A global employment agency said on Tuesday that almost half of the companies it surveyed in Hong Kong plan to hire new staff in the first quarter of 2024.

The Manpower Group interviewed just over 40,000 employers in 41 countries and regions around the world.

Of the 525 firms interviewed in Hong Kong, 44 percent said they intend to recruit new employees over the next three months.

15 percent plan to downsize, while 40 percent said they will freeze their headcount.

"Employers hold stable hiring pace across all sectors in the upcoming quarter as the net employment outlook remains very positive," the group’s senior vice president, Lancy Chui said.

She said the communication services sector looks most promising.

“Telecommunications companies have announced their 5G network optimisation plans to upgrade user experience as well as expand their market share. This plan is expected to stimulate growth in the communication sector and create a substantial number of job opportunities.”

Chui added that talent shortage is still a problem in the SAR, with 78 percent of surveyed companies saying they’ve encountered difficulties in filling positions.

Even though this year's figure has gone down from last year, it is still higher than the global average, she said.