Hiring expectations of employers in Hong Kong have risen in the first quarter of 2008.

According to the quarterly report of recruitment consultant Hudson, 58% of the 683 employers surveyed expect to increase hiring in their companies in the first quarter of 2008, up from 54% in the previous quarter.

The report shows that hiring expectations of employers are at the highest level since the third quarter of 2006. The legal sector reports high expectations, with 65% of respondents saying that they will increase hiring. The increase is due mainly to the growth of private equity deals that require experienced lawyers in the areas of mergers and acquisitions, corporate and capital markets.

It is reported that salaries for new managerial hires will increase, with 59% of respondents saying that they will increase the starting salaries by more than 10% from the candidates’ current pay package. The report shows that 19% of respondents expect to increase the pay of candidates by more than 20%. More than 60% of the surveyed companies expect to provide bonuses of more than 10%, and 30% of the companies will offer bonuses of more than 20%.