It's not nearly as nasty as in New York, but beware: Job cuts ARE happening in Hong Kong

Further signs are emerging of global banks axing jobs in Hong Kong, all be it not on the same scale as in the West. And it seems the market downturn is also making candidates a little less demanding.

According to Bloomberg data, redundancies announced by the world's 50 largest banks this year total almost 60,000 - including 30,000 at HSBC, 3,500 at UBS, and 2,000 at Credit Suisse.

The bulk of these will happen outside Asia, but that doesn't mean the region is immune. In Hong Kong banks are already trimming over and above their usual performance-related reductions, although only two to three people are typically laid off each time.

Goldman Sachs, UBS, Credit Suisse, Deutsche Bank and Barclays are among the firms to have let people go in Hong Kong, with middle and back offices most affected, according to three senior Hong Kong recruiters, all of whom asked to remain anonymous.

Another headhunter, Hubert Tam, managing partner, Sirius Partners, adds: "Banks don't usually proactively slash jobs at this time of year, but because the economy and market have not performed as well as expected, jobs in Hong Kong have not been spared."

And he isn't ruling out continued layoffs in 2011. "As it gets closer to the end of the year, we may see even more candidates being let go as firms switch focus to certain business areas in 2012."

Tam reckons structured-sales roles are particularly vulnerable because banks' balance sheets can't be leveraged as much as before. Matthew Hill, managing director Hong Kong, Ambition, adds: "I think areas which are non-fee generating will bear most of the brunt - these are typically the lower-level back-office jobs."

Feel the fear and ask for less money

These uncertain times mean job seekers are being less demanding. Hill says: "There has been a mindset change for some. I know of a candidate in an investment bank who currently earns US$180k, but who is asking for US$100k in his next role. Candidates have awareness that the markets are changing and are looking for organisations with the right plan/upside for the next two to three years. "

East still beats West

Recruiters, however, remain optimistic about Asia's longer-term employment market. "Margins have been quite good in Asia compared with the rest of the world, so I don't think firms are going rip out all the infrastructure they have spent the last few years building up. Asia was the first to bounce back after the GFC, so it's likely to be the region which will rebound quickest if there is a global recession," says Hill.

Another factor in Asia's favour is that talent is sometimes cheaper here. Candidates in support functions cost less than in Europe and the US, so firms are more likely to retain profitability with only modest cuts, says Hill.