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Higher pay and stronger yuan slow hiring

By Shi Jing (China Daily)

08:32, December 26, 2012

The manufacturing industry's demand for new employees shrunk by more than 20 percent year-on-year in the first three quarters of this year, according to a recent survey released by the Seebon Human Resources Research Institute.

Among industries, shipping showed the greatest hiring demand, as the need for more employees in transportation, warehousing and postal services increased steadily in the first nine months of 2012, the report said.

Contributing to that result has been the success of e-commerce and the ever-tenser competition among online shopping malls. Industrial restructuring has also led to the disparities in hiring demand, said analysts at the Seebon Human Resources Research Institute.

The survey also said the reduction in job opportunities has resulted in part from the international market's declining interest in products manufactured in China, and the greater number of robots now performing jobs formerly done by people.

It predicted that rising labor costs, the incessant appreciation of the yuan and shrinking overseas demand will force small and medium-sized manufacturers, which once were the source of many job opportunities, to exit the market.

The survey also found that the number of people hired in the first three quarters of the year was up by 5 percent year-on-year. The demand for employees was the strongest in Beijing, Changsha, Kunming, Shenyang and Tianjin during that period.


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