More firms plan to hire as recovery continues, survey finds

Hong Kong's continuing economic recovery is prompting more companies to consider increasing their workforces, a survey has revealed.

The Manpower Employment Outlook Survey found 27 per cent of the 557 employers interviewed intended to increase staffing during the last three months of the year. Only 2 per cent intended to reduce their workforce during the quarter, while 63 per cent would not be hiring or firing anyone.

The employment consultants' global survey, which has been carried out in one form or another for 42 years, was first extended to Hong Kong in the fourth quarter last year, when the city was just starting to throw off the effects of Sars and the protracted downturn.

At that time, 18 per cent of businesses were planning to hire people - possibly to replace staff laid off during the Sars outbreak - and 13 per cent were going to shed staff, said Manpower's director for Hong Kong, Deborah Morgan. 'There was certainly an element of catch-up then,' she said, 'but what we've seen is that it has kept going.'

She said the best way to view the statistics was to look at net hiring intention, reached by subtracting the percentage of businesses looking to sack people from the percentage looking to hire.

For the fourth quarter of last year, the net hiring intention was just 5 per cent, while for the fourth quarter this year it was 25 per cent. 'There is no easing off,' Ms Morgan said, noting particularly strong growth in the finance and tourism-related sectors. 'The service industries are gearing up and as long as Hong Kong continues to attract tourists in this way then it will need all the other things like transport and retailing that go with it.'