Archives 2009

China to release document regulating SOE executive salaries

A Chinese official says the government is writing up a document to more effectively regulate State-owned enterprises (SOEs) as well as executives’ salaries.

Hu Xiaoyi, Vice Minister of Human Resources and Social Security said the document would be released in the near future during an Aug. 4 press conference held by the State Council Information Office.

Hu said two steps would be taken to regulate SOE executives’ salaries. The government will firstly regulate the salaries of SOE executives in central enterprises and then instruct local governments on setting the salaries of those executives running local companies.?

“Five principles are used to formulate this document,” Hu explained. “We should combine market regulation with government supervision; strike a balance between short-term and long-term financial incentives for their achievements; improve salary regulations; provide insurance for employees; and coordinate salary increases for executives of SOEs and for employees.”

Jobs increase in second quarter

China saw a slight increase in jobs in the second quarter while its urban unemployment rate stayed at 4.3 percent, bucking a global shrinking job market, the Ministry of Human Resources and Social Security said Friday.

From February to June, the number of jobs grew by 0.13 percent over the previous quarter (October 08 – January 09), according to a ministry survey of more than 513 major companies in five provinces.

“It is a very slight but very positive change,” ministry spokesman Yin Chengji said.

The number of jobs fell by 8.05 percent between October and January, but the government’s stimulus package helped stem urban unemployment after two consecutive increases since the fourth quarter last year, he said.

Due to the global economic slowdown, the jobless rate rose to 4.2 percent in the fourth quarter last year – the first increase in five years, before hitting 4.3 percent in the first quarter of this year.

The ministry aims to keep the unemployment rate below 4.6 percent this year, which would still make it the highest level of unemployment since 1980.

The jobless rate does not include the country’s 230 million migrant workers, who make up the main workforce in the labor-intensive industries of the coastal regions.
Officials from the National Bureau of Statistics had earlier said that more rural migrant workers found jobs in cities in the second quarter, up by nearly 4 million from the first quarter.

“The employment situation has been stabilizing after the rebound in the first quarter,” Yin said. “It is better than expected.”

The ministry has achieved more than half of its goals in the past six months, creating jobs for 5.69 million new urban workers, 2.71 million laid-off workers, and 790,000 people who were facing difficulties finding work, officials said.

This year, the ministry aims to create jobs for 9 million new urban workers, 5 million laid-off workers and 1 million others encountering difficulty finding work.

6 talents succeed at AVIC’s global recruitment drive

Six talents were selected to be vice-presidents of five subsidiaries under Aviation Industry Corporation of China (AVIC) on August 5. This marks the successful conclusion of AVIC’s global recruitment drive to find top executives.

It is the first time for Chinese security enterprises to seek high level executives worldwide. All of the jobs were open to foreigners and the search was not limited to China-born managers. The recruitment drive was launched on Feb. 26, 2009 and around one thousand applicants from over twenty countries and regions had signed up.

According to the company, most of the six executives had worked for large scale state-owned enterprises (SOEs) and governments before. As all of the jobs will involve dealing with some of the corporation’s restricted information, background checks will be performed on them. They are also asked to sign confidentiality agreements.

AVIC is the first Chinese aerospace manufacturer and security company listed in the Fortune Global 500, ranking 426 in this year’s list released on July 8.

AVIC is the originator of AVIC Commercial Aircraft Engine Company, which will engage in research, design, production, sales, maintenance, service and technological consulting for jet engines and related products. AVIC holds a 40 percent stake in this new company.

Job market recovering well in cities

Jobs are once again becoming available in China’s major cities, and migrant workers are returning in droves after last year’s exodus brought on by the global financial crisis.

The Pearl Delta, which has traditionally depended on migrant workers, was badly hit by the global financial crisis last year. Many enterprises eliminated jobs, and migrant workers were forced to return to their home provinces. But now, the employment picture has greatly improved, and workers are returning.

Gui Linchan, Manager of Great Wall Computer, Shenzhen said “We hired more workers recently compared to last year. Since February, we hired six to seven hundred.”

In the first half of the year, urban employment stopped falling and began to rise, while 95 percent of the migrant workers who returned home are now coming back to the cities and planning to find work.

Yin Chengji, Spokesman of Ministry of Human Resources & Social Security said “In the fourth quarter of last year, China’s urban employment fell sharply. But it soon recovered in the first quarter of this year, and stabilized in the second quarter. We think that the general employment situation is better than expected.”

The increase of jobs is directly linked to the four trillion yuan stimulus package that the government launched at the end of 2008. It is also attributable to preferential policies, including promotions for home appliances purchases in rural areas and an increase in tax rebates.

The job market just got harder

Those few employers that are adding staff are sifting through more résumés than ever.

According to the Bureau of Labor Statistics, employers on average, are evaluating 5.4 candidates for each of their openings. The calculation is based on April 2009 figures.

To show how quickly the picture has changed, consider that employers were seeing only 1.7 candidates per opening in December of 2007.

The April figure was a hefty jump from March, when employers were seeing 4.8 candidates per opening.

Asia executive hiring better but still slow -Hudson

By Susan Fenton

HONG KONG, July 9 (Reuters) – Job prospects for executives in Asia have improved in the past three months as employers expect business to pick up later in the year, though they are still cautious about adding headcount, a quarterly survey showed on Thursday.

Hiring expectations in Singapore rose in the past three months for the first time since early 2007 and in Hong Kong increased for the first time since early last year.

Still, only 26 percent of Singapore employers plan to take on staff in the next three months, up from 20 percent last quarter, and in Hong Kong just 22 percent expect to be recruiting, up from 14 percent.

In China, only 27 percent of respondents said they would be hiring, down slightly from 30 percent in the previous quarter. However, recent economic data suggest the world’s third-biggest economy is accelerating and 34 percent of companies in the manufacturing and industrial sector aim to take on staff this quarter, up from 21 percent last quarter.

The survey previously covered Japan but Hudson, part of Chicago-based Chicago-based Hudson Highland Group ( HHGP – news – people ) Inc, said it closed its Japan operation in April and would no longer include the country in its quarterly surveys.

Shenzhen lowers job pay scales

The government in Shenzhen has lowered the income benchmarks for the first time since 1999 to soften the impact of the financial crisis on local companies.

The municipal labor authority issues the income benchmarks annually to serve as a reference for 566 types of jobs in the city.

The highest-level and medium-level benchmarks stand at 23,700 yuan ($3,470) and 2,460 yuan per month, respectively, decreasing by 8.5 percent and 3.9 percent each from last year.

However, the low-level income benchmark gained a 7 percent year-on-year rise this year to 1,102 yuan per month, which labor officials said should be attributed to the government’s measures to protect low-income laborers.

“Our payment adjustment policy is to control the high-income group, expand the medium-income group and protect the low-income group. It’s a way to narrow down the income gaps,” said Wu Liyong, director of the income division of Shenzhen Labor and Social Securities Department.

Workers are encouraged to use the benchmark when negotiating their wage with employers.

Last year, the official surveys showed that the lowest-level salaries on average were 25 times less than the highest salaries. This year, surveys showed that gap has narrowed to 21.5.

The authority also recorded the biggest income gap in the financial industry, including security houses, insurance companies and banks, where the highest-paid person could be earning 80 times what the lowest-paid person earns.

Several residents polled by China Daily yesterday in different industries expressed their concerns about salaries shrinking this year.
“Possible pay raise this year? Are you kidding? I would feel relief if no pay cut occurs,” said Lin Zhen, an accountant working for a leading computer manufacturer.

Liu Yue, a manager at a State-owned bank, said some of her benefits have been greatly cut since early this year, including money for travel and major public holidays.

“Our salaries have been increased over the past few years given the relatively low level in the industry, but I still feel the total wage was reduced this year. I learned that the salary cut was even bigger in banks that have offered top payment in the industry,” Liu told China Daily.

Piao Ye, a human resources manager at a beauty salon, said the income for the entry-level workers has not been increased as much as the government indicates.

“The company provides dormitories to them and they could get 1,000 to 1,500 yuan a month, which could just maintain a very simple life in the city with high consumption index,” she said.

Officials at the labor authority said they are not making plans to further increase the minimum level this year.

China’s job situation improves

Employment in China’s southeastern regions is rising steadily. Due to the increasing orders, many enterprises are even suffering a shortage of workers.

Employment in China’s southeastern regions is rising steadily. Due
to the increasing orders, many enterprises are even suffering a
shortage of workers.

Figures show the jobless rate in China’s Pearl River Delta region has eased since May. Employee demand for Guangzhou and Dongguan increased 15 percent in May, and 10 percent in June. Shenzhen had its first employee shortage in April, and some job seekers have received more than two company offers.

Cai Huanxing, Inspector of Shenzhen Labor & Social Sec. Bureau said “Most of the job offers come from the machinery and manufacturing sectors. Based on our estimates, Shenzhen is short of 100,000 workers right now.”

Although the demand for employees is rising, many job seekers are still holding a “wait and see? attitude. About 600,000 migrant workers have left China’s industrial heartland, as the world economic crisis hits the region. That’s why companies in the Pearl River Delta region are suffering recruitment difficulties.

Human Resourves Rep. of Shenzhen Company said “We need 300 workers. But we have actually only 3 people. Obviously that number is way below our target.”

Beijing Subway says it needs 20,000 more workers

Beijing Subway announced Monday it would more than double its workforce with an extra 20,000 staff as its operations expand to 561 kilometers by 2015.

The city had eight subway lines, totaling 200 km and hauling 4 million passengers daily, already in service, said the company in a statement on its website.

Beijing Subway has 16,000 people on its payroll, 10 percent of whom have worked on the subway for less than a year.

The company said the municipal government had been increasing investment in building training establishments and teaching skills to deal with the labor shortage.

68% of college graduates land jobs

China is under pressure to find jobs for 6.1 million college students graduating this summer. Efforts from various governments and colleges have had limited success. The Ministry of Education says by July the 1st, 4.15 million, or 68 percent of new graduates have landed job.

China is under pressure to find jobs for 6.1 million college students
graduating this summer.

The number of college students graduating this year increased by 440-thousand, from 5.7 million last year. So far, the employment rate is about the same compared to that of a year ago.

To cope with the pressure of finding jobs for fresh graduates, China has adopted polices to increase employment opportunities.

The Ministry of Education launched a teacher recruitment plan in rural areas, which absorbed 200- thousand graduates. 120-thousand graduates have put their name on the lists to become a soldier in the army, and another 200-thousand graduates have signed contracts with outsourcing enterprises under the program launched by the commerce and education ministries. Meanwhile, 120-thousand graduates will go to rural areas or less-developed western regions to start their career.

Zhang Haoming, Deputy Director of Department of University Students’ Affairs of Ministry of Education said “College graduates who haven’t landed jobs can contact local human resources and social security departments. They can have training, guidance and internships offered by them to find a job as soon as possible.”

The Ministry of Education is vowing to coordinate efforts with other departments concerned to find jobs for 70 percent of graduates by September the 1st.