China says already reached 2009 new job target

BEIJING, Dec 12 (Reuters) – In the first 10 months of the year China already exceeded the number of new jobs it aimed to create in 2009, state media said on Saturday, in another sign the country is emerging from the global economic crisis.

China created 9.4 million jobs in urban areas in the first 10 months, exceeding the government’s target of 9 million new jobs for the year, the official Xinhua news agency said, citing the Ministry of Human Resources and Social Security.

It added that about 4.4 million laid-off workers found new work in the January-October period, some 88 percent of the full-year goal of 5 million.

Officials had estimated that more than 20 million migrant workers lost jobs when the global financial crisis hit the Chinese economy, making job creation a priority for the government in its stimulus spending.

On Tuesday, the ministry estimated that China’s stimulus spending was on track to create at least 24 million jobs, offering its rosiest employment outlook since the financial crisis struck last year.

A recovery in employment is an essential precondition for Beijing to wind down its ultra-loose pro-growth policies adopted when the global financial turmoil devastated Chinese exports, leading factories to cut millions of jobs. (Reporting by Ben Blanchard; Editing by Bill Tarrant)

Nokia Plans New Round of Job Cuts

Nokia has announced more job cuts, and they’re unlikely to be the last. On March 17, the company said it is eliminating 1,700 jobs, including about 700 in Finland. The announcement comes a month after Nokia said it was closing a research and development center in Finland, while imposing temporary layoffs at a Finnish handset factory.

But more cuts will be needed for Nokia to meet its goal of saving $900 million, says analyst Jari Honko at eQ Bank in Helsinki. He estimates the measures disclosed so far will save about $390 million. So Nokia isn’t even halfway there.

Compared to what’s going on in some other industries, the scale of the latest job cuts is modest—though that is certainly no consolation to the Nokia employees affected. The 1,700 jobs, including about 700 in Finland, represent only about 1% of Nokia’s total workforce. It’s also worth remembering that Nokia increased its headcount by 16,000 people in 2008, so the most recent round of cuts represents less than two months of recent hiring.

Most Nokia watchers still believe that the company’s scale and history of innovation will enable it to emerge from the downturn stronger than competitors such as Motorola. But 2009 will be a perilous year for Nokia. The company lost market share in smartphones to Apple and Research In Motion in the fourth quarter (though Nokia may have gained some share back after rolling out its touch-screen 5800 XpressMusic handset in recent months). Growth in emerging markets has stalled. Nokia Siemens Networks, the company’s telco equipment unit, faces a strong challenge from China’s Huawei.

Nokia investors can only hope that the company will show the same pluck and creativity that has rescued it from big setbacks in the past.

HR: Top brass may get no pay hikes

Senior executives at nearly a quarter of Chinese companies would see no increase in their compensation packages this year, a survey by human resources consulting firm, Mercer, has found.

In all, 59 companies in China were included in the survey, of which 76 percent were listed companies and 39 percent, multinationals.

Around 34 percent of the surveyed companies said executive bonuses for 2008 would decrease. The average bonus level in Asia was 40 percent for 2008.

The global financial crisis has pushed companies to review executive compensation mechanisms. This is being done to tighten the relationship between executive pay and company strategy.

Around 49 percent of companies in China may adjust their performance evaluation standards in the next 12 months. Nearly 33 percent said they would adjust long-term evaluation standards, the survey revealed.

About 71 percent of the companies surveyed said they had a long-term incentive plan designed to retain talent. Due to the sluggish market, around 14 percent of the companies said the value of their long-term incentive plan (that will be met this year) would be lowered.

Mercer conducted similar surveys in other Asian nations, including India, South Korea, Japan and Singapore.

“In Asia, one-third of the companies surveyed said their senior executives’ salaries wouldn’t increase in 2009. The proportion in China is a little smaller than the average, indicating that the country is less impacted by the financial crisis,” said Zheng Wei, managing director for the Asia executive remuneration business at Mercer.

“Considering the deferred impact on China’s market, we expect more companies in China to take similar measures to limit senior executives’ pay this year,” Zheng added.

Ma Mingzhe, the chairman of Ping An Insurance (Group) Co, received the highest pay package for 2007 in the financial industry, at 66 million yuan. This was a nearly four-fold jump from his 2006 salary and was widely criticized.

About two thirds of Ma’s salary in 2007 came from the long-term incentive plan. “Because of the financial crisis, companies should pay much more attention to the validity and rationality of the salary mechanism and make it palatable to staff and public supervisors,” said Zheng.

Beijing offers incentive for hiring laid-off workers

BEIJING, Nov 23 (Reuters) – The Beijing city government has offered a subsidy to firms willing to give a job to laid-off workers, Chinese media said on Sunday, in the latest instance of local governments trying to combat rising risks of unemployment.

Companies willing to employ the unemployed could get up to 10,000 yuan a year per worker for the next three to five years, according to a report by the China News Service, citing the capital’s labour bureau.

Faced with the prospect of declining orders for the export sector, China’s central government has announced a 4 trillion yuan stimulus package which has been matched by 10 trillion yuan in projects announced by several provinces.

Local governments, which must fight to preserve jobs or run the risk of potentially destabilizing unemployed workers, have announced a series of ad hoc policies.

Hubei Province, in central China, earlier this month ordered state-owned companies to reduce salaries before cutting staff, the Xinhua news agency reported on Nov. 18. Large and medium-sized state-owned companies would need to seek government approval for lay-offs involving at least 50 people, it said.

In southern China, workers at some shuttered factories have had their unpaid back wages guaranteed by local governments, often in direct response to protests.

The export hub of Dongguan, in Southern China, in October set up a 1 billion yuan rescue fund for small and medium-sized businesses hurt by the global crisis.

PwC to hire in China, invests for long term

SHANGHAI (Reuters) – Global accounting firm PricewaterhouseCoopers PWC.UL plans to hire about 2,000 graduates in China in 2009, part of its long-term plan to expand in the country despite the global credit crunch, its top China head said on Monday.

PricewaterhouseCoopers, one of the world’s “Big Four” auditing firms, also plans to retain this pace of hiring for the next three to five years and will open new offices in the vast country “very soon” to support its rapid business growth, said Frank Lyn, Beijing-based China Markets Leader of PwC.

Lyn also noted that Chinese companies with ambitions to expand in the West through mergers and acquisitions could wait another six to nine months when deals are expected to be cheaper.

“The current economic crisis is something that everyone is very, very concerned about,” Lyn told Reuters in an interview in Shanghai, China’s financial hub.

“But if you take a longer-term view and the fact that we’re here to stay, we are not just hiring for now but ready to train our people for the next five to 10 years,” he said.

On average, it takes three to five years to groom a graduate to the level of a senior associate in PwC, Lyn added.

Last year, PwC hired 1,800 graduates and 800 experienced executives in China, Lyn said, adding it would be difficult to forecast how many experienced staff would be hired next year because the market environment will be different.

PwC has around 11,000 employees in China, Hong Kong and Macau where the firm operates a total of 13 offices.

Globally, PwC runs offices in 153 countries with more than 155,000 staff.

In China, PwC’s major rivals include Ernst & Young ERNY.UL, Deloitte & Touche DLTE.UL and KPMG KPMG.UL, while it is also facing growing challenges from smaller local firms as China’s Ministry of Finance is keen to strengthen the country’s own accounting industry.

LET VALUATIONS SETTLE

PwC became the official auditor for the listing of Bank of China (601988.SS: Quote, Profile, Research, Stock Buzz) (3988.HK: Quote, Profile, Research, Stock Buzz) in 2006, China’s top foreign exchange lender, which marked one of the world’s biggest initial public offering of shares that year.

Besides Bank of China, many Chinese clients of PwC are big state-owned enterprises such as PetroChina Co Ltd (601857.SS: Quote, Profile, Research, Stock Buzz) and China United Telecommunications Co Ltd (600050.SS: Quote, Profile, Research, Stock Buzz).

Big Asian firms, especially from China and Japan, are widely expected by Wall Street to make investments in the near future in the United States, where companies such as General Electric Co (GE.N: Quote, Profile, Research, Stock Buzz) or 3Com (COMS.O: Quote, Profile, Research, Stock Buzz) are keen to lure foreign capital to support growth amid the credit crunch.

Chinese companies “should not stop doing so but should really pause and let the valuations settle,” said Lyn, referring to firms with ambition to expand abroad.

“We still believe we have to go out there and do the outbound investment for a variety of reasons — buying technology, expertise, market share and so on,” he said.

“You’ll see in six to nine months, the activities will pick up and that’s my personal view purely from the value perspective,” he added.

China Online Job Hunters Totaled 118.726mn

BEIJING, Nov 07, 2008 China’s online recruiting websites lured 118.726 million individual members and 7.65 million company members as of Q3 2008, respectively leaping 70% and 34% from a year ago, according to a recent report by technology, media and telecom (TMT) market researcher Analysys International.
The top three recruiting websites, 51job, Inc. (Nasdaq: JOBS), ChinaHR.com Corporation, and Zhaopin.com respectively had 37.10 million, 23.15 million, and 14.90 million registered job hunters, as well as 1.01 million, 1.038 million, and 420,000 company members.

Efficient browsing time of Chinese online recruiting websites increased to 16.22 million hours in September from 14.11 million in August, representing an increase of 15%. And the number is forecast to grow further in October, according to an earlier report.

Monthly coverage index increased 4.1% from the comparable period one year ago. The top six recruiting websites all saw their efficient browsing hours climb during the period. Yingjiesheng.com, a recruiting website especially for new graduates, witnessed its efficient browsing hours rise drastically by 273.7%.

Importing the China work ethic

A group of talented graduates flew in from Beijing this month, to take part in a flagship work experience scheme. This joint UK-China Government initiative gives top Chinese graduates the opportunity to learn about UK culture and working life.

The scheme, which was announced by Prime Minister Gordon Brown during a visit to China in 2004, was set up to strengthen education and business links between China and the UK. Over 160 graduates have since taken up internships around the UK.

Thirty-one of the newest interns were welcomed at a reception organised by GTI Recruiting Solutions, at the Barbican in London. The graduates were fresh from spending two weeks at Regents College on a special induction to working life in the UK.

Employers and current interns were on hand to offer advice at the reception event. Philip Morgan from the Department for Innovation, Universities and Skills congratulated the graduates and advised them to, “work hard and make the most of their internship, making sure they visited as much of the country as possible during their stay.”

The candidates went through an intense selection process to be awarded a place on the programme, and are out to impress. For most, it is their first opportunity to experience life outside China and to gain work experience. They are very enthusiastic about their placements and the experiences they will have in the UK.

Intern Nan Zhang, explained why the programme means so much to her: “One of my friends once told me that ‘Life is a journey. Enjoy the ride’. For me, the reception event formally brought me into the field of work in the UK. This is a brand new journey for me to enjoy and an exciting adventure for me to attempt.’

A host of UK businesses are taking part, offering paid internships in a range of job functions, from marketing and HR, through to engineering, finance and project management. Employers are impressed with their interns, and their businesses are gaining much from the initiative. Paula Quinton-Jones, Graduate Resourcing & Development Manager for Europe at Standard Chartered Bank, who has taken on four interns, says “We’re delighted with the calibre of our interns – they are already making a fantastic contribution to our business”.

This is echoed by the recruitment team at Swiss Re who are set to expand in China, “We have launched an Asia Development Programme and a global graduate programme that includes China – so the UK-China Graduate Work Experience Programme is an ideal way to raise our profile among graduates in China.”

Employers offering the latest internships are Antonov, Associated Newspapers, British Sugar, Diageo, Euromoney, Halcrow, KL Communications, Lawson Dodd, Mazars, Norton Rose, Pinsent Mason, PwC, Rolls–Royce, Standard Chartered and Unilever.

The recruitment process is managed by GTI Recruiting Solutions, on behalf of the UK Government. As well as ensuring employers are matched with the graduates with the right skills and experience, GTI Recruiting Solutions takes care of all the administration required to bring the interns to the UK and provide pastoral care during their time here.

“New employers from all sectors are always welcome to the programme. If you need English-speaking talent with Chinese language skills, a strong education and a powerful will to succeed then let us know. We deal with all visa issues to make life easy for supporting employers and offer pastoral care for the interns outside the work place,” says GTI Recruiting Solutions Director Paul Clark, “Our aim here is to ensure the employers have the opportunity to offer work experience to graduate talent they are unlikely to reach. We have been hugely impressed by the hunger of these graduates and the determination to succeed.”

It is time to think hard about jobs

Three years ago, 3.38 million teenagers went off to college, hoping that higher education would lead to a bright future.

These days, many of those students are cutting class to attend jobs fairs, which began Sunday in Tianjin and Dalian and will be opening in various cities across the country this week, with some 530,000 jobs on offer.

According to the Ministry of Human Resources and Social Security, students majoring in business management, electronics and information, economics, engineering, foreign languages, construction and architecture, medicine, law, transportation, and chemistry and pharmaceuticals have the best chance of landing a job.

Despite the ministry’s upbeat announcement, the job prospects for this year’s college graduates are, frankly, not too bright.

The world is suffering from a global credit crunch. It seems virtually no country will escape economic recession.

In the US alone, millions of families may lose their homes. Consumer spending has ground to a halt, meaning that there will be far less demand for products from China. Already, as orders decline and exports shrink, tens of thousands of enterprises have closed down, while many others have cut back their production and employment.

Last year, 34.2 percent of China’s 3.5 million college graduates landed jobs with private businesses. How many such jobs will be available this year?

Some 350 businesses have listed about 30,000 positions on a job-placement website for university graduates. In the same period last year, 450 enterprises offered 50,000 jobs.

No wonder both the Internet and traditional media are filled with advice for worried job-seekers. Unfortunately, much of this advice raises unrealistically high hopes, hopes that in many cases are destined to be dashed.

Personally, I believe there is too much emphasis on starting salaries. In a recent online poll, only 3.81 percent of prospective college graduates said they did not care about starting salary, and less than 10 percent said they’d accept a starting salary of less than 1,500 yuan.

It has been suggested that the government set a minimum salary for college graduates. While I don’t think college graduates should enjoy a special minimum salary, the state at least should compile accurate information about the job market and provide it to graduates in a timely manner.

Colleges and universities, too, must shoulder more responsibility for helping job-seekers. Institutions of higher learning should not forget the heady days three years ago, when they claimed their employment rate was somewhere around 99 percent.

Ultimately, however, the responsibility for their future rests on the graduates themselves. They must think hard about what they want to do and make realistic choices as they look for jobs.

Frankly, the attitude of some college graduates leaves a lot to be desired. Back in the 1980s, I remember one new tour guide telling a colleague that she couldn’t care less whether the foreign tourists she was looking after caught a cold or not. Such attitudes are intolerable in any workplace.

Over the years, I’ve helped quite a number of talented young people join China Daily. They came with a clear interest in writing for a newspaper. Their first assignments were often not the challenging, important tasks they dreamed off, but they persevered. One young colleague of mine worked the night shift for three months for free, just to get a job.

Eventually, those who showed devotion, discipline, and creativity won the trust of the editors. They are the ones who have been steadfast in their work and have become good reporters and editors.

To get a good job, today’s graduates have only themselves to depend on.

China Online Job Hunters Totaled 118.726mn

BEIJING, Nov 07, 2008 —

China’s online recruiting websites lured 118.726 million individual members and 7.65 million company members as of Q3 2008, respectively leaping 70% and 34% from a year ago, according to a recent report by technology, media and telecom (TMT) market researcher Analysys International.

The top three recruiting websites, 51job, Inc. (Nasdaq: JOBS), ChinaHR.com Corporation, and Zhaopin.com respectively had 37.10 million, 23.15 million, and 14.90 million registered job hunters, as well as 1.01 million, 1.038 million, and 420,000 company members.

Efficient browsing time of Chinese online recruiting websites increased to 16.22 million hours in September from 14.11 million in August, representing an increase of 15%. And the number is forecast to grow further in October, according to an earlier report.

Monthly coverage index increased 4.1% from the comparable period one year ago. The top six recruiting websites all saw their efficient browsing hours climb during the period. Yingjiesheng.com, a recruiting website especially for new graduates, witnessed its efficient browsing hours rise drastically by 273.7%.

‘Go China’: Dragon recruiting in gloomy London, New York

SHANGHAI (AFP) — Spotting an opening in the global fight for talent, China’s ambitious financial institutions are planning recruiting trips to London and Wall Street on the wounded financial titans’ home turf.

Sovereign fund China Investment Corporation has begun a global search, multi-billion dollar Chinese-French fund Fortune SGAM plans interviews on Wall Street and Shanghai’s government is headed to London and New York next month with job offers in hand.

“There are layoffs on Wall Street since the crisis but China’s financial industry is still in its infancy and is hungry for talent,” Pei Changjiang, chief executive of the Fortune SGAM Fund, told AFP.

It is estimated that the economic turmoil could lead to 165,000 job losses in New York over the next two years, while British think tank Oxford Economics predicts 194,000 job cuts in London over the same period.

But from Shanghai the message to the brightest finance minds is unmistakable: China is hiring.

Han Zheng, mayor of the China’s rapidly growing economic hub, has previously said by 2010 — when Shanghai hosts the World Expo — the city will have an infrastructure worthy of an international financial centre. By 2020, he said, it will be one.

Since the financial crisis, city officials are saying that could now come even sooner.

“The crisis has presented a rare lesson and opportunity and generally it will help accelerate the establishment of Shanghai as a global financial hub,” said the city’s deputy mayor in charge of economic affairs, Tu Guangshao.

“The US is a fatty and needs to take diet pills but in contrast China is still skinny… It needs to build a strong body,” the former vice-chairman of China’s securities watchdog wrote in an opinion piece in the official China Business newspaper.

More than 600 financial institutions had offices in Shanghai at the beginning of the year but finance jobs account for only 2.4 percent of the 9.1 million-strong workforce, compared to 11 percent in London and 12.7 percent in New York.

“More foreign financial institutions will be willing to operate in China, where financial service is in short supply, as their business at home contracts,” said Fang Xinghai, director of the city’s Financial Services Office.

The city government will be recruiting for more than 80 positions in leading banks, insurers, securities firms and asset management companies, Fang said.
Meanwhile the 200-billion dollar China Investment Corporation, or CIC, advertised more than 30 positions ranging from fixed-income investment to stock analysis.
SGAM, a joint venture between state-run steelmaker Shanghai Baosteel Group’s investment arm and French bank Societe Generale, confirmed it was sending a team to the United States to look for good quality hires but would not say how many, or who the ideal candidates might be.

“The actions being taken by these Chinese firms are clearly a good move that prepares for the recovery and maximises people’s value through the hard times,” said Jenny Li, a Greater China managing director of Hewitt Associates.
The biggest deterrent for the finance world’s smartest is likely to be the overregulation and the bureaucracy that comes with working for firms that are ultimately controlled by the state or state-run firms, experts said.

“Financial experts are unlikely to want to come to work in a state-owned enterprise unless that enterprise has a tremendous amount of autonomy. I’m not sure CIC for instance has that autonomy,” said Menzie Chinn, an economist at University of Wisconsin.

However, with 1.9 trillion dollars in foreign reserves, China is in an unrivalled position to pursue its ambitions to expand its financial and that presents an amazing opportunity to deal-makers, said Linda Stewart, head of Epoch, a Boston-based financial services recruiter.

“At this time China is holding all the cards — and all the US currency,” she said.