Employment outlook weakest since 2003
Updated: 2008-12-10 07:34
By Teddy Ng(HK Edition)
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Plans for new hirings are at the lowest level since 2003.
Hong Kong employers' intention to hire new people is at the lowest level in years and companies looking for new employees are generally only willing to hire for short-term contracts, according to a survey by employment service agency Manpower.
In its October survey, Manpower found only 8 percent of Hong Kong employers plan to increase staff in the next quarter. The net employment outlook, meaning the percentage of employers planning to hire minus the percentage of those planning to cut staff, stands at 3 percent, the lowest level since the end of 2003.
The sector worst hit is mining and construction, with an employment outlook of -12 percent.
The outlook for manufacturing is also weak at 1 percent, transportation and utilities is 5 percent and wholesale and retail is 3 percent.
The finance, insurance and real estate sectors, severely hit by the credit crunch have an outlook of 8 percent.
"Financial institutions based in the United States are particularly hard hit but some local and medium-sized banks in Hong Kong are planning to open more branches to develop retail banking," said Manpower's Hong Kong and Macao general manager Lancy Chui.
The survey found a double-digit outlook of 18 percent, driven by tourism development.
On Monday, the government announced a plan to create 60,000 jobs as part of an effort to boost the economy. Chui said the impact of the government plan could be reflected in the second quarter of 2009.
In the meantime, she expects companies to employ new staff on a short-term basis or on contracts.
"Companies want to enjoy more flexibility in human resources strategies," she said.
Chui's company employs an average of about 3,500 short-term or contract staff everyday for its clients. About half of them generally become permanent staff after completing a contract.
She urged employees to be less insistent on remuneration and the duration of contracts.
"They should seize opportunities to gain experience and wait for opportunities when the market recovers," she said.
Manpower director Ian Strutton also urged employees to be flexible.
He said financial institutions in mainland cities and other countries, such as Vietnam, are still recruiting more staff, and Hongkongers can seek opportunities there.
(HK Edition 12/10/2008 page1)