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China – The right talent is in short supply

30 July 2014

The Chinese labour market continues to be affected by skill gaps at manager level, with nearly a quarter of employers in China experiencing talent shortages, according to international recruitment firm ManpowerGroup, reports China Daily.

Zhang Jinrong, Managing Director of ManpowerGroup China, commented: "Labour for production lines is in short supply, and there is an undersupply of the right talent in all industries on the Chinese mainland. Meanwhile, it's still difficult for inexperienced and unskilled workers to find jobs. The pressure to find the right skills in the right place at the right time will increase."

He added that economic, demographic, technological, and social forces will continue to evolve, so companies must have a flexible workforce. Talent shortages and skills gaps have varied effects on companies: lower competitiveness, reduced innovation and creativity, and less ability to serve clients.

According to the survey, 67% of employers in China reporting a talent shortage said it is having a medium- to high-level impact on their ability to meet their clients' needs. Only 10% said it had made no difference.

The labour market is likely to remain tight because of skills mismatches, an aging population, and a slowing economy in the country. At the same time, fresh graduates and middle-level managers still face shrinking job prospects.

Employers face an acute shortage of senior managers who speak both English and Chinese, are willing to relocate, and have familiarity with local Chinese business practices, Mr Zhang concluded.