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Data compiled by Career Times Research Team
Sustained job growth in 2004 saw a record number of people in work and there is general confidence that this momentum can be maintained in 2005
As the overall economy rebounded throughout 2004, the recruitment market became increasingly active and rising demand for staff in most major sectors brought good news on many fronts. In July, for example, 68 successive months of deflation came to an end, prompting some companies to project average salary increases of 3-5 percent for 2005 and the need for higher bonuses in order to retain quality staff.
According to figures produced by the Career Times Research Team for advertised job vacancies, the year stated slowly. There were 3,314 positions advertised in the first week of January, up just over 50 from the corresponding period in 2003, and the Chinese New Year holiday then brought the usual seasonal slowdown. However, the weekly figures shot up to an impressive 7,934 by early February and, as the market continued to strengthen, showed a consistent year-on-year improvement, peaking at a high of 8,537 in mid-April. The final quarter began with a dip down to 3,636, but this was followed by a steady climb to a weekly level of around the 6,000 mark towards the end of the year.
With the economy continuing to grow, the number of people in work surged to a record high. Census and Statistics Department data revealed that total employment in the three months to the end of November increased by around 9,700 to over 3.3 million. Similarly encouraging was the seasonally adjusted unemployment rate, which declined slightly during the second half, and stood at 6.7 percent in December.
Stellar sectors
In terms of specific sectors, year-end demand for executives was up 88 percent compared to twelve months earlier and E.L Consult's Executive Demand Index showed that December's figure was 10 percent better than November. The best performing sector was marketing, which showed a 15 percent monthly rise in December and was up 192 percent from a year before.
Finance recorded a steady 10 per cent gain in December, largely driven by demand for executives at banks and CPA firms, and the advertised vacancies in this sector, which hit 442 in one week at the end of February, were regularly almost double the totals seen in 2003. Alfred Chown, principal of E.L Consult, is nevertheless cautious, noting that, "These gains are coming off a very low base, as the SARS outbreak in 2003 stymied a recovery from the lows of 2002."
Manufacturing grew substantially in 2004 and general sentiment indicates that CEPA will help this boom continue well into 2005. With the mainland providing a stable production base, vacancies touched a weekly high of 2,068 in August, an increase of almost 1,200 on the previous year.
For IT, though, things were slower with demand actually falling in the first quarter of 2004 before achieving a year-on-year improvement of 21 percent in December. According to InfoTech director Edwin Tam, "The recent boost in the rate of employment is now having a positive impact on the sector's general pay level."
Data compiled by Career Times Research Team
HR viewpoint
One discernible trend in the last year has been the move towards greater outsourcing. Jennifer Kavanagh, marketing and communications manager for Manpower Services (Hong Kong) Limited, says that two-thirds of companies currently outsourcing have indicated savings in time and money, and most managers now see this as an established way of working. Mr Chown confirms the trend and notes that many companies are starting to use flexible HR models to cut recruitment costs and to boost overall productivity.
In other ways, Alexa Chow, managing director of Centaline Human Resources Consultants Ltd, observed a noticeable shift in 2004. "Candidates now have greater bargaining power," she says. "There are more no-shows for interviews and applicants can turn down offers as they probably have more than one in hand."
Tourism had a banner year with over 20 million visitors arriving for the first time and, in light of the challenges faced in 2003, the Hong Kong Tourism Board's chairman Selina Chow believes this is a "truly remarkable achievement". Recruiters in the sector remain in buoyant mood and, fuelled by the influx of mainland tourists, income for retailers, restaurants and hotels is expected to grow by at least 10 percent in 2005. With visitor numbers reaching new highs, hotel industry job vacancies in the final quarter were on average 100 per month more than in 2003.
The opening of Hong Kong Disneyland in late 2005 is expected to provide further impetus, with government estimates projecting a need for around 12,000 employees overall. Ms Kavanagh mentions, though, that if the whole employment market improves, it may not necessarily be easy to fill all those positions.
In 2004, the maufacturing, retail and banking sectors led recruitment demand, followed by transport and logistics. A similar pattern is forecast for 2005, with perhaps more emphasis also on the electronics and hospitality sectors. Mr Chown points out that engineering should be strong, especially if planned infrastructure projects go ahead.
According to the Manpower Employment Outlook Survey released in mid-December 2004, 30 percent of employers anticipate hiring in the first quarter of 2005, while only 4 percent expect to reduce staff numbers. The general optimism these figures represent leads Deborah Morgan, regional area manager for Manpower Hong Kong and Philippines, to believe that managers have acted upon the rebound and taken advantage of the increased business opportunities in mainland China.
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Data compiled by Career Times Research Team
Taken from Career Times 2005/01/14
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