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Hire in China

Introduction

China has the second-largest working-age population in the world after India. After being marred by the pandemic, the job market in China bounced back in the last quarter of 2020 and hiring in China has been on an upward trajectory since then. 

The Bloomberg China Labor Report states that more than 50% of employable talent in the nation is looking for new jobs in IT, business markets, teaching, entertainment, etc. However, The National Statistics Bureau states that the employment scenario still shows stains of the pandemic. More than 44% of the companies in China face a phenomenal talent gap due to the inconsistent availability of working-class people.


Overview of China

Population- 1.44 billion. 

GDP: 14.34 lakh crores USD (FY21)

Economic Overview

As per the reports of the national statistics bureau, the economy of China has grown by 0.6% in the first quarter of 2021 as compared to the last quarter of the year 2020. The expert analysts have given a growth forecast of 5.6%  between the 3rd and 4th quarters of the year 2021.

Market Size

The market size of China is enough to accommodate all of its working-age population with a sustainable job. The predicted growth of 5.6% is a good sign for the absorption of the Chinese population seeking employment. However, professional training with training institutes must take centre stage to address the talent gap caused by the pandemic. 

A brief glimpse of industries

  • The Chinese government has been actively expanding its trade routes across the globe through the Middle East, Asian and European routes. This has given the Chinese market a sizable exposure. 
  • The main industries where China has started to invest more are the big data sector, tourism, and aviation, satellite transmission, space missions, IT industry, medical device manufacturing, etc.
  • The government aims to create nine million jobs for the population currently seeking employment.
  • The government is also working towards boosting the manufacturing sector and collectively contributing to the GDP by almost 35%.
  • The average Internet speed in China is 113.5 mbps. The average download speed in China is 24.02 mbps per second and the upload speed is 30.56 mbps.
  • The government is encouraging companies and service sectors to introduce policies that support flexible employment terms.

Cost of living

The cost of living in a country depends on various factors such as which city the person lives in, the type of industry dominant in that area, state revenue, taxation policies, and much more. Location is the main factor that determines the cost of living. The following table gives an insight into the cost of living in China.

A Breakdown of the Average Cost of Living in China 

Category Area of Expense Estimated Monthly Cost (USD)
Rental Hostels, PGs, Shared flats, and single accommodation $200 ~ $700
Food and beverage Household groceries and House helps $100 ~ $150
Transport costs Bus train and metro $30 ~ $50
Utilities and miscellaneous water, electricity, gas, wi-fi, telephone $50 ~ $100


Cost of renting

The average cost of renting in China is $300-500 per month. But this may vary depending on your location and your lifestyle. The cost of living alone is higher than living in a shared living space.

Your cost of living in China depends on your location:

The cost of living varies significantly in different cities in China. There is a tier-wise bifurcation of cities. Tier 1 cities have a higher cost of living, hence higher salaries. Tier 2 and tier 3 cities have different statistics based on their respective economic status.

  • The cities categorized as Tier 1 are all the metropolitan cities for example Shanghai, Beijing, and Shenzhen; 
  • Some cities are known as New Tier 1 towns.  These are emerging capital cities that have a very high rate of growth. Hangzhou, Chengdu, and Wuhan are some examples of new Tier 1 towns; 
  • Interestingly, Tier 2 cities are the ones that are the capital cities of a province, or even almost all big cities with a decent economic growth level. Changchun, Xiamen, and Haikou are classic examples.
  • Lastly, the cities in the Tier 3 category are much smaller than the Tier 2 cities.
Tier of the city Salary in (USD) Cost of Living in (USD) Rent in (USD)
Cities classified as Tier 1 $2,200~ $3000 $1,500 ~$2,500 $500 ~ $600
Newer Tier 1 Cities $,1515~$2,223 $750 ~ $1,200 $280~ $425
Tier 2 $1,500~$1,840 $660 ~ $2,000 $252 ~ $426
Tier 3 $1,1032 ~ $1,515 $524 ~ $560 $151 ~ $352

The top sectors that are expected to hire in China in 2021

S.No Industrial Sector Growth Percentage in terms of hiring and revenue
1. Passenger Rail Transport 55.3%
2. Hotels 27%
3. Online Shopping 22.3%
4. Medical device Manufacturing 18.1%
5. Toll road operation 17.7%
6. Courier 17.6%
7. Satellite transmission services 15.3%
8. Software/Hardware & IT 25%
9. Movie production 15.2%
10. Logistics 29%

Top Skills in China

China has a dynamic job market. There are plenty of job opportunities at the entry-level for enterprising and ambitious freshers. Experienced and industry experts excel in senior-level positions. Different cities have different types of skills based on the dominant occupation in that city.

Major industries hiring the most in China include:

  • chemicals
  • food processing
  • consumer products
  • machine building
  • technology
  • mining
  • transport 
  • textiles

Top Skills City-wise Occupation-wise

Beijing and Shanghai have the most English speaking jobs, and most companies have their headquarters in these two cities. Shanghai is the main financial hub of China. These cities offer most opportunities in the field of: 

  • Management
  • Sales
  • Production
  • Back end consumer assistance
  • Advertising
  • Digital marketing

The other prominent cities are the coastal cities of Hong Kong, Guangzhou, Shenzhen, and Tianjin. These cities are home to the headquarters of many companies that offer jobs in:

  • Shipping and delivery
  • Marketing and production 
  • Loading and packaging of products
  • Sales
  • Foreign investment
  • Export business
  • Mining
  • Food processing

Wuhan is the talent hub of the nation. Many opportunities exist for professionals like judges, lawyers, doctors, bank managers, chief executive officers, chief financial officers, orthodontists, pilots, etc.

Wenzhou and Changzhou have a medium population and have less job saturation. These cities have all sorts of jobs. However, the majority of skills in these cities are academicians, banking professionals, clerks, hoteliers, and management professionals.

Ningbo and Shenyang on the other hand are tourism-specific cities. Here most jobs are available in the food business, hotel and tourism companies, and travel agencies.

Harbin and Qingdao have many agro-based industries. Hence companies that deal with food and beverage processing, packaging, labeling, chemical plants, heavy industries, and storage units exist in abundance.

Hiring Cost

The cost of hiring is an important factor to consider while employing people. It depends on various other factors such as the cost of living in the city, and overall expenditure that occurred in a city. When you go to hire someone in a particular city, several important things affect the cost of hiring such as:

  • onboarding costs
  • Training
  • The cost incurred in taking interviews, conducting screening process, and completion of the hiring
  • opportunity costs

Salary structure for various roles

The following table reflects the average annual salary drawn by employees of various sectors in CNY:

Working areas Average gross monthly salary by survey (in CNY)
Agro and Food Industry 4,772
Arts & Culture 5,375
Banking 7,663
Chemical Industry 6,299
Construction & Real Estate 6,792
Finance and Economics 6,958
Education, and R&D 572
Engineering 659
Journalism & Media 5,713
Marketing and Advertising 699
Technology and AI Development 890
Telecommunications 7,543
Textile, Apparel and Shoe industry 5,765
Tourism, Food and Hotel Business 4,745
Pharmaceutical Industry 7,288
Medicine and healthcare 5,554
Legal Department 7,831
IT Sector 9,587


Employment Laws in China

  • Most of the Chinese employment regulations pertain to individual labor relationships
  • Currently, the collective labor relationships don’t have an important role to play in the employment laws of China.
  • The legal framework has moved more towards flexible employment policies and employee-friendly codes.
  • The regulations that apply are very simple, however, the authorities have substantial power.
  • The Local legislation (state-wise) has a significant impact on the existing employment relationships.
  • The main laws governing employment relationships in China are:
    • the Labor Code;
    • the Union Law;
    • the Labor Contract Law;
    • the Mediation and Arbitration of Labor Disputes Act;
    • the Work Safety Law;
    • the Collective Contract Regulations;
    • the Social Security Law.
  • Apart from the above laws, certain local regulations also exist and are to be read and applied along with the central laws. Additionally, the judicial interpretations made by the Supreme Court also constitute the legal framework on employment.

How Can Skuad Help You In Hiring in China?

Hiring in China is a multi-faceted task requiring in-depth knowledge of the laws, trends, hiring costs, living costs city-wise, and more. Skuad comes onboard as a one-stop solution handling every minute aspect of recruitment. It gives you the freedom and time to focus on your project and expansion plans without any hiring stresses. Connect with Skuad Experts to know more. 


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