2017-2018劳动力市场和薪资调查报告（英文）_37页-2mb

Labor Market & Salary Report Summary

Core Content

This report provides an overview of the labor market and wage developments in China in 2017, with a focus on the economic environment, employment trends, and wage growth across different sectors and regions. It also includes insights into the expectations of German companies operating in China regarding wage changes and challenges related to human resources.

Main Points

Economic Environment

• China's GDP grew at 6.9% in the first half of 2017, exceeding the official annual growth target of 6.5%.
• The services sector dominates the economy, contributing 54.1% of GDP, with manufacturing/mining remaining the largest single industry contributor at 34.4%.
• Economic growth is still heavily reliant on capital investment, raising concerns over high debt levels (2.77 times GDP) and financial risks.
• Consumer-driven growth is a long-term goal, but the transition remains slow.

Labor Market

• The urbanization rate reached 56.8% in 2016, aligning with the non-mandatory target of 60% by 2020.
• 6.0% of Chinese companies expected to increase headcount in 2017, with 9.0% of service companies showing stronger hiring intentions.
• No new retirement age regulations were introduced in 2017, and hukou reforms remained limited, affecting migratory flows.
• Migrant workers numbered 281.1 million in 2016, with a slight increase of 1.5%. Most migrations were within home provinces, and migratory growth outside provinces stagnated.
• 52.9% of migrant workers are employed in the secondary sector, but this share is decreasing as the economy shifts towards service-oriented employment.

National Wage Developments

• Wages in China grew by 8.9% in 2016, below the double-digit growth seen in 2015.
• Per capita disposable income grew at a 6.3% rate, slower than wage growth.
• Regional governments were hesitant to introduce new minimum wage guidelines to maintain competitiveness.
• Gini coefficient increased slightly from 0.462 in 2015 to 0.465 in 2016, showing growing income inequality.

Key Information

Wage Growth at German Companies

• German Chamber companies in China expect 5.90% average wage increases in 2018, continuing a downward trend since 2012.
• Beijing and Taicang/Kunshan are the only regions with wage growth above last year’s.
• Kunshan is expected to see a 6.43% wage increase, while Taicang has a more moderate increase at 6.07%.
• All roles, including production workers, junior, mid-level, and senior professionals, are expected to see lower wage increases than in 2017.

Productivity and HR Environment

• 64.0% of surveyed German companies believe productivity gains are in line with wage increases.
• 58.2% expect future productivity increases to match wage growth.
• Recruitment, labor costs, and retention of skilled professionals are the top HR challenges.
• Variable compensation typically includes supplementary medical insurance, annual medical check-ups, and cash benefits such as sales commission, meal and transportation allowances, and supplementary housing funds.

Labor Market Trends

• Job vacancy-to-application ratio decreased by 20% in 2017Q2, indicating a tighter labor market.
• Tier-1 cities such as Beijing, Shanghai, Shenzhen, and Guangzhou remain the top locations for both job vacancies and job applications.
• Top sectors for job vacancies in 2017Q2 included sales professionals, software development, and civil engineering, while job applications were most common in internet/e-commerce, real estate, and education/training.
• Urban job creation is critical for absorbing the growing number of college graduates, estimated at 7.95 million by the end of 2017.

Conclusion

The Chinese labor market in 2017 showed strong economic growth, with the services sector leading the way. However, wage growth remained moderate, and regulatory hesitancy continued due to concerns over economic competitiveness. German companies in China expect slower wage increases in 2018, with regional variations. Labor market challenges include retention of skilled professionals, rising labor costs, and the complexity of hukou reforms. Urbanization and ageing population remain key factors influencing wage and employment trends.

Notes

• The report references several sources, including the National Bureau of Statistics (NBS), Caixin / Markit PMI, and Zhaopin.com for job market data.
• Wage growth estimates are based on past GDP, inflation, and salary growth data.
• The Gini coefficient indicates moderate income inequality, which is lower than in the period 2012–2014.