Hong Kong Degree Graduates Face 5-Year Low Salary Growth
· news
Salary Growth for Hong Kong Degree Graduates Slows to 5-Year Low
The latest data on salary growth for Hong Kong degree graduates paints a bleak picture, with average annual earnings rising by just 2% in 2025. This marks the lowest recorded rate of increase over the past five years.
Underemployment is at an all-time high, and nearly a third of graduates are unable to find work that matches their skills and qualifications. Experts point to artificial intelligence as a primary culprit behind this trend. The tech sector, which has been touted as a promising area for young professionals, is particularly hard hit. Engineering and technology graduates have seen their earnings drop by as much as 5% in some cases.
Historically, Hong Kong has been a bastion of economic prosperity, with young professionals enjoying significant earning potential right out of the gate. However, these numbers suggest that this is no longer the case. The city’s competitive job market and limited career advancement opportunities have long been cited as major drawbacks for many graduates. Now, even the initial salary boost is under threat.
The impact on individual lives cannot be overstated. For those already struggling to make ends meet, a 2% pay rise may not seem like much of an improvement at all. And what about those facing a potential lifetime of underemployment? The psychological toll of feeling undervalued and unfulfilled can be severe.
This trend is not unique to Hong Kong. Around the world, there is growing concern about the role of automation in displacing human workers. The World Economic Forum has warned of widespread job displacement due to AI, with as many as 38% of jobs at risk by 2025. While these numbers are not directly applicable to Hong Kong’s situation, they suggest that this is a global issue requiring a coordinated response.
To address the challenges facing Hong Kong’s young professionals, policymakers must work closely with educators and industry leaders to develop more relevant curricula and provide better support for graduates struggling to find work. However, they also need to confront the role of AI in displacing human workers. Rather than simply warning about the dangers of automation, we should explore ways to adapt our workforce to this new reality.
This might involve retraining programs, new forms of social support, or changes to the way we fund education and reeducation. Ultimately, it’s up to all of us – policymakers, educators, industry leaders, and ordinary citizens – to come together and create a more inclusive, adaptable economy that values human talent in all its forms.
Reader Views
- CMColumnist M. Reid · opinion columnist
The stark reality facing Hong Kong's degree graduates is not just about stagnant salaries, but also a shrinking pool of high-skilled jobs that can absorb their talents. While AI may be the primary driver behind this trend, another crucial factor is at play: the city's failure to adapt its education system to the changing job market. Unless we rethink how we equip our students with relevant skills and training, we risk perpetuating a cycle of underemployment and wasted potential among our brightest young minds.
- EKEditor K. Wells · editor
The article highlights the elephant in the room: Hong Kong's degree graduates are facing unprecedented salary stagnation. What's often overlooked is the role of educational institutions themselves. With universities increasingly tied to private interests, are they more focused on churning out high-earning professionals or genuinely preparing students for a rapidly changing job market? It's time for policymakers and educators to have an honest conversation about the mismatch between the skills we're teaching and the jobs that exist today.
- ADAnalyst D. Park · policy analyst
The alarming trend of stagnant salary growth for Hong Kong degree graduates is not merely a reflection of the city's economic health, but also a symptom of a more profound issue: the mismatch between industry demands and education systems. While the article highlights the impact of AI on job displacement, it neglects to mention the pressing need for vocational training that equips students with skills adaptable to an increasingly automated workforce. By ignoring this gap, we risk creating a generation of underutilized talent.