Unemployment in China is currently estimated at 9.4% (China Daily March 5, 2010).  Since the global recession in 2008, the nature of employment in China has changed.  There are fewer trading jobs with the rest of the world.  Instead employers are seeking higher skilled graduates with commercial acumen.  6.11 million students graduated from Chinese colleges in 2009.  Officially 87% received jobs but this percentage may be optimistic. Unemployment for graduates is high.  Expectations of a decent lifestyle by younger people means that they will not accept the menial jobs undertaken by their parents.   Unemployment is an issue all over China, but the issue is particularly acute in the cities which formally depended on manufacturing for export.

Takeaway

• Many graduates will work for your company for free in the current market to gain experience but if you pay them reasonably and offer training they are more likely to be loyal to your brand when there is an upturn in the economy.
• The average starting salary is 3,000 RMB per month in Beijing. The Chinese government does not welcome foreign companies who treat the staff unreasonably so decent working conditions can win you market share in the long term.
• The bilingual labour market is mobile and motivated by salary as well as good working conditions. The bicultural Chinese elite employed by foreign companies are a close friendship network with university ties. Their opinion will underpin the strength of your brand in China and determine your ability to recruit the best.