach to hiring and staff expansion plans in key sectors.
An aggregate view on the outlook reveals that, across the APAC region, hiring plans are strongest in Taiwan, New Zealand and India, and surprisingly weakest in Australia, which may reduce the desirability of Australia as one of the best countries to live and work in.
Optimism rising
After removing seasonal variations from survey data, Manpower reported that Hong Kong’s Net Employment Outlook stands at +13%, a positive result, which indicates that more employers plan to actually increase rather than decrease staffing levels. The outlook for hiring prospects has strengthened by two percentage points quarter-on-quarter but has weakened by one percentage point year-on-year. This suggests that many employers are remaining cautious when it comes to hiring.
Of the 805 employers surveyed, a promising 18% forecast an increase in staffing levels within the next quarter, with only 4% predicting a decrease. However, the majority, 75%, forecast no change in Q3, indicating that the head count is predicted to remain relatively stable, with no ‘mass hiring’ drives from employers.
Mining and services on the rise
According to the Survey—which observed finance; insurance & real estate; manufacturing, mining & construction services; transportation & utilities; and wholesale & retail trade sectors—all industries expect to continue adding to their staff levels. Year-on-year, two-thirds of employers reported weaker hiring paces, whilst two of the six industry sectors surveyed reported strengthened outlooks.
The mining & construction and services sectors are also optimistic about future hiring as Lancy Chui, Regional Managing Director, Manpower Group, Greater China Operations explained, “Hong Kong’s ten major infrastructure projects continue to place added pressure on labour demand within the construction sector and the Government’s plan to increase public housing has brought positive benefits to stimulate hiring. However, despite positive demand within the sector, finding available workers with the right skills remains a challenging issue.” Commenting on the growth of services, she observed, “Tourism is another mainstay of our economy, accounting for 4.5% of our GDP. Inbound tourism spending in 2012 showed a 16.5% increment from the previous year.” The Survey reported that employers within the transportation & utilities sector group predict steady workforce gains with an outlook of +13%, increased by a substantial five percentage points from the same quarter in 2012. Chui commented, “The Government’s support to reinforce and enhance Hong Kong’s position as an international shipping centre with high value-added maritime services has further propelled the hiring pace of this sector as the logistics industry now makes up one quarter of Hong Kong’s GDP.”
Positive albeit cautious outlook for other sectors
Hiring within the finance, real estate and insurance sectors is likely to remain steady in Q3, with employers reporting an outlook of +13%, up three percentage points quarter-on-quarter, but down three percentage points since the Q3 2012 outlook. Fresh graduates looking for entry into the finance sector may not have as many opportunities as those graduating two years ago, however Chui maintains that there is still demand for talent in risk management and compliance due to tightened banking regulations. The wholesale and retail sector reported an outlook of +9%, which is nine percentage points lower than the Q3 2012 outlook, indicating that hiring in these sectors may continue to proceed cautiously. Whilst both local consumption and mainland tourist demand remains steady, Hong Kong is still one of the world’s most expensive regions for retailers to rent.
Paul Arkwright
Publisher
