Salary growth for Hong Kong degree graduates slows to 5-year low

Average monthly salary rises by just 2 per cent to HK$28,000 as underemployment hits record high A graduation ceremony at the Chinese University of Hong Kong’s Chung Chi College Chapel in 2023. Photo: Elson Li Salary growth for Hong Kong degree graduates slowed to a five-year low in 2025, with average annual earnings rising by just 2 per cent and sitting at HK$28,000 (US$3,570) a month as underemployment hit a record high. The University Grants Committee (UGC) released the graduate employment figures for last year on its website on Friday. According to the data, the average annual salary of degree graduates stood at HK$336,000. The figure represented an average of HK$28,000 per month and a 2 per cent increase from the year before. The UGC also found that engineering and technology graduates had suffered a drop in earnings across sub-degree, degree and taught postgraduate levels, with the salary decline ranging from 0.3 to 5 per cent year on year. The trend prompted an expert to warn that artificial intelligence (AI) had removed the need for many entry-level jobs, especially in the technology sector, which was heavily reliant on such software. The overall annual salary growth, at 2 per cent, was the lowest recorded between 2020 and 2025, with past years seeing annual increments of about 4 to 8 per cent. In 2019, when the city was affected by anti-government demonstrations, the average annual salary of degree graduates dropped by 1 per cent year on year. Last year’s statistics were compiled from data submitted by all eight publicly funded universities. Graduates of the Chinese University of Hong Kong recorded the biggest jump in salary for 2025, up 5 per cent from the previous year. But those from the University of Hong Kong recorded a decrease of 0.3 per cent, making it the only institution to log a dip despite its graduates having the highest average salaries among the eight universities. The survey also showed the underemployment rate for bachelor’s degree graduates had reached levels not seen since 2016, surging to 6.1 per cent from 4.2 per cent in 2024. Under the UGC’s definition, underemployed graduates include those who are available for or have sought additional work but are involuntarily working fewer than 35 hours a week, or are employed on a part-time or temporary basis. Meanwhile, the unemployment rate stood at around 2.2 per cent, slightly dropping from the previous year’s level of 2.4 per cent. Francis Fong, honorary president of the Hong Kong Information Technology Federation, says the widespread deployment of AI has automated most entry-level jobs. MAY TSE The average annual salary for graduates of publicly funded sub-degree programmes stood at HK$252,000 or HK$21,000 a month – a rise of 5 per cent year on year. Unhandled type: inline-plus-widget {"type":"inline-plus-widget"} Graduates of UGC-funded taught postgraduate programmes experienced a 2 per cent drop in annual salaries, falling from HK$481,000 to HK$470,000. Graduates in medical, dental and other health postgraduate programmes recorded an earnings drop of 7 per cent, falling to HK$674,000, but remained the top earners among all disciplines. For degree programmes, graduates from the same field also remained the top earners, making HK$554,000 a year – 2.6 per cent more than 2024. The engineering and technology sector was the only category in which graduates at all levels recorded decreases in salaries, with the extent of the decline ranging from 0.3 per cent to 5 per cent. Francis Fong Po-kiu, honorary president of the Hong Kong Information Technology Federation, said the widespread deployment of AI had automated most entry-level jobs. The development had caused a structural shift in companies’ hiring strategies and left employers less willing to offer higher salaries to recruit fresh graduates for entry-level roles, the expert said. “If bosses see that AI can handle the work anyway, they will not feel the need to hire basic staff. They would rather hire someone more skilled,” he said. “As a result, when it comes to hiring, they will not necessarily hire people with no experience, or they’ll offer a lower salary to hire fresh graduates.” Fong said the situation in the technology field was particularly difficult as it was an AI-heavy sector. He urged university students to master practical AI applications to demonstrate clear added value to employers.