Lancy Chui Yuk-shan, senior vice-president of ManpowerGroup Greater China, presents the results of a survey on the Hong Kong labor market on Sept 19, 2023. (JUSTIN ZHOU / CHINA DAILY)

Employers in Hong Kong are approaching the final quarter of this year with caution, as economic uncertainties, interest-rate hikes and geopolitical tensions undermine their confidence despite an improving labor market, a survey has found.

According to human resources agency ManpowerGroup Greater China, 47 percent of 510 employers surveyed expect to hire new staff in the fourth quarter, with 17 percent saying they would reduce their headcount, and 33 percent predicting no change.

Lancy Chui Yuk-shan, senior vice-president of ManpowerGroup Greater China, said on Tuesday that although the local labor market has improved in the past few months, Hong Kong employers are still adopting a conservative approach towards recruitment amid the uncertainties.

The findings indicated that communication services in Hong Kong had the highest net employment outlook for the coming quarter at 48 percent, as the industry needs a growing pool of professionals to innovate and improve the quality of services to meet the public’s growing demand for diverse streaming media content

“Volatile factors, such as the deceleration of global economic recovery, potential interest-rate hikes and geopolitical tensions, have instilled a sense of caution among employers, leading to a more prudent approach towards hiring compared to the previous quarter,” she said.

The special administrative region’s unemployment rate stood at 2.8 percent between May and July -- dropping 0.1 percentage point, compared to the period from April to June.

The SAR’s net hiring outlook stands at 30 percent for the period from October to December after being adjusted for seasonal variations.

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The latest survey, which reflects hiring confidence among employers, calculates the net hiring index after seasonal adjustments, by subtracting the percentage of employers anticipating a decline in the size of their workforce from the percentage expecting an increase.

The findings indicated that communication services in Hong Kong had the highest net employment outlook for the coming quarter at 48 percent, as the industry needs a growing pool of professionals to innovate and improve the quality of services to meet the public’s growing demand for diverse streaming media content.

Healthcare and life sciences came second with a net employment outlook of 40 percent for the last quarter of the year. Chui attributed the optimism to Hong Kong’s appeal as a hub for the industry’s growth and the city’s strengthened collaboration with other cities in the Guangdong-Hong Kong-Macao Greater Bay Area.

Information technology posted 35 percent in the net employment outlook, followed by financials and real estate, as well as industrial and materials, at 27 percent and 22 percent, respectively.

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Globally, all 41 countries and regions covered in ManpowerGroup’s survey reported a positive outlook for the fourth quarter of 2023, with the net employment outlook index reaching 30 percent.

Jonas Prising, chairman and chief executive officer of ManpowerGroup, said the data for the fourth quarter show that employers’ confidence in hiring remains stable despite prevailing economic uncertainties.

“There’re still more employers, led by small and medium-sized businesses, looking to increase their headcount rather than to reduce it, as we approach the end of 2023,” he said.

“Global companies remain focused on recruiting and retaining the talent they need to drive growth. Those that emphasize upskilling programs, workplace flexibility and culture will be the most competitive in still-tight labor markets, and better positioned to motivate and retain talent,” Prising said.

zhoujianxin@chinadailyhk.com