A new annual survey conducted by Baptist University has revealed a notable shift in the Hong Kong labor market, showing that the starting salary advantage for bachelor’s degree holders over sub-degree graduates has decreased. The pay disparity narrowed by HK$500, dropping from a HK$3,000 difference last year to HK$2,500 this year, representing a 17% reduction.

Human resources professionals and industry analysts point to the rapid adoption of artificial intelligence as a primary driver behind these changing compensation trends. As AI tools become more prevalent in entry-level roles, the traditional premium placed on a four-year university degree is being challenged. The automation of routine tasks—often performed by recent graduates—may be leveling the playing field between different levels of academic qualification, as employers prioritize technical proficiency and AI-readiness over traditional degree status.

While the survey highlights the narrowing salary gap, it also reflects broader concerns among the youth workforce regarding job security and the long-term value of higher education in an AI-driven economy. The data suggests that the labor market is currently undergoing a structural adjustment, where the specific skills required to operate new technologies are becoming as valuable as the credentials traditionally required for entry-level positions. As companies continue to integrate these technologies, the traditional hierarchy of starting pay based solely on degree level may continue to evolve, potentially forcing universities to re-evaluate their curricula to ensure graduates remain competitive against those with sub-degree technical training.