Hong Kong’s overall wage pressure tops a global index

Hong Kong has been given a score of 10.0 – the highest possible – for overall wage pressure in a global skills index, showing that wages are increasing above historic levels as employers compete for professionals.

The Hays Global Skills Index, produced in collaboration with Oxford Economics, ranks Hong Kong 5th on the list of 31 countries overall for efficiency of the skilled labour market (behind Belgium, Italy, Singapore and Denmark). But a deeper dive into the findings shows that Hong Kong’s employers face a tight labour market, particularly for highly-skilled professionals.

A score of 10.0 for overall wage pressure shows that real wages in Hong Kong are increasing much quicker than the longer term trend. This indicates Hong Kong is on the verge of an exceedingly tight labour market. No other country received the top score of 10.0 for overall wage pressure.

Hong Kong’s economy is growing at below the long-term average, but the strong demand for labour has seen wage growth of 5 per cent annually.

 “In fact, wages are increasing much quicker than we have historically seen. This tells us that overall the labour market is tight as employers compete for talent based on salary. It also shows that further salary increases will likely do little to alleviate the shortage of highly-skilled candidates.” says Dean Stallard, Regional Director of Hays in Hong Kong.

Hong Kong’s economy is growing at below the long-term average, but the strong demand for labour has seen wage growth of 5 per cent annually.

Hong Kong’s overall score rose from 4.1 in 2013 to 4.5 in 2014, further demonstrating that employers face more competition for key talent.

“As a result, candidates with in-demand skills can be confident of securing their next career move,” said Dean. “But for employers, there is a need to look at more innovative strategies to attract and retain top talent.”

The Hays Global Skills Index assesses the efficiency of the skilled labour market in 31 countries, or its ability to supply skilled labour. A score of 5.0 indicates a balanced picture for labour markets, a score close to 0 indicates less intense competition for vacancies, and a score close to 10 shows severe difficulty in finding skills.

Source: Hays Hong Kong
Edited by: jobsDB HK