Flat wages or a 5% decrease in salaries for Hong Kong graduates predicted by industry experts this year
Hong Kong Undergraduates Facing Flat or Decreased Salaries in 2024-25
The upcoming academic year, 2024-25, may see Hong Kong undergraduates facing a potential pay decrease or stagnant salaries as they enter the workforce. This prediction was made by Alexa Chow Yee-ping, managing director of ACTS Consulting.
Several factors are contributing to this trend. The economic and labor market conditions play a significant role. While specific minimum wage updates for Hong Kong are yet to be revealed, the broader Chinese labor market sees varying minimum wages across provinces, some updated in 2025. These indirectly affect regional labor costs and salary benchmarks relevant to Hong Kong employers. Economic pressures in the region might constrain salary growth.
High living costs, such as housing, education, and healthcare, could also affect real income for Hong Kong graduates. Similar to Singapore's workforce in 2025, where salary dissatisfaction persists despite pay increases due to high living costs, Hong Kong graduates may face similar issues.
The competitive job market with specific sector demands is another factor. According to data from The Education University of Hong Kong, graduates have competitive average starting salaries, but face intense competition in sought-after programmes, indicating that high applicant-to-place ratios could limit strong salary growth due to supply-demand dynamics.
Global and regional trends also have an impact. Other international reports show moderate salary increases in sectors with skill shortages, but also emphasize employer caution due to economic realities and cost pressures. If Hong Kong faces similar economic caution, this could keep undergraduate starting salaries flat or growing slowly.
Skills mismatch and recruitment challenges are another concern. Employers globally continue to struggle with attracting candidates with necessary skills, leading to selective salary adjustments favoring high-demand professions. Graduates without these in-demand skills may experience limited salary growth.
The government's top talent pass scheme is another factor affecting the salaries for undergraduates in the 2024-25 academic year. This scheme increases the influx of manpower in the job market, potentially affecting salary levels.
Experts suggest that youngsters should upskill themselves to improve their employment prospects in the current job market. Employers are also encouraged to offer competitive salaries to attract talent.
It's worth noting that the average annual salary for undergraduates in the 2023-24 academic year was HK$329,000 (US$42,180), and the average annual salary for undergraduates in the 2024-25 academic year represents a 4.8% increase from the class of 2023. However, the predicted pay decrease for undergraduates in the 2024-25 academic year is due to two factors: the city's transforming economy and changing consumption patterns, and geopolitical tensions.
The University Grants Committee, a government advisory body that allocates funding for higher education institutions in Hong Kong, has not yet revealed the average salary for the 2024-25 academic year. The predicted pay decrease for undergraduates in the 2024-25 academic year is attributed to a weak economy and a civil service salary freeze. The predictions about the pay of undergraduates were made by experts after the University Grants Committee revealed the average salary for the 2023-24 academic year. The average annual salary for undergraduates in the 2024-25 academic year is expected to mostly remain the same compared to the previous year.
In light of the predicted pay decrease or stagnant salaries for Hong Kong undergraduates in 2024-25, it is crucial for students to focus on education and self-development to improve their employment prospects. This is because, to secure better remuneration in the competitive job market, graduates may need diverse skills, including those in high-demand professions. Additionally, education and self-development can aid in adapting to the transforming economy and changing consumption patterns, thereby ensuring financial stability and a thriving career in the financial, business, and economic sectors.
