In 2025, 15% of Hong Kong employers plan to grow their permanent staff, while 18% are focusing on expanding their contract workforce, according to research by Robert Walters Hong Kong.

The research found that many employers are using a managed services model to augment their workforce, enhancing flexibility and efficiency in their operations.

At the same time, Hong Kong’s strategic initiatives to attract overseas talent are gaining traction.

Businesses are increasingly seeking talent, particularly technical roles, from Mainland China. Over half (53%) of Mainland China professionals interested in working in Hong Kong are open to contract roles, according to Robert Walters Hong Kong. This indicates that the government’s talent initiatives are effectively expanding the talent pool available to employers.

Further data showed that the job market has become more employer-driven, with employers holding more leverage due to limited opportunities. It also found that 55% of employers forecast a pay rise for employees in 2025, down 9% compared to November 2023. Among these employers, 77% of them are likely to give a 1%-5% salary increase to their employees in the coming year.

Considering the global recession and local economic challenges, professionals are increasingly prioritising job security, reflecting a cautious approach to career moves. The survey showed that 25% of professionals do not plan to change jobs in 2025, a 13% increase from 2024. This cautiousness is further underscored by the fact that 46% of professionals express a lack of confidence in job opportunities within their field, marking a 9% rise from the previous year.

John Mullally, Managing Director of Robert Walters Hong Kong, said in a press release, “It is taking a much longer time to fill roles, and many hiring managers assume there is an abundance of talent available, but the reality is quite the opposite. Many stronger candidates are risk-averse and are prioritising job stability over exploring new opportunities.”

While 62% of job seekers are hoping for a salary increment of 10% or more to make a move, only 33% of employers are prepared to meet these expectations. This scenario presents a more challenging environment to find the right talent in a larger candidate pool. Tight budgets have intensified the difficulty of securing top candidates, who are now demanding higher risk premiums to consider new opportunities.

According to Robert Walters Hong Kong, 31% of employers reported that they see the most acute talent shortage at the senior associate level, followed by the manager level (25%) and senior managers and C-suite roles (25%).

Meanwhile, nearly 40% of employers are focusing on improving their learning & development programs to upskill existing employees by 2025, ensuring their workforce remains adaptable to address the challenges of the market.

The research also found that the use of AI in the workplace is on the rise, with 75% of professionals reporting they are utilising AI models, such as ChatGPT, in their work—a jump from 45% in November 2023.

The most common applications include copywriting, content creation, and editing (41%), data analysis (24%), and research and information gathering (37%).

Notably, over half of the professionals (53%) expressed that they are not concerned about the emergence of AI models replacing routine roles.