HONG KONG EMPLOYERS EXPECT A POSITIVE HIRING PACE BUT TURN CONSERVATIVE IN 2024 Q3 ManpowerGroup Employment Outlook Survey Reported

Hong Kong (18 June 2024) – The third quarter of 2024 results of the ManpowerGroup Employment Outlook Survey released today report a positive hiring pace but turn conservative.

Of the 525 employers surveyed, 37% expect an increase in payrolls, 29% anticipate a decrease, and 32% forecast no change. After being adjusted for seasonal variation, the Outlook stands at +8%, decreasing -7 percentage points compared to last quarter.

ManpowerGroup's Employment Outlook Survey covers 42 countries and regions worldwide, with a total of 40,374 employers surveyed. The global net employment outlook (NEO) for the third quarter of 2024 is +22%, while it reported an NEO of +8% in Hong Kong, which is 14 percentage points lower than the global.

“Among Hong Kong's seven sectors, all except for the transportation and logistics sector, the employment outlook index remains positive. This indicates that the overall employment prospects in Hong Kong are stable. However, employers are adopting a more cautious approach towards hiring. This shift in hiring intentions is influenced by the ongoing decline in the international economic environment and the gradual shift of local consumption patterns towards the mainland market. These factors have impacted Hong Kong's domestic economy and highlight the trend of Hong Kong residents traveling to the Mainland to purchase certain goods and services. As a result, the overall economic environment in Hong Kong is facing pressures, prompting employers to exercise greater prudence when it comes to hiring additional staff,” stated Ms Lancy Chui, Senior Vice President at ManpowerGroup Greater China Limited (2180 HK).

Based on the survey finding as reported above, the most optimistic sector in Hong Kong is the Information Technology sector with a Net Employment Outlook of +32%.

“An increasing number of information technology companies are incorporating artificial intelligence (AI) technology into their products to enhance its value, drive business growth, and improve daily operational efficiency. For instance, AI Workflow Automation can automate repetitive tasks. According to the latest artificial intelligence usage survey conducted by ManpowerGroup, out of 525 surveyed companies, 52% of the companies in Hong Kong have already adopted AI tools, and 25% of the companies plan to implement AI technology within the next year. The widespread adoption of AI technology has resulted in a growing demand for skilled professionals in emerging technical fields such as artificial intelligence, machine learning, and big data within the information technology sector,” Chui explained.

Employers in the Health Care & Life Sciences sectors reported positive hiring plans for the coming quarter with a Net Employment Outlook of +23%.

“The healthcare and life sciences sector is consistently facing talent shortage issues, primarily driven by the ongoing imbalance between doctors and the growing elderly population, as well as the rising number of patients with chronic illnesses. This situation is expected to deteriorate even further in the coming years. To address the talent shortage, this sector has been broadening the scope of positions included in the "talent list" to expand the pool of medical professionals in Hong Kong. Additionally, healthcare and life sciences companies are actively seeking to recruit talents from around the world to solve this challenge,” Chui explained.

An upbeat hiring pace is expected in the Communication Services sector, with a Net Employment Outlook of +9%.

“As 5G network technology continues to develop, it will be significant enhancements in Internet of Things (IoT) technology, providing a stronger foundation for the development of smart cities and improving day-to-day network communications. Moreover, 5G networks will enhance the efficiency and reliability of intelligent transportation systems and environmental monitoring, thereby improving the overall effectiveness of city operations. Consequently, the communication services sector will need to recruit additional skilled professionals to align with the progression of smart city development,” Chui stated.

A healthy hiring pace in the Financials & Real Estate sector is forecasted in the July to September period, with employers reporting a Net Employment Outlook of +8%.

“As business collaboration between Hong Kong, Mainland, and the Greater Bay Area deepens, the new business premiums from Mainland visitors in Hong Kong have surged to HK$15.6 billion. This marks a substantial increase of over 62% compared to the same period last year. It is anticipated that the number of insurance premiums from the Mainland and the Greater Bay Area in Hong Kong will continue to rise in the upcoming quarter. Simultaneously, many insurance companies are expanding their product portfolios to include more personalized and diverse options, aiming for market share expansion. Thereby, a rising demand for digitalized insurance management is emerging within the insurance industry. Consequently, insurance companies will have an upbeat hiring pace to hire more insurance practitioners and digital developers to meet the growing demand for insurance services and the need for digitalization in the industry,” Chui explained.

Job seekers in the Industrials & Materials sector can expect a healthy hiring pace in the upcoming quarter, according to employers who reported a Net Employment Outlook of +7%.

“The industrial and materials sectors, in collaboration with the government, are set to introduce new industrial acceleration programs. These programs will offer funding opportunities to advanced manufacturing companies, particularly those involved in microelectronics and semiconductor production. In alignment with the development of the Greater Bay Area, Hong Kong is also planning to establish a new innovation and technology park. It aims to enhance cooperation between Hong Kong and the mainland in emerging technological, industrial and materials industries and provides incubation and acceleration support for startups. This initiative will attract substantial companies to establish their branches in Hong Kong, leading to increased job opportunities for talents in the new industrial sectors,” Chui stated.

Employers in the Consumer Goods & Services sectors reported positive hiring plans for the coming quarter with a Net Employment Outlook of +6%.

“The industry is actively promoting the mega event economy to enhance Hong Kong's status as a premier tourist destination. Over 100 events are scheduled to take place in the second half of the year, including regional events, financial forums, trade exhibitions, international sports, and cultural events. With additional eight new mainland cities included to the individual travel scheme, allowing more mainland individual tourists to Hong Kong and Macao. The total number of cities with this privilege has risen to 59, including several major mainland capitals. It is anticipated that these initiatives will stimulate an upbeat hiring pace in this sector, catering to the growing number of tourists and the rise in local consumption,” Chui explained.

Employers in Transport, Logistics & Automotive sector is expected a more cautious hiring pace in the third quarter, with a Net Employment Outlook of -17%

“The aviation industry has experienced a faster-than-anticipated recovery following the expansion of individual travel cities scheme. It has been a 35% year-on-year increase in the number of aircraft flights and passengers. However, the transportation and logistics sector has encountered challenges due to intensified competition and international trade disputes, leading to a decline in container throughput. This decline has had a negative impact on the logistic supply chain, with Hong Kong's total container throughput experiencing a 4.7 percentage point decrease compared to the previous year. As a result, transportation and logistics companies are expected to adopt a more cautious approach towards hiring due to the reduced throughput,” Chui explained.

ManpowerGroup and HKPC Academy also held the "Strategic Partnership - HKPC Academy" Collaboration Launch Ceremony on the same day. With the continuous development of artificial intelligence (AI), many enterprises also hope to enhance work efficiency by utilising AI to enable employees to focus on more strategic or high-value tasks. During the event, Ms Karen Fung, Chief Marketing Officer & General Manager, InnoPreneur and FutureSkills, of Hong Kong Productivity Council (HKPC), analysed the market demand for talent equipped with AI skills and discussed how employees should reskill and upskill with AI skills and prepare for future development. She emphasised that nowadays employees are accustomed to navigating the use of AI in the workplace, the key lies in whether enterprises can set up appropriate AI tools, guidelines for usage, and pertinent training to help employees use AI sensibly, protect data and ensure security. These measures can allow employees develop their expertise, and improve productivity. Talent nurturing is an essential part of technology development. The New Industrialisation and Technology Training Programme (NITTP) under the Innovation and Technology Fund subsidises local companies on a 2:1 matching basis to train their staff in advanced technologies, helping enterprises nurture I&T talent, and keeping abreast with the evolving industry trends. Furthermore, HKPC Academy offers over 1,000 training programmes each year, helping enterprises of different industries to stay competitive. Additionally, HKPC encourages enterprises apply for various Government funding, such as the Technology Voucher Programme (TVP), which support enterprises adopt technological services and solutions; and the New Industrialisation Funding Scheme (NIFS), offers funding support of up to HK$45 million for the setting up smart production lines in Hong Kong, utilising technology to enhance productivity.

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FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements, including statements regarding labour demand in certain regions, countries, industries, and economic uncertainty. Actual events or results may differ materially from those contained in the forward-looking statements due to risks, uncertainties and assumptions. These factors include those found in the Company's reports filed with the SEC, including the information under the heading "Risk Factors" in its Annual Report on Form 10-K for the year ended December 31, 2022, which information is incorporated herein by reference. ManpowerGroup disclaims any obligation to update any forward-looking or other statements in this release, except as required by law.