As discussed in our last blog, the Chinese job market is highly fragmented. In addition, youth unemployment is high, and this is impacting hiring. However, we want to emphasise that it is not all doom and gloom. This blog post will look at what’s happening in the Chinese job market and how it will affect hiring.
Industries once responsible for providing most graduate jobs have struggled due to efforts to control the economy. A prime example is the many tech companies, popular workplaces amongst young people, reducing staff due to ongoing regulatory issues. Another industry that has suffered from the current crackdown is the Private Tutoring sector. To relieve schoolchildren and their parents from pressure and cost, the government shut down the $120 billion industry. However, these companies were also massive employers of young adults and reflective of middle-class dreams. According to an article published by The Times, this trend repeats across many different industries. It is also heavily reflected throughout China’s property sector, which once accounted for a third of China’s economy.
Are these measurables accurate?
China’s statistics should be approached with scepticism, as many suspect the official figures may well understate youth unemployment.
Firstly, we want to clear up what we mean by unemployed. The statistics categorised the unemployed as those who searched for a job within the past three months and could begin work within two weeks. However, that means hundreds of thousands of people in quarantine, often including multiple-week stretches, have not been counted.
A secondary issue is that the statistics are suspected to exclude certain regions. In addition, the survey focuses on China’s urban areas and does not account for redundant migrant workers who have returned to their rural homes. Finally, the figures also fail to capture the growing number of young adults who have given up on finding a job altogether.
The Hiring Issue is Fuelling Youth Unemployment
The unemployment rate in China is causing problems for employers. First, there are more job seekers than there are available jobs. This disproportion means employers have to wade through many unqualified candidates to find the few qualified ones. Second, the competition for qualified candidates results in higher wages. As a result, employers are willing to pay more to attract and retain talented employees.
Fortunately, there are some things employers can do to find the best candidates despite the challenges posed by the high unemployment rate. When recruiting from a company based overseas, we cannot overstate the importance of bringing someone with industry and market knowledge. The China Desk manages the end-to-end hiring process through onboarding, with access to a large pool of potential candidates.
Further, we will take ownership of the screening process, ensuring that you only ever meet with candidates who meet your specific criteria. Recruitment agencies can also be a valuable resource for internal companies that are well acquainted with the Chinese market, many of which we work with closely.
Get in touch
For more information and an overview of the packages available, please visit https://www.kinyu.co.uk/china-desk/. You can also get in touch via info@kinyu.co.uk or give them a ring at +86 181 7315 8445.
