Majority expects Hong Kong's economic situation to worsen in 2020

Only 48% of employees expect employers to do better this year.

Almost seven in 10, or 69%, of Hong Kong residents expect the economic situation to further deteriorate in 2020, Randstad’s Workmonitor Q4 2019 survey revealed.

Also read: Hong Kong crashes into recession in 2019

The percentage is highest amongst people aged between 55-67 years old, where 78% believes that the island’s economy will continue to weaken through 2020. Those aged 18-34 were the most optimistic, although 65% still indicated gloomy predictions for the economy this year.

As for the workforce, only 48% or less than half expect their employers to perform better in 2020 compared to last year.

““Hongkongers are aware of the negative impacts that the global trade war and local unrest have on the business environment and employment rate,” noted Natellie Sun, managing director of search and section in Greater China at Randstad. “Even so, Hong Kong retains its position as the regional hub for many finance and technology companies, and there are still many unexplored opportunities for businesses to grow through investments and innovation. Hong Kong will also continue to benefit significantly from its highly resilient and diverse workforce.”

But whilst citizens remained iffy on Hong Kong’s economic prospects, they are still expecting pay raises and bonuses. Sixty-three percent of respondents expect to receive a pay raise whilst 61% want to receive a one-time bonus at the end of their fiscal year.

“Hongkongers are very competitive in nature. Job titles and salaries are very important to local employees, as these elements are seen as a direct measurement of how well they are doing compared to their peers. A factor contributing to the high bonus expectations could also be from staff in customer-facing roles, who were instructed to take unpaid leave as a result of the local protests. This group of workers are hoping their employers could compensate them for their loss of income through a one-time bonus,” added Sun.

Also read: Hong Kong's retail sector may see its worst period yet as stores close down

Randstad has not yet observed any significant dip in hiring activities in Q1 2020. “Even as Hong Kong is expected to enter a period of recession in 2020 and with the COVID-19 outbreak, we have not yet observed a significant dip in hiring activities in quarter one,” said Sun.

However, there is a significant decrease with face-to-face interviews following the outbreak, Sun added, which may slow hiring.

“Due to the COVID-19 outbreak, we have also seen more companies replace face-to-face interviews with video or phone interviews. However, face-to-face interviews are essential when building relationships in Asian culture, and the lack of human interaction could significantly slow down the hiring process. Employers would still want to meet with the potential employee to ascertain culture and personality fit before making an offer,” she concluded.