Salary growth in Hong Kong stalls in 2024
In a forecast that signals a cautious economic landscape, employees in Hong Kong are advised to anticipate static salaries in the coming year, with a significant majority of employers—81%—projecting increments of less than 6%.
The survey by Robert Walters revealed that employers in Hong Kong are adopting a conservative stance, emphasising cost-control strategies as the cornerstone of their financial approach in 2024. Against this backdrop, only 58% of employees are optimistic about receiving a pay raise, with 68% of those not expecting an increase attributing it to the adverse effects of the current economic climate on their respective industries or businesses.
John Mullally, Managing Director of Robert Walters in Hong Kong, said, “The market is slowly improving, although employer and candidate confidence remains quite fragile.”
The survey, encompassing 300 candidates and 150 organisations, divulges that salary adjustments across industries are poised to hover around 1% for most functions. Specifically, the construction, property, and engineering sectors are expected to buck this trend with a projected 3% growth in 2024.
Jobseekers eyeing a substantial pay hike through a job change will likely face challenges. The survey indicated that salary increments resulting from job changes in 2024 are anticipated to range between 5% and 10% on average, reflecting a decline from the 15% to 20% average observed this year.
READ MORE: Surging salaries in Hong Kong outpace cities in Guangdong province
The challenging 2023 job market, marked by global recession concerns, is expected to persist. Sectors like investment banking may witness continued job cuts due to previous over-hiring. Additionally, confidence among candidates regarding job opportunities has dipped, with only 50% expressing optimism compared to 63% in December 2022. Career progression remains the primary motivator for job changes, with nearly three-quarters actively seeking new opportunities, reported South China Morning Post.
