Hong Kong employers are growing increasingly more optimistic and in the first quarter of 2011 jobseekers are likely to benefit from a more active hiring pace. This according to The Manpower Employment Outlook Survey released just before going to press. Once seasonal variations are removed from the survey data, Hong Kong’s Net Employment Outlook stands at a respectable +21%. Employer hiring intentions improve both quarter-on-quarter and year-on-year by 4% and 7%, respectively. While 21% of the 809 employers surveyed expect to add employees over the next three months, up 2% quarter-over-quarter, only 1% predicted reducing staffing levels.
Lowest unemployment since 2008
Nearly three-quarters of respondents anticipate no employment changes over the next quarter, indicating that employment prospects have continued to improve steadily since Q2 of 2009. “In addition, GDP growth, which expanded briskly by 6.8% in Q3 of 2010, has helped strengthen the job market, pushing down the latest unemployment rate to 4.2%, the lowest since Q4 2008,” said Lancy Chui, Managing Director, Manpower Hong Kong, Macau and Vietnam Operations. Employers in all six industry sectors anticipate positive hiring activity in Q1 2011.
Service Sector (+26%)
The most optimistic hiring intentions are reported by employers in the Service Sector, with a solid outlook of +26%. Outlook in this sector has improved 4% over the last quarter, and 1% over the same quarter last year. Quarter-over-quarter, employers in four industry sectors report stronger hiring plans, whilst year-over-year; employer confidence in five industry sectors continues to strengthen. “Consumer enthusiasm in the luxury products or services, and the remarkably strong 9.6% expansion of China’s GDP in the third quarter of 2010 are likely to continue benefiting Hong Kong’s tourism and its related industry sectors in the coming months,” said Chiu. “Deep-pocketed mainlanders continue to boost the demand for workers in this sector…As for the Retail Trade Sector, despite an obvious turnaround to the positive, Hong Kong retailers continue to endure some of the world’s most expensive retail space and the scarcity of prime units continues to push rental increases accordingly. This is an ongoing cost consideration and another factor that may impact employers’ ability to hire,” explained Chui. Jobseekers are likely to encounter a favourable hiring climate, +17%, according to employers in the Wholesale & Retail Trade Sector, which is 10% stronger year-over-year.
Manufacturing Sector (+17%)
Manufacturing employers also report a hopeful outlook at +17%. This is the strongest forecast since Q3, 2008 and represents a 5-10% improvement both quarter-over-quarter and year-over-year. Chui explained, “A slower external trading environment and softer consumer demand from the US and Europe have impacted the Manufacturing Sector. We expect to encounter additional challenges with worker shortages, rising wages and competition from other low-cost regions all combining to further weaken hiring confidence in the Manufacturing Sector.”
Finance, Insurance & Real Estate Sector (+24%)
Hiring expectations in the Finance, Insurance & Real Estate Sector also strengthened with employers reporting a respectable outlook of +24%. This represents a moderate increase of 6% and 7%, respectively over last quarter, and the same quarter this time last year. Chui commented, “Going forward, we can continue see employment prospects in a generally positive light, particularly in the Accounting, Banking and Services Sectors where we observe growing demand for talent with specific skill sets in wealth management, accounting and audit, and telemarketing and frontline sales with superb customer services skills.”
Transportation & Utilities and Mining & Construction Sectors (+20%)
Employers in the Transportation & Utilities and Mining & Construction Sectors forecast an upbeat hiring pace in the first quarter of 2011, both with hopeful Outlooks of +20%. Chui commented, “Government statistics indicate there is a continuous upward trend in passenger traffic which may have contributed to the Transportation Sector’s 12% improvement when compared with Q4 2010, and if a third airport runway expansion plan is implemented, employment prospects of both the Transportation and Construction Industry Sectors should continue to be optimistic.” She added, “Any changes in the external trading environment and global market will bring pressure directly to the hiring expectations. Nonetheless, hiring activity has increased throughout 2010 and only time will tell if healthy demand for workers will continue to throughout 2011.”
Paul Arkwright
Publisher
