Strength of China’s employment market continues to build

Key survey findings: (Source: Michael Page Employment Index report Q2, 2012)

• Confidence in the local economy, with 79% of employers predicting business conditions will improve or remain stable in Q2.
• China continues to lead the Asia region for headcount growth, with 56% of companies expecting to increase staff numbers.
• Majority of employers (84%) focused on organisational culture and will implement a range of strategies to improve their company’s culture.

03 April 2012: The strength of China’s employment market is set to continue into the second quarter of the year, with findings in the latest Michael Page Employment Index revealing a positive outlook for hiring intentions.

Among those employers surveyed for the Quarter 2 report, there is favourable sentiment towards both domestic business conditions and hiring additional staff. Some 79% of employers predict business conditions will either improve or remain stable in the coming months, while the majority of employers (56%) expect to boost headcount in their business – a 7% increase on the previous quarter’s findings.

“As confidence in China’s business conditions remains strong, the recruitment market continues to feed off this positive sentiment and we are seeing employers indicating the need for more staff over the coming months,” says Mr. Andy Bentote, Managing Director for Michael Page, Northern and Eastern China. “While growth is not at the same levels as one year earlier, China still dominates the Asia region in terms of an optimistic outlook for jobs growth and opportunities,” he adds.

Of those companies planning to hire more staff, most (40%) anticipate making increases in the range of 5% to 10% while a further 30% predict a more moderate increase of up to 5%. Further illustrating the ongoing growth opportunities for businesses in China, the bulk of new hires in quarter two are expected to be in front line, revenue-generating positions, with 74% of employers focusing hiring on these roles.

Talent Management remains a key business concern for Chinese companies, with 82% having a major or moderate focus on staff retention. Employers have also acknowledged the growing importance of a positive organisational culture.

“Employers in China are increasingly recognising the importance of having a strong organisational culture, and how this can assist with staff retention. The majority of employers surveyed, 84%, have indicated they will be focusing on improving their company’s culture in quarter two and implementing a combination of strategies to achieve this,” says Mr. Bentote.