China sees shift in Tech hiring: Decline in software development roles, but a surge for Project Managers as AI reshapes demand

 

 

AI is rapidly reshaping the job market, causing certain roles to decline while others gain prominence. According to Hays' report, 'The Future of Work: How AI is impacting your workforce’, technology roles will undergo substantial changes, requiring upskilling to reallocate resources effectively. 

 

Integrating AI into digital transformation efforts presents significant challenges for organisations, requiring the right vision, stakeholders, data, infrastructure, and skills. The report provides insights into the global tech talent landscape and offers actionable advice for effective technology implementation and adoption. This includes an analysis of global job volume from early 2022 to the end of 2024, offering insights into the demand for key skills and the impact of Gen AI, enabling organisations to adjust their digital transformation strategies accordingly. 

 

 

The report reveals that while Software Development remains the most in-demand skills globally, its demand saw a rapid decline in 2024 due to automation and talent redeployment. Organisations are encouraging the use of AI to enhance productivity by automating repetitive tasks, leading to a reduced demand for roles like software developers. This trend is expected to continue into 2025.

 

“Software Development roles declined significantly in China, with a 71 per cent reduction from 2022 to 2024,” said Sue Wei, Managing Director at Hays Greater China. “Neighbouring Hong Kong SAR faced even greater reductions, witnessing a 90 per cent decrease in these roles during the same period.”

 

Roles in Japan and Singapore declined 59 per cent and 66 per cent respectively from 2022 to 2024. Malaysia was least affected by the decline, experiencing a 32 per cent dip in roles, and remains a leading hub for software development skills worldwide.

 

Infrastructure roles also faced challenges, with demand dropping after a post-pandemic spike. Economic factors and budgetary pressures have contributed to a decline in demand for traditional support roles, as companies adjust to new norms and streamline costs.

“China experienced the largest decline in infrastructure talent within Asia, with demand shrinking 86 per cent from 2022 to 2024. Conversely, demand in Hong Kong appeared relatively stable, seeing no more than a 5 per cent reduction in infrastructure roles. Roles in Malaysia and Singapore were also impacted, with reductions of 46 per cent and 41 per cent respectively,” says Sue.

 

 

In 2024, Project Managers were the most in-demand role as organisations prepared for AI integration and upgraded outdated technology infrastructures. ERP/CRM roles saw steady growth, largely avoiding the peaks and troughs faced by other skills areas. The strategic allocation of labour, with project management in established regions and execution outsourced to other markets, underscores the importance of developing long-term partnerships to sustain talent pipelines.

 

“Despite a 4 per cent reduction in Projects and Change roles from 2022 to 2024, China saw demand spike by 33 per cent compared to 2023. In contrast, Hong Kong experienced an 8 per cent increase in roles from 2022 to 2024, but a significant 36 per cent decline compared to 2023. Japan and Malaysia both faced declining demand compared to 2023, with reductions of 29 per cent and 12 per cent respectively. Meanwhile, Singapore saw a notable 54 per cent increase in demand compared to 2023,” says Sue.

 

Demand for roles in Projects and Change, as well as Data and Advanced Analytics, is expected to continue throughout 2025 as organisations work towards their AI ambitions. With budgets under pressure, organisations are increasingly relying on data for strategic decision-making, driving demand for professionals who can interpret and refine machine-generated outputs. Technological advancements, including Gen AI, will reshape job volumes, but this shift will be gradual and complex, rather than an immediate replacement of jobs.

 

 

Insights from the 2025 Hays Asia Salary Guide reveal that while 52 per cent of working professionals in China use AI tools at work, only 31 per cent have received training to use such tools. Furthermore, 60 per cent of professionals do not use AI tools due to a lack of understanding, support or training, the highest percentage among locations surveyed followed by Hong Kong SAR (46 per cent), Malaysia (46 per cent) and Japan (43 per cent).

“94 per cent of professionals in China are willing to learn how to use AI tools at work. With 60 per cent of organisations facing critical skill gaps this year, leaders should consider implementing programs to upskill employees in these tools,” said Sue.

 

James Milligan, Hays, Global Head of Technology, Engineering and Contracting
"2025 marks the transition from isolated AI-enabled initiatives to comprehensive technology solutions that will reshape how work is done. This transformation will extend beyond 2025, with full implementation taking five to ten years for most businesses. Understanding the impact on hiring strategies and identifying key skills will be critical, with the quality, integration, and ROI of technology a direct result of the foundations laid in the next 12 months."

 

"Each new wave of technology, including Gen AI, brings predictions of job disruptions and new skill demands. While Gen AI is expected to continue to enhance productivity and add financial value, its benefits will vary across roles and sectors. Organisations must thoughtfully integrate human and machine intelligence to maximise effectiveness. Simply replacing roles with AI for immediate cost savings can harm long-term performance. Instead, organisations should focus on reskilling employees in 'at-risk' roles and consider internal redeployment to meet evolving needs.

 

"Organisations must adapt to the rapid creation and reduction of jobs driven by evolving technologies and AI automation. Defining specific skills needed at each stage of digital transformation is crucial, and a blend of high-skill contract workers and permanent employees can be more effective. Emphasising soft skills like communication, negotiation, self-awareness, and emotional intelligence is vital, especially in rapidly changing sectors.

 

A copy of the Future of Work report is available here.

 

 

Contact
Bill Wang
E: Bill.wang@hays.cn    

 

About Hays
Hays plc (the "Group") is the world’s leading specialist in workforce solutions and recruitment, such as RPO and MSP. The Group is the expert at recruiting qualified, professional, and skilled people worldwide, being the market leader in the UK, Germany, and Australia and one of the market leaders in Continental Europe, Latin America, and Asia. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As of 31 December 2024, the Group employed over 10,300 staff operating from 225 offices in 33 countries. For the year ended 30 June 2024:

 

•    the Group reported net fees of £1,113.6 million and operating profit of £105.1 million.
•    the Group placed around 57,700 candidates into permanent jobs and around 225,000 people into temporary roles.
•    13% of Group net fees were generated in Australia & New Zealand, 32% in Germany, 20% in United Kingdom & Ireland and 35% in Rest of World (RoW).
•    the temporary placement business represented 59% of net fees and the permanent placement business represented 41% of net fees.
•    Technology is the Group’s largest division, with 25% of net fees, while Accountancy & Finance (15%) and Engineering (11%), are the next largest.
•    Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, the Czech Republic, Denmark, France, Germany, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Romania, Singapore, Spain, Sweden, Switzerland, Thailand, UAE, the UK, and the USA.