Hong Kong’s economic and employment prospects reflect a blend of resilience and cautious optimism, according to recent reports from KPMG.
Three key updates—the Hong Kong Employment Outlook Report, insights into the trust industry’s growth, and an analysis of government reserves—paint a picture of a city navigating challenges while leveraging its strengths.
These developments highlight Hong Kong’s adaptability and potential as a financial hub, even amidst global uncertainties.
The Hong Kong Employment Outlook Report, released by KPMG in March 2025, signals a cautious shift in the city’s job market.
Surveying professionals across industries, the report notes a dip in salary expectations, with 74% of respondents anticipating a pay rise in 2025, down from 78% the previous year.
This cooling optimism reflects broader economic headwinds, including global inflationary pressures and regional competition.
Headcount expectations are similarly tempered, with employers adopting a wait-and-see approach amid uncertainty.
However, sectors like technology and financial services continue to show resilience, buoyed by Hong Kong’s role as a gateway to mainland China.
KPMG’s analysis suggests that while the labor market is tightening, the city’s talent pool remains a draw for businesses seeking skilled professionals.
In parallel, Hong Kong’s trust industry is emerging as a high-potential ecosystem, as outlined in a joint report by KPMG and the Hong Kong Trustees’ Association (HKTA).
The sector is poised for growth, driven by enhanced regulatory frameworks that boost credibility and investor confidence.
Stricter oversight and transparency measures have positioned Hong Kong as a competitive player in wealth management, appealing to high-net-worth individuals and family offices.
The report highlights how these regulations align with global standards, making the city an attractive alternative to traditional trust hubs like Singapore.
This development underscores Hong Kong’s ability to capitalize on its financial expertise, potentially offsetting slower growth in other areas.
Adding to this narrative, KPMG’s February 2025 report on government reserves offers a broader economic perspective.
Hong Kong’s fiscal reserves remain robust, providing a buffer against external shocks.
However, KPMG advocates for measures to sustain long-term growth, urging the government to diversify revenue streams beyond its conservative fiscal approach.
The report recommends expanding the asset management and innovation industries, citing their potential to drive economic momentum.
By fostering fintech, green technology, and other high-growth sectors, Hong Kong could reinforce its status as an innovation hub.
This aligns with efforts to attract global investment and talent, leveraging the city’s strategic position in the Greater Bay Area.
Together, these updates suggest a pivotal moment for Hong Kong.
The employment market’s cautious outlook reflects near-term challenges, yet the trust industry’s rise and strong reserves signal underlying strengths.
By doubling down on regulation, innovation, and diversification, Hong Kong is laying the groundwork for gradual recovery and sustainable growth.
While global uncertainties persist, the city’s adaptability—rooted in its financial acumen and progressive policies—could begin to potentially pave the way for a resurgence.
As 2025 unfolds, Hong Kong’s ability to balance stability with key objectives will likely determine its trajectory in an increasingly competitive business environment.