Recruiting in China

Vocational schools emphasize skilled training to meet growing demand

China is gradually shifting its education focus from a pursuit of diplomas to vocational training, in a bid to meet the growing demand for skilled workers in the country's technical upgrade.

The supply and demand in China's labor market has been mismatched, which resulted in structural unemployment, said Rong Lanxiang, headmaster of Shandong Lanxiang Vocational School, one of China's largest training bases of skilled workers.

"The overexpansion of university enrollment generates millions of graduates who struggle to find a place in the government or public institutions. But, on the other hand, the shortage of skilled workers in China's manufacturing sector was more than 4 million at the moment," Rong said, explaining that high-skilled workers only account for 15 percent of the country's workforce.

Another reason is the stereotyped, stubborn image that workers are ranked at a lower class of the social hierarchy and fail to win enough esteem, he added.

Rong said the issue has drawn attention from the government and corresponding changes in policy have been made, as reflected by the change in students' subsidies.

In February, China decided that from 2014 it will do away with the publicly funded postgraduate education system that has been in place for several decades.

Meanwhile, the government has also been increasing fiscal support for vocational schools. Since 2012, the Shandong government has provided annual subsidies of up to 4,800 yuan ($773) for each of Rong's students, on top of the 1,500-yuan national allowance.

"The policy came 10 years late, otherwise we would not have seen such a large gap in the supply of skilled workers," Rong said.

His words were echoed by Xu Xiaoping, a senior technician from Shanghai Volkswagen Automotive Co, who said manufacturers are facing a severe shortage of skilled workers.

"Even if we offer a salary of 5,000 to 7,000 yuan per month, it's still hard to locate the right candidates," he said.

He attributed the malaise currently afflicting the industry to the absence of trained professionals as well as the lack of enterprise engagement.

To iron out the issue, Xu said Shanghai Volkswagen has signed several memorandums of understanding with local vocational schools to nurture technical practitioners.

As for the Lanxiang school, Rong said employers have to pay 1,000 to 3,000 yuan for each graduate they book. Even so, only companies with a noted brand and good track record are eligible to do so.

A student of the school who went on to become an excavator operator or motor mechanic could make as much as 10,000 yuan a month, an enviable salary level even for top university graduates.

Graduates from the excavator operating class have also been employed by State-owned enterprises and sent for overseas mining project in Russia and Mongolia, with even better pay.

Although Lanxiang has trained more than 300,000 skilled workers, the labor gap currently stands at 4 million people.

Therefore, Rong suggested that training bases for skilled workers should be established in each province, in order to equip the 250-million-strong migrant workforce with skills or proficiencies, so that they'll have a better chance to settle down in the cities.

Meanwhile, he said, skilled workers should have a similar social status with public servants and university graduates.

Apart from cash payments, he called for job certification to be granted for vocational school graduates so as to encourage more young people to become skilled workers.

"Nowadays kids aren't used to hard work, partly because being a worker doesn't sound decent enough," said Zhou Zhenbo, a technician at Shanghai Delixi Group Co Ltd who has a tenfold pay increase over the past nine years.

"I think it's still worth the effort and young people should learn to put their feet on the ground," he said.