How would you describe the current state of the Chinese job market?

We are seeing a calibration in the job market in China, where rapid digitalisation and business globalisation have helped bring in international talent and boosted growth. However, the COVID pandemic has shifted the outlook, as businesses navigate a much more sluggish economic and complex landscape.

The evolving economy and business landscapes has led job seekers to adopt a more cautious approach in their job searches. This caution is largely due to the widening skills gaps exacerbated by rapid technological advancements.

While average, organic salary increment remains stable at 5% with much more reasonable expectations on job titles and job responsibilities, it varies largely between industries and job types. However, the rapid developments and high employer expectations have left talent feeling that they are behind. The skills gap has widened as the workforce have largely not kept pace with technology developments.

At the same time, workers are pursuing jobs in non-traditional fields like biotechnology, fintech, and AI, leaving traditional industries like manufacturing and supply chain grappling with severe talent scarcity. The Ministry of Education also reported that around 70% of Chinese businesses are currently contending with some kind of labour shortage.

What are the key factors driving job seekers’ decisions in China today—salary, career growth, company reputation, or work-life balance?

While salary and work-life balance used to be at the top of mind, Chinese workers are aware of the market conditions and are cautiously optimistic about salary increases.

Most of the workers in China are expecting an organic salary increment of less than 5% in 2025, with the exception of in-demand talent equipped with AI skills who can still command a high salary.

with exception on outliers such as talents with AI skills for example which can still command a high increase. Generally speaking the salary increase is flat and people are looking for a financially strong company and stability across the board.

In our 2025 Workmonitor that was released at the World Economic Forum in January this year, we found that Chinese talent prioritises healthcare benefits and job security. Chinese workers are looking for financially strong companies to work for, where they can have access to corporate healthcare insurance schemes as well as a sense of stability to finance their lives.

The youth unemployment rate reached up to 21,3% for Chinese citizens aged 16- 24 in June 2023. What do you see as the main reasons behind this?

Youth unemployment presents a complex yet critical challenge in China, requiring a multi-faceted approach to ensure that young people can secure meaningful employment that aligns with their skills and aspirations. As companies face talent shortages, it is essential to create pathways for youths to develop their careers and become specialists in their chosen fields.

However, there is a mismatch between the supply and expectations of graduates and employers. The rapid growth in emerging sectors has led to a gap in traditional industries such as manufacturing and supply chain management, where job openings exist but often lack interested candidates.

Many young people are drawn to higher-paying and urban white-collar jobs, where there is a limited number of. There is also a gap between what the new generation of talent seeks—such as high flexibility and engaging job content—and what employers typically offer, often resulting in a mismatch.

To address this, it is crucial to enhance educational accessibility by increasing enrollment opportunities. Additionally, school curriculum should emphasise critical thinking, digital literacy, and problem-solving skills to equip future generations with the competencies needed to thrive in an increasingly digital economy.

What are the broader economic and social impacts of high youth unemployment?

Youth unemployment contributes to lower economic growth due to reduced potential productivity and economic output. Without employment, young people will also have lesser disposable income, which in turn affects domestic consumption and economic growth.

Besides the economic impacts of high youth unemployment, prolonged unemployment can lead to psychological issues such as loss of confidence and low self-esteem among the youths. A delayed career start can also lead to lower lifetime earnings and fewer career advancement opportunities. Without a good career outlook, they may also increase dependency on their family members and strain relationships and resources in the long run. Continuous unemployment could also lead to a brain drain, as talented individuals become more motivated to pursue educational and job opportunities outside of China.

Recognising the challenges, the government is working with educational institutions and companies to take proactive steps so that young people can have opportunities to launch their careers successfully domestically.

What are the biggest challenges companies face when hiring in China? How does Randstad address them?

Navigating the employment market in China is a crucial responsibility to Randstad. Even though everyone wants a job that pays well, the opportunity to work in an environment that fosters growth and satisfaction is equally important to workers. The latest Workmonitor survey highlights that 96% of respondents in China want their workplace to feel like a community, and 94% said that they perform better when they feel connected to their colleagues.

Our recruitment approach involves specialised consultants who focus on specific industries or sectors. This deep specialisation allows them to build targeted networks of clients and talent, leading to more effective recruitment outcomes. Although developing this expertise takes time and care, the results are well worth the investment, as our consultants gain a deep understanding of both client and talent needs.

We partner with companies to identify what they can offer to attract top talent, including training and development, employee benefits, and career advancement opportunities. Through market research and talent surveys, we also provide companies insights into what other companies offer and the latest talent expectations.

This enables our clients to benchmark themselves and strengthen their employer brand to attract more quality talent.

Besides hard data, we also work towards finding candidates with the right soft skills for a good cultural fit. This is rooted in our true-fit methodology, where we strive to match on three dimensions — job, boss and company fit — to ensure not just successful talent recruitment, but also employee retention.

Additionally, we advise employers on the availability and quality of the talent pool and collaborate with them to create strategies to expand their recruitment efforts to non-traditional sources, such as from adjacent industries or referral programmes. We also emphasise the importance of focusing on skills that can be developed rather than those already acquired, which creates room for growth and professional development for the individual.

We then communicate these opportunities and experiences to job applicants, widening their options and enabling them to make a better assessment of their career choices. Our specialised consultants also help talent identify skills gaps and recommend avenues for upskilling to enhance their marketability to employers.

What should international companies know about compliance and regulatory challenges when hiring in China?

As with any other markets, laws and regulations are constantly updated to reflect changes in the business environment. We believe that the largest challenge that companies face lies in ensuring that employment contracts and employee handbooks are not just updated regularly, but are also as detailed as possible to ensure clarity from the outset.

While onboarding is generally straightforward, with probation and contract durations clearly outlined in the contract, more complex challenges tend to emerge post-probation. It is hence important to clearly outline performance expectations from the start to ensure employees are clear about what they need to deliver and achieve in their role.

Additionally, navigating the compliance and regulatory issues associated with contract renewals or terminations requires careful attention to detail.

Having HR and legal experts can be very beneficial in these situations, allowing companies to proactively protect themselves. Furthermore, the growing trend towards outsourcing employment services offers another solution, with agencies like Randstad capable of managing these complexities on behalf of companies.

How is Randstad leveraging AI, automation, and big data in recruitment?

As a global recruitment firm with a strong presence in China, we actively invest and explore AI technologies to enhance our services and solutions. Our investments in AI solutions aim to improve accuracy and efficiency in engaging our customers and talent. We use generative AI to streamline communication, such as drafting emails and standardising deliverables, while integrating automation to accelerate our operations.

As AI continues to rapidly evolve, we are aware of the changing legal landscape surrounding information security and data protection. In response, we have invested in strengthening our regulatory and compliance capabilities to ensure ongoing adherence to relevant laws and regulations governing AI use.

All these investments and efforts enable our consultants to focus on building deeper relationships with job seekers and employers. By having a deeper understanding of a company's business strategies and impact on hiring needs, we can better identify and provide the talent that they need for the present and in the future.

What industries or skills will be in the highest demand in China in the coming years?

As one of the world's fastest-growing economies, China continues to attract companies and talent looking to expand both domestically and internationally. Innovation and digital transformation are also increasing the demand for skilled talent to speed up the process from ideation to commercialisation. Simultaneously, we are witnessing an increase in Chinese multinational corporations (MNCs) expanding overseas, which is driving up demand for candidates with international experience or those who have worked in global and regional roles within locally-based firms.

In particular, recruitment demand for technology-intensive and service-oriented industries is growing exponentially, with intelligent manufacturing, healthcare and other industries becoming talent-absorbing highlands.

Consequently, hiring across various industries in China is expected to continue, albeit with evolving expectations.

The demand for talent with excellent digital literacy, critical thinking, and problem solving skills are highly favoured. As automation becomes more commonplace, it is important for workers to understand how to optimise AI effectively, beyond writing emails. This involves anticipating market and consumer changes to stay ahead of competitors.

The impact of digital transformation extends beyond tech roles as we see it. Talent even in the most traditional fields like manufacturing and construction also need to understand how digital transformation will change their skills requirements, like 3D modelling and doing site assessments using drones. Functional jobs like Accounting and Finance, Sales, and Marketing will also need to know how to use digital tools to crunch big data and provide better insights and trends for stakeholders with the goal of increasing productivity and profitability.

Are there any misconceptions about recruiting in China that you often encounter?

There are approximately 11 million graduates every year in China, which is a rich source of talent pool for growing companies to source from. However, a mindset change is necessary to tap into this pool effectively.

Youths are avoiding traditional and industrial sectors despite the availability of job opportunities. However, these industries are undergoing digital transformation as well, with many tasks now being performed remotely on a computer rather than on-site, creating higher-value jobs in the meantime. This shift presents an opportunity to rebrand these sectors as more appealing to the younger and more digitally-savvy job seekers.

At the same time, companies need to revise their compensation structure to reflect the enhanced skills required for the roles. Digitally adept talent, who can troubleshoot and produce outcomes more efficiently should be remunerated accordingly. Many companies have since transitioned to performance-based salary and bonus structures, which they should communicate to ensure a steady pipeline of skilled candidates.

How do you see the Job Market evolving over the next 3-5 years?

Nearly half of the employers we surveyed expressed optimism about engaging talented individuals into their workforce in 2025. However, amid cost pressures, companies are optimising efficiency and productivity, leading to more cautious hiring strategies.

This does not mean that companies are unwilling to invest in top talent; rather, they have higher standards for new hires, which will make hiring even more challenging.

AI developments are quickly transforming job roles and tasks. The World Economic Forum’s Future of Jobs 2025 report revealed that employers in Greater China expect 43% of tasks to be completely digitised and automated by 2030, surpassing the global estimate of 34%. Technology disruptions will be central to workforce planning, with 76% of companies aiming to enhance their workforce using new technologies.

According to the data, 59% of employers in Greater China are planning or have already begun transitioning employees from roles that AI will cause to decline to other roles within the company, 12% higher than the global average.

To address skills and talent scarcity challenges, it is critical for companies to explore alternative and flexible hiring practices, like referral programmes, expanding their talent pool to adjacent industries, and skills-based hiring. Working with specialised recruitment consultants with targeted recruitment solutions can also bring companies closer to their desired talent, as they have an advocate who is helping them not just source talent, but also improve the perception of their employer brand.

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