Hiring expectations in Hong Kong drop by 10% in the fourth quarter of 2008, comparing with the previous quarter.

According to the report of recruitment consultant Hudson, hiring expectations have dropped in all markets surveyed, and Hong Kong has the steepest fall, from 42% in Q4 of 2008 to 32% in the previous quarter.

The report has shown that among the 862 Hong Kong executives surveyed, 32% expect to increase hiring in their companies, compared with 42% in the previous quarter and 54% in Q4 of 2007. This percentage represents the steepest fall in Asia, and is at a five-year low in Hong Kong. Mark Carriban, Managing Director, Asia, Hudson, comments, “Expectations to hire have dropped the most in Hong Kong out of the countries surveyed. However, the proportion of employers who are looking to cut headcount is still low.”

Among all sectors in Hong Kong, the legal sector has the highest hiring expectations, with 54% of respondents planning to increase headcount. For IT, 34% of respondents expect to increase hiring, down from 45% in Q3. As for banking and finance, the number of respondents planning to hire more has fallen from 47% in Q3 to 25%. According to the report, Hong Kong has been less affected by the subprime crisis than other global financial centres, and there is still recruitment activity among second tier banks with less global exposure.

In spite of a drop in hiring expectations, over half (57%) of employers in Hong Kong expect that their company’s performance will be good in 2009. Only 5% expect the performance to be poor.