Overall Score

4.3 in 2015 4.7
0 2.5 5 7.5 10

Key Finding

As economic growth slows down, higher participation rates and lower wage pressures have both contributed to the fall in the overall Index score. The increase in structural unemployment points to incipient pressures that for the moment remain under control.

BREAKDOWN OF SEVEN INDICATOR SCORES

Scores
0 2.5 5 7.5 10
Education
flexibility
1.2
Labour market
participation
1.9
Labour market
flexibility
8.1
Talent
mismatch
4.6
Overall wage
pressure
5.5
Wage pressure in
high-skill industries
3.7
Wage pressure in
high-skill occupations
5.0

COUNTRY OVERVIEW

View from the ground

As China’s labour market adjusts to the slower overall economic growth rate, employers are facing talent management challenges often specific to their individual industry sector. Recruitment and retention within traditional manufacturing and industrial sectors are driven by the need to increase productivity, with employers focused on upskilling their leadership and technical teams in a climate of tight cost control. In contrast, the ongoing skills shortage in the High Tech industrial, Internet and eCommerce, and Lifestyle Services sectors continues to fuel fierce competition for talent, and put upwards pressure on salaries. Employers are advised to have a strong industry-specific recruitment strategy in place, integrating their Employee Value Proposition (EVP) throughout the employee lifecycle.

Simon Lance, Managing Director, Hays China

Simon Lance, Managing Director, Hays China

Country Profile

The latest Chinese data suggests risks of a severe slowdown in Chinese GDP growth have abated, as better exports and steady infrastructure investment offset downward pressures from increasingly weak corporate investment.

Some forecasters (like the IMF) predict the Chinese economy will settle at about six per cent growth in 2017.

Risks to this forecast surface from rapidly rising credit growth, excess capacity in sectors such as coal mining and steel production, and the state of the financial sector.

Simon Lance, Managing Director, Hays China

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