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Hiring outlook bleak for HK, China in 2017

Demand for contract employees to go up as more firms seek flexible staffing solutions, says Robert Walters survey

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Salary increments for Hong Kong this year are expected to remain at between 3 to 5 per cent for employees who remain in the same roles, while job movers can expect about a 10 to 15 per cent salary increase. Photo: Reuters
Zen Soo

Employers in Hong Kong and China are likely to slow their hiring plans this year due to job freezes in the financial industry and the growing preference for contract employment, according to a recent salary survey.

More layoffs are likely in the banking and financial services sector in Hong Kong as global investment banks continue to lose significant market share to Chinese banks in the equity and debt capital markets, as well as merger and acquisition deals, said the findings from global recruitment consultancy Robert Walters’ Global Salary Survey 2017.

Last year China saw slow growth in hiring for traditional positions in the financial services industry after the emergence of new competitors such as internet banks and peer-to-peer lenders, the recruitment firm said.

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“Financial institutions were under extreme pressure to cut costs and reposition their business portfolio to build on their core strengths, resulting in minimal additional headcounts and even some redundancies,” said Matthew Bennett, managing director for Robert Walters in Greater China.

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Bennett added that companies and banks in Hong Kong were likely to hire more contract employees for project and headcount purposes this year.

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