Positive momentum in early 2025 APAC hiring trends | Wilson

APAC business outlook for 2025

Asia Pacific has endured challenging times in 2023/24; however, the overall market sentiment is more positive today than it has been for 24 months.  The general sense is one of cautious optimism as we look into 2025 and beyond.

Globally, we are living with unprecedented geopolitical tension, which leads to uncertainty. Sadly, there remain continued conflict zones in Europe and the Middle East.  These factors do, of course, play a significant role in confidence, as CEOs and political leaders seek to navigate a volatile time. However, although Asia is not immune to influence of these factors, we do see that the impact short term is felt less keenly than NAM and EMEA.

In this report, we delve into the latest observations and trends shaping the Asia market, highlighting key developments, challenges, and hiring trends across the region.

Hong Kong

Overview

Last year was a challenging one for Hong Kong (HK), with GDP growing 2.5% year over year (YoY). This was mainly supported by the external sector, particularly within services. However, the unemployment rate was consistent from Q4 2023 to Q4 2024 at 3.1%.

With retail and other economic indicators, the latest situation is challenging at best. Retail sales for H2 declined 8.15% YoY. From the data, we’re seeing an increase in HK residents’ outbound trips coupled with changing consumer spending trends, particularly from Mainland tourists. To help, the HK Govt has rolled out a blueprint to boost the tourism industry, including strategies around sports, culture, and mega events to boost the economy by HK$120 billion and employ 210,000 people over the next 5 years.

Hong Kong is expected to see a continuing increase in Mainland visitor numbers – up to 3.5% YoY growth on February 5th. Mainland tourists make up 85% of total tourists, while other tourists rose 11%. As retail leasing numbers have decreased significantly over the last few years with the permanent departure of several well-known retail and F&B outlets, we’re noticing Mainland Chinese brands taking up vacant locations across the city to cater to the changing population.

The Government implemented a Top Talent Pass Scheme in December 2022 to combat a skills gap that was widened by substantial emigration to destinations like Canada and the UK. Many of these outbound Hong Kongers were well educated and highly skilled workers. That said, more than 90% of the approved applications from the highly skilled migrant program are from Mainland China – so hope remains to fill the skills gap in the future around key industries from financial services to communications professionals.

Hong Kong has endured a difficult time with companies moving roles out of the city in 23/24, principally to Singapore. Our observation is that this trend has stopped, and many firms are now seeking to replace headcount in the HK as a priority. The city is seeing an inflow of professionals and seems to have a spring back in its step in 2025.

Conversations with business leaders and C-level executives indicate a need and desire to hire, with almost half of companies anticipating they will add headcount in 2025.  

Key industries we see growth

Although the financial service industry contributes more than 23% of the city’s GDP, there are other sectors which we continue to expect growth:

• Tourism: Aided by the government’s strategy to attract new and returning tourists through mega events, cultural offerings, and sports will increase spend with hotels, F&B, and airlines. Hotel occupancy was up to 90% in Jan 2025. We have seen an increase in high level appointments in the hospitality sector, particularly within transformation skill sets.
• Insurance: Including jobs within transformation, strategy, and communications have been more visible during the backend of 2024 and into this year.
• Education: Spanning finance, IT, and transformation.

Hot skills and trends

• Transformation: The need to futureproof organisations through business transformation is a companywide journey. We are seeing an increase in Data Transformation, Finance System Transformation, Implementation Specialists, Business Technology Specialists, and Customer Experience Transformation roles.
• Digital and Technology: HK continues to see a skills shortage in frontend and backend Developers, with solid software engineers needed across sectors. We are also seeing the need for more strategic digital platform experts. Luxury brands as well mass brands continue to search for the optimum online and offline mix – this has led to some high-profile eCommerce openings.
• Communications: there’s been an increase in the demand for senior comms professionals. This may be due to an increase in M&A activity as well as the ongoing need for both internal and external strategic messaging.
• Recent Reconsolidation/Relocation of Retail/Apparels: Regional sourcing hubs from Hong Kong to Singapore, e.g. Vans, Meijer.
• Language skills: There is a considerable increase in roles requiring Mandarin, seen across all sectors.

China

Overview

China's economic performance over the past two quarters reflected a mix of challenges and recovery. In 2024, GDP grew 5.0% YoY, aligning with the government's target set during the two sessions. The unemployment rate remained stable at around 5.0% in Q4, signaling a cautious but stable labor market.

Q4 2024 saw accelerated growth at 5.4%, exceeding expectations, driven by pro-growth policies, fiscal stimulus, and monetary easing. Key government measures included cuts to benchmark lending rates, reductions in banks’ reserve requirement ratios, and a 10 trillion yuan fiscal package aimed at addressing local government debt risks. Additionally, a trade-in program for consumer goods – targeting appliances and automobiles – was expanded to revive consumption.

Key industries we see growth

When looking at different sectors, we found uneven recovery. The manufacturing and service sectors showed resilience despite global economic headwinds, while domestic consumption remained moderate, impacted by cautious consumer sentiment and a weaker property market.

• Technology and AI: AI has been a top priority in China’s industrial landscape, with strong government backing and rapid adoption across sectors such as healthcare, consumer goods, and smart manufacturing. The focus is on AI-driven automation, digital transformation, and advanced analytics.
• Renewable energy and electric vehicles (EVs): As the world’s largest neighborhood electric vehicle (NEV) market, China is driving a low-carbon economy through investments in EVs, battery technology, and renewable energy. Strong policies fuel clean energy innovation and supply chain localisation, increasing demand for talent in research and development (R&D), sustainability, and supply chain management.
• Healthcare and wellness: Post-pandemic, Chinese consumers have embraced a holistic understanding of wellness, prioritising physical, mental, and emotional health. This shift has spurred demand for solutions that address all aspects of well-being, from fitness and nutrition to mental health and stress management
• Cultural tourism and entertainment: Consumer behavior is transitioning from a focus from functionality to self-fulfillment, emotional value, and experiences. This will present opportunities in hospitality, leisure products, and IP-entertainment products.
• Cross-border e-commerce and retail: While domestic consumption remains cautious, cross-border e-commerce platforms have seen strong growth. Brands targeting overseas markets require talent in digital marketing, supply chain, and logistics.
• Multinational corporation (MNC) carve-out and restructuring: MNCs in China are increasingly restructuring operations, selling non-core assets, or spinning off divisions amid regulatory shifts and evolving market strategies. This trend is driving demand for corporate finance, mergers and acquisitions (M&A), and transformation leadership roles.

Hot skills and trends

• Demand for global and localised leadership: With Chinese enterprises accelerating overseas expansion, there is strong demand for senior leaders – particularly in business, finance, and HR – who combine global exposure with local market expertise.
• Finance and risk management: As China continues to navigate financial market reforms and regulatory changes, demand for compliance, risk management, and corporate finance professionals remain strong.
• Supply chain and logistics: With geopolitical shifts impacting global trade, China is reinforcing supply chain resilience, driving demand for logistics and procurement experts.
• Data privacy and compliance: Strengthened regulations on data security and financial compliance have led to increased hiring in these areas.
• Digital transformation and AI talents: As AI is increasingly applied in organisations, there is a surge in demand not only for AI engineers, but also for HR, finance, and supply chain professionals who can implement and optimise AI-driven tools and processes to enhance and streamline workforce efficiency and business operations.

Singapore

Overview

Singapore’s economy registered a robust GDP growth of 4.4% in 2024. The economic growth projections for 2025 indicate a moderation compared to the previous year. The Ministry of Trade and Industry (MTI) has maintained its forecast, expecting the GDP to expand between 1.0% and 3.0% in 2025.  The anticipated moderation in growth is attributed to several factors, including potential global trade frictions and geopolitical tensions that could impact Singapore’s open economy.  Despite these challenges, sectors such as manufacturing and services are expected to provide resilience, supported by ongoing investments in technology and innovation.

Key industries we see growth

Singapore’s economy experienced notable growth across several key industry sectors:

• Technology and AI: For Singapore, AI is also a top priority, with a strong emphasis on AI-driven automation, digital transformation, and advanced analytics.
• Deep tech startups: We see increased investments and increased hiring in the deep technology sector.
• Healthcare and life sciences: We continue to see strong growth in healthcare and life sciences. This includes sectors in healthcare service, medical devices and pharmaceuticals due to the increased demand for community care and home-based healthcare services from an aging population.
• Semiconductors: We see an increase in hiring in the semiconductors and precision engineering sector. This is driven by strong global demand for semiconductors.
• AI-driven diagnostics: Particularly in radiology, CT scans, MRIs, and other imaging technologies.
• Manufacturing: The manufacturing sector attracted substantial fixed asset investments, particularly in semiconductors and biomedical manufacturing, indicating robust growth and a positive outlook for these industries.

Hot skills and trends

• Digitalisation and innovation: Digital skills are highly sought after across sectors. There has been a slew of technological developments from robotics, artificial intelligence, machine learning and blockchain. Big data and analytics are also advancing and are playing an integral role across different industries.
• AI and machine learning: Expertise in AI and machine learning (ML) is in demand due to the rise of AI applications and digital transformation initiatives.
• Cybersecurity: Amidst rising cyber threats, we see an increase in demand for talents in cybersecurity to safeguard digital assets.
• Cloud computing: Knowledge of cloud platforms and services is essential as businesses migrate to cloud infrastructures.
• Regulatory and compliance professionals: As companies look to improve their systems and process flows across industries, professionals experienced in regulatory and compliance are highly sought after.
• Process engineering design: Designing efficient industrial processes is vital for manufacturing and production sectors.
• Increase in demand for multi skilled candidates: With more companies maintaining a lean structure, we see an increase in positions that require individuals with multi-skills that could span across different functional areas.
• Business transformation skills: Entrepreneurial mindset, change management, and cultural adaptability are increasingly valued.
• Skills-based hiring: An increasing shift is happening on focusing less on traditional qualifications to more skills-based hiring. This approach is helping businesses bridge talent gaps, particularly in digital and tech-driven sectors.

While companies in Singapore remain cautious due to global economic headwinds and inflation concerns, they continue to recruit strategically to support core business functions and growth areas, reflecting a balanced optimism for future expansion.

Overall, while uncertainty persists, both economic and employment outlooks for 2025 are characterised by steady, positive momentum supported by strategic investments in technology and a dynamic shift toward skills-based recruitment.

Japan

Overview

Japan's recruitment market in late 2024 and early 2025 showcased economic resilience with notable GDP growth and low unemployment. However, persistent labor shortages, especially in smaller firms, and demographic challenges underscore the need for strategic workforce planning and policy interventions.

Key industries we see growth:

• Technology sector: There's a significant demand for IT professionals, especially in areas like AI, cybersecurity, and cloud computing. Japan faces a shortage of approximately 220,000 IT workers, highlighting opportunities for talent in these fields.
• Data center development: Driven by the surge in e-commerce and digital services, there's a race to meet data center demand. This growth necessitates talent in property desk, facility management, and construction project management roles.
• Green transformation and ESG investment: Japan's commitment to achieving net-zero greenhouse gas emissions by 2050 has spurred ESG investments. This trend creates demand for professionals in green construction and sustainability roles.

Hot skills and trends:

• Cybersecurity expertise: With the projected growth of Japan's cybersecurity market from $18 billion in 2024 to $43.3 billion by 2033, there's a heightened need for cybersecurity professionals, particularly in cloud security and ethical hacking.
• Data-related skills: Proficiency in data analysis, AI, and machine learning is increasingly sought after as companies leverage data-driven strategies.
• Multilingual abilities: As businesses globalize, there's a growing demand for professionals fluent in multiple languages to navigate international markets.

Key observations on employers' sentiments

• Adaptability: For many organisations, the need to navigate rapidly shifting markets and technologies has never been greater. This requires a curated approach to taking on uncertainty in roles through upskilling, which is now the expectation, rather than the exception.
• Compliance: With evolving policies, prioritising clients that understand regulatory awareness and compliance across industries will be a key differentiator.
• Skills: Focusing hiring efforts around versatile roles helps streamline headcounts across different functions, especially candidates with a forward-thinking mindset and collaboration skills. This will be important to boost efficiency and helping organisations bring in talent with necessary skills to drive innovation and optimise costs.
• Work models: In the constantly evolving work environment, there’s been moves to adjust to flexible work models, such as remote and hybrid arrangements, to attract and retain great talent.
• Labor shortages: There’s increased competition for specialised talent in fields like IT and engineering.

Key sentiments from candidates

• Stability: Due to unpredictable market conditions, there’s a clear focus on evaluating job stability and long-term career growth over uncertainty or startup companies. A company that offers a stable working environment will encourage new ideas, creativity, and lead to greater efficiency over time. Candidates are evaluating financial stability and long-term career prospects when making job moves, given ongoing economic uncertainties.
• Learning opportunities: Career development and overall growth are major factors candidates seek in their job search. For this reason, a comprehensive learning & development (L&D) program is vital for organisations to both retain and engage employees.
• Employee well-being: Jobseekers feel more valued when their needs are met, both mentally and financially. Organisations that have focused on employee well-being have happier, more productive people.
• Purpose-driven roles: Candidates are increasingly drawn to roles that align with personal values, especially those contributing to sustainability and societal impact.
• Work-life balance: There’s a greater desire for positions that provide flexibility to achieve better overall work-life balance in day-to-day life.