Hiring activity in Asia picked up in Q1 2015, with job advertising volumes up 22% compared with a year ago, according to the latest Robert Walters Asia Job Index.

Japan led the regional growth, as the shortage of professional talent continued to spur job advertising. South Korea also saw a lift in job advertising volumes as a result of improved business confidence. As competition for highly specialised professionals continued to intensify across the region, companies have increasingly started to focus on offering better remuneration packages, as well as talent development and retention.

The IT sector posted the largest growth in job advertisement volumes, up 54% compared with Q1 2014, due to the continued trend of establishing IT shared services functions and growth in online products.

Arthur Wang, Managing Director of Robert Walters China, commented: “China’s recruitment market started off positively in 2015 with a 16% annual growth in the number of job advertisements in Q1. With the Chinese government setting its GDP target at 7% this year, the jobs market will likely grow at a stable pace. As the government continues to steer the economy towards being consumption-led, we expect to see the creation of more high-paying jobs within the consumer and services sectors in order to encourage spending. There will also be a growing emphasis on developing the healthcare and environmental industries to support sustainable growth in society. This is reflected by the 19% year-on-year increase in jobs advertising from the medical services sector in the last quarter.”

Matthew Bennett, Managing Director of Greater China, added: “We observed a strong level of hiring activity in the first half of 2014 and recruitment activity in A1 2015 had remained relatively steady compared to the same time last year. Looking ahead, we expect to see an uplift in hiring activity in Q2 as bonuses are being paid out and the holiday season comes to an end. However, the market will remain cautious as the transition of the Chinese economy and uncertainties in the European markets continue.”

“This will affect the city’s manufacturing and trade industries as seen from the decrease in job advertising in the merchandising and operations functions in Q1. As companies continue to focus on managing costs and increasing profits, we will see more opportunities for accounting and finance professionals who can identify areas for cost-savings, as well as strong sales professionals who can help to grow revenue,” Mr Bennett added.

David Swan, Managing Director of Japan & Korea, commented: “The Japanese recruitment market continued to experience a shortage of professional talent. This is reflected by the sharp increase in job advertising volumes, which grew by 33% in the first quarter from a year ago, reinforcing the strong hiring activity we’ve seen throughout the quarter.”

“The growth could also be partly attributed to Japanese companies adding new headcount to their teams before their new budget year starts in April. Business confidence has remained strong as a result of the Japanese government’s economic policies. Companies are motivated to increase their capital investment and seek further business expansion. This has encouraged companies within the automotive and machinery sectors in particular to increase their headcounts, leading to a strong demand for engineers,” Mr Swan said.

Concerning Malaysia, Managing Director Sally Raj stated: “Malaysia has enjoyed constant growth in the last five years, with significant profess seen predominantly within the Shared Services and FMCG sectors. This has in turn created job opportunities for accounting, finance, and IT professionals. Existing firms have even expanded their Malaysian hubs from regional to global operations. The main challenges for businesses currently are largely external factors.”

“The drop in oil prices has affected a number of companies in the industry and caused some to downsize its operations. In addition, many companies are adopting a ‘wait-and-see’ approach with regards to the implementation of the Goods and Services Tax (GST) and to measure its impact along their supply chain and business operations. However, market sentiments in Malaysia remain positive and we are seeing employers being more committed to the long-term strategy of investing in talent,” she added.

Toby Fowlston, Managing Director of Southeast Asia, said: “Recruitment in Singapore is largely driven by competition in the candidate-short market, hence key challenges generally lie in attracting the best talent for the right positions. To address this, the employment market has evolved to focus heavily on talent development and retention. Companies prioritise Singaporean professionals when hiring and that emphasis will continue throughout the year. Only when all channels of recruiting domestic talent have been exhausted do hiring managers expand their search to foreign candidates. Despite offshoring within the foreign investment banking industry in the last six months, financial services still remain a major part of the Singapore economy and we look forward to a more buoyant sector in the year ahead.”

Duncan Harrison, Country Manager for South Korea, said: “These was evidently increased confidence among candidates and companies, with the number of job advertisements showing double-digit growth in the first quarter. This was largely due to more foreign companies entering the South Korean market, thanks to the relaxation of regulations, an increase in the number of free trade agreements signed by Korea, and a change in the tax system.”

“The increase in foreign investment also boosted the demand for bilingual specialists, with finance and office managers being in particularly high demand. These professionals were highly sought-after particularly within the online and gaming industries; as well as international law firms, many of which have opened new offices in Seoul in 2015. In the retail sector, an influx of Chinese tourists has motivated luxury brand operators to hire actively store managers to help set up and manage their new retail outlets,” he added.