Hong Kong's labor market sentiment has deteriorated sharply, with the city's net employment outlook for the third quarter falling to minus 9 percent, according to new data from ManpowerGroup.
The figure represents a 20 percentage-point drop from the previous quarter, marking a significant acceleration in hiring caution among employers across the financial hub.
The contraction coincides with growing concerns that artificial intelligence is displacing traditional entry-level roles, leaving fresh graduates with fewer opportunities to build practical experience.
Experts warn that the rapid adoption of AI tools for routine tasks is disrupting the conventional career ladder, forcing a structural shift in how companies recruit and train junior staff.
This development follows a broader regional trend where employers are increasingly demanding specialized AI expertise from new hires.
Recent surveys indicate that AI skills are now required for a substantial share of graduate positions in neighboring markets, suggesting that Hong Kong's hiring freeze may reflect a deeper skills mismatch rather than cyclical weakness alone.