Contractor shortage emerges as top hiring hurdle in Hong Kong

Firms struggle to secure talent even as demand for contract workers grows.

Nearly three-quarters, at 71%, of organisations in Hong Kong said the limited availability of suitable candidates pose as the biggest barrier to hiring contractors, even as demand for contract talent continued to grow, according to Hays.

The finding comes from Hays' The Evolving Role of Contracting in Asia report, which surveyed 1,930 contractors and hiring managers across the region and was supplemented by data from the 2026 Hays Asia Salary Guide.

Demand for contractors remained firm in Hong Kong, with 45% of organisations considering hiring contract workers.

Over the past 12 months, 36% of employers increased their use of contractors, whilst 34% expect demand to rise further in the coming year.

The report found that organisations are primarily using contractors to maintain staffing cost flexibility and access specialist skills.

About 56% of respondents cited flexibility in staffing costs as a key reason for hiring contractors, whilst 51% said they sought specific expertise for project-based work. 

Another 44% said contractors help address difficulties in finding suitable permanent employees.

Despite the continued uptake of contract hiring, employers face increasing competition for talent as demand for experienced professionals outpaces supply in specialist roles.

Contractor expectations are also evolving.

Hays found that health insurance, paid time off, and professional development opportunities were amongst the most valued benefits for contract workers.

However, only 39% of contractors said they currently receive any form of non-monetary benefits.

“Organisations in Hong Kong are navigating a dual talent challenge, with shortages affecting both permanent and contract hiring,” said Adrian Lam, regional director at Hays Hong Kong SAR.

“Businesses still depend on contract talent to maintain cost flexibility and access specialist skills for project-based work, even as the market becomes increasingly constrained,” he added.

Lam said employers will need to take a more considered approach to positioning opportunities and engaging talent as competition for contractors intensifies.