Recruiting in China

Employers in China are decreasing their expected hiring, shows a recent report by the recruitment firm Hudson. They estimate an index, measured through interviews with employers, that tracks the expected hiring for the next quarter.

The figures for the third quarter of 2013 are reported as the lowest since the beginning of 2010.

Fewer jobs and more applicants

Bi Lin, joint general manager for Hudson in Shanghai explains the reasons he sees for such a reduction. In an interview with China Daily he says, “The government’s support of quality growth has resulted in a slower rate of growth, as many organizations are focusing on achieving internal efficiency and productivity gains in the first instance rather than adding headcount.” Of the 816 companies interviewed by Hudson, 13.2% said they would reduce their headcount in the next quarter. This is a 6.2% rise over the previous quarter.

The problem for job applicants is twofold. Along with the predictions from Hudson of declining recruitment, there are also a rising number of applicants for positions. This is blamed on several factors, including the closing of a number of export-focused companies amidst economic difficulties globally, and also an increase in the number of Chinese currently overseas returning to China due to the same economic difficulties.

Differences across the sectors

The hiring and job situation is quite mixed amongst the different sectors of the market. The Hudson report identifies stronger hiring intentions for highly qualified and specialized workers, in particular those in research and development, chemicals, healthcare, laboratory roles, and digital marketing.

The property and construction sector is seen as the industry with the most opportunity, with strong growth in hiring. This is due to the continued strength of commercial and retail property, with a strong domestic demand unaffected by overseas economic difficulties or tightening regulations for overseas capital in China.

Healthcare, too, has strong potential. 71.2% of respondents in this sector indicated increased hiring intentions for the next quarter. Bi explained that this is due to the upcoming plans of a number of global pharmaceutical companies currently establishing research and development centers in China increasing their demand for employees.