31 March 2026, Hong Kong (SAR), China ("Hong Kong") – The findings from KPMG China’s Hong Kong Employment Outlook point to a more cautious hiring outlook for Hong Kong in 2026, with organisations prioritising cost control, productivity and targeted upskilling over broad-based recruitment. At the same time, wider adoption of artificial intelligence (AI) is reshaping the skills employers value and the challenges businesses face as they scale technology responsibly.
Headcount expectations more cautious, with growth concentrated in revenue‑driving roles
Across the market, organisations are taking a more cautious approach to workforce expansion, prioritising cost management while seizing opportunities presented by advancements in AI amidst ongoing global uncertainty. For the first time since 2020, C‑suite respondents were more likely than the broader workforce to anticipate headcount reductions – 29% expected decreases, while an equal proportion anticipated increases.
Sentiment across the wider respondent base was similarly subdued. Only 19% forecast headcount growth in 2026 – the weakest reading since 2020. At the same time, 22% expected reductions and 24% remained unsure.
Sector trends showed greater variation. The innovation and technology (I&T) sector remained the most expansionary, supported by continued investment in specialist skills such as AI, cloud engineering and cybersecurity. Yet even here, a growing number of respondents anticipate reductions in headcount compared with 2025, as organisations streamline traditional IT functions through automation and process optimisation.
Against this more cautious backdrop, hiring intentions have become increasingly targeted across sectors. Organisations planning to expand headcount are focusing recruitment efforts on sales and other fee‑earning roles that directly support revenue generation. In contrast, anticipated reductions are centred on operations and support functions – including finance, accounting, HR and administration – as employers look to improve efficiency and reshape internal processes to meet changing business needs.
Rather than broad-based recruitment, many companies are prioritising roles that directly support revenue growth or help manage increasingly sophisticated, technology-enabled operations. As digital transformation accelerates, we are seeing a growing need for professionals who can bridge business strategy, technology and operational delivery.
Job mobility and salary expectations moderate as employees prioritise stability
Employee mobility continues to ease as professionals place greater emphasis on stability. 21% of respondents plan to actively seek a new employer in 2026, down from 28% in the second half of 2025. Salary expectations are moderating as well, with most respondents anticipating either no change or a 3–5% increase – broadly in line with Hong Kong government statistics showing a 3.3% rise in the Nominal Wage Index and a 1.8% increase in the Real Wage Index as of September 20251.
Underlying pay outcomes last year, however, differed notably by seniority. 76% of respondents at assistant manager level or below received salary increases, compared with 30% of C‑level respondents, pointing to a more cautious approach to senior‑level remuneration.
Employees are approaching career decisions more thoughtfully, prioritising stability, meaningful work and steady progression rather than rapid job changes. Organisations that invest in learning and development, digital capabilities and career versatility will be better positioned to attract and retain talent in an increasingly competitive environment.
International mobility and flexibility strengthen Hong Kong’s talent proposition
Survey responses show that Hong Kong SAR continues to consolidate its position as a regional and global talent hub, with organisations continuing to source skills from the Chinese Mainland and overseas markets to address specialised capability gaps and support international expansion. Demand for external talent is strongest in sales and marketing (43%), technology and IT (37%), operations and supply chain (28%), and research and development (24%).
Recruitment efforts are particularly focused on the Chinese Mainland, the United Kingdom and the United States, supported by the Government’s expanding suite of talent admission schemes – now totalling nine programmes2 – aimed at attracting high‑calibre professionals to live and work in the city.
Flexible working models and regional mobility are enhancing Hong Kong’s attractiveness as a talent destination. As hybrid working becomes more established, we are seeing a rise in cross-border commuting and mobility within the Greater Bay Area. At the same time, Hong Kong continues to offer a highly international business environment, strong connectivity and an increasingly supportive ecosystem for global talent and their families. These factors help reinforce the city’s role as a gateway for professionals seeking dynamic career opportunities in Asia.
Organisations expand AI deployment amid growing digital skills needs
The proportion of organisations widely deploying AI has risen from 8% in 2025 to 24% in 2026, indicating a shift toward broader integration within core business processes rather than isolated use cases. As adoption expands, AI literacy has become a significantly more critical workforce capability. Nearly half of respondents (47%) identified AI understanding and application as a priority skill for employees in 2026, up from 20% a year earlier.
Despite this momentum, organisations continue to face practical challenges in scaling AI. Respondents highlighted difficulty assessing vendor quality as a key barrier, alongside ongoing concerns around data privacy and cybersecurity. A shortage of internal expertise also remained a significant constraint, underscoring the need for sustained investment in talent and capability building.
As AI becomes integral to business, the challenge now lies not in technology but in managing a hybrid workforce of humans and machines.
About The Survey
Conducted between 12 – 25 January 2026, the survey gathered insights from close to 300 business executives and professionals across a broad range of industries on employment trends and career opportunities in Hong Kong. 60% of respondents’ organisations are headquartered in Hong Kong, while 41% of respondents hold leadership positions, including 15% at C-suite level and 26% department heads or equivalent.
About KPMG’s People Services
In an environment of emerging global trends and challenges, an organisation’s workforce is central to its survival and growth. From acquiring the right talent, mobilising talent across borders, through to designing reward policies and navigating tax and legal complexities, KPMG People Services provides a full range of services to organisations and individuals to support their strategic and operational business needs. Click here to learn more how KPMG’s People Services can help you and your organisation.
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KPMG in China has offices located in 31 cities with over 14, 000 partners and staff, in Beijing, Changchun, Changsha, Chengdu, Chongqing, Dalian, Dongguan, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Hefei, Jinan, Nanjing, Nantong, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Taiyuan, Tianjin, Wuhan, Wuxi, Xiamen, Xi'an, Zhengzhou, Hong Kong SAR and Macau SAR. It started operations in Hong Kong in 1945. In 1992, KPMG became the first international accounting network to be granted a joint venture licence in the Chinese Mainland. In 2012, KPMG became the first among the “Big Four” in the Chinese Mainland to convert from a joint venture to a special general partnership.
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