Category HR News Express

China Labor Market Report 2012

China’s Labor Market Report 2012 just released in Beijing shows a large number of university students left campus without finding a job in the past decade. Experts believe that unversity recruitment expansion is not the cause of high unemployment among graduates. Boosting education reform and adjusting demand and supply in the labor market is the key to the solution.

The expansion of college recruitment started in 1999 when 1.6 million students were admitted to universities and colleges in China that year. The figure was 50 percent higher than the previous year.

After that, the student recruitment scale kept growing at a fast pace; in 2012, more than 68 million students entered universities and colleges.

Since 2002, the year when the first batch of students in the recruitment expansion period graduated, to 2012, more than 47 million college students graduated and entered the labor market. Their skill and knowledge effectively enhanced the general level of the labor force. Statistics show that less than 5 percent of the labor force in the year 2000 had received a higher education, this figure reached more than 10 percent in 2010.

However, the Dean of Chinese Academy of Personnel Science Wu Jiang says the rate of employees with a higher education in the Chinese labor market still lags behind other countries.

“This rate is far from sufficient. The figure in some countries already reached about 20 percent in 2005. We hope to achieve this goal in 2020.”

Analysis indicates that if there were no college recruitment expansion, the pressure in the labor market may come more from the low-end market. It’s hard to imagine what influence a large scale low-end labor market would have on the country in terms of the economy and family life.

In spite of the improvements, the first time employment rate among college graduates remain low. Figures show that from 2002 to 2012, more than 30 percent of the college graduates failed to find jobs before they graduate. That is to say, more than 1 million college graduates are unemployed every year.

The Labor Market Report 2012 also points out that among those unemployed, 40 percent are students of law, economic management, accounting, business and foreign trade. But 90 percent of the students majoring in science and technology, medical science, agriculture, education are employed following graduation.

Tang Min, counselor at China State Council says education reform is one of the key causes.

“The biggest problem is our education reform didn’t follow up. A significant amount of students have a hard time in catching up the changes in the society and our universities failed to give them sufficient base knowledge to tackle the changes.”

Dean of Economic Management Institute of Beijing Normal University Lai Desheng believes that the recruitment expansion should not be blamed for the college graduates’ high unemployment rate.

The report also points out that there is a regional imbalance in the labor market because students prefer larger cities.

Xie Ying, is the director of medical reform team at a medical bureau in Bijie, a low income city in Guizhou Province.

“Most college graduates choose to work in bigger cities like Guiyang or Zunyi, rather than Bijie. Some students whose hukou, or residency permit, is here choose to come back to Bijie but there are very few who would like to work here.”

The China Labor Market Report 2012 figures show that in the past 10 years, only 12 percent of the new graduates are willing to work in rural areas, and no big change has been seen in the rate since 2002.

Despite the fact that economic development in China’s less developed mid- and western areas has improved in recent years, more than 50 percent of the graduates still choose to work in the east where the economy is better developed. Students who possessed master’s and doctor’s degree will spare no effort to find employment in cities like Beijing and Shanghai. This phenomenon remains prevalent.

Popular employment choices for graduates are education, public management, social organization and manufacturing. Information industry, media, real estate and commercial services are also popular.

51job’s CEO Discusses Q1 2011 Results – Earnings Call Transcript

51job, Inc. (JOBS) Q1 2011 Earnings Call May 5, 2011 9:00 pm ET

Operator

Good morning and good evening ladies and gentlemen thank you for holding. Welcome to the 51job, Incorporated first quarter 2011 conference call. At this time, all participants are in a listen-only mode. After the presentation there will be an opportunity to ask questions (Operator Instructions). I will now hand the conference over to Ms. Linda Chien, Assistant Vice President of Investor Relations. Thank you, Madam. Please go ahead.

Linda Chien

Thank you all for attending this teleconference to discuss un-audited financial results for the first quarter ended March 31, 2011. With me for today?s call are Rick Yan, Chief Executive Officer and Kathleen Chien, Chief Operating Officer and Acting Chief Financial Officer. A press release containing first quarter 2011 results was issued earlier today and a copy may be obtained through our website at ir.51job.com.

Before we begin, I would like to remind you that during this call, statements regarding targets for the second quarter of 2011, future business and operating results constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended and as defined in the Private Securities Litigation Reform Act of 1995.

These statements are based upon management?s current expectation and actual results could differ materially. Among the factors that could cause actual results to differ are the number of recruitment advertisements placed, sales orders received and customer contracts executed during the remaining weeks of the second quarter of 2011, any accounting adjustments that may occur during the quarterly close; fluctuations in the value of the Renminbi against the U.S. dollar and other currency; behavioral and operational changes of customers in meeting their human resource needs as they respond to evolving social, economic and political changes in China as well as stock market volatilities; introduction by competitors of new or enhanced products or services; price competition in the market for the various human resource services that the company provides in China; acceptance of new products and services developed or introduced by the company outside of the human resources industry and fluctuations in general economic conditions.

For additional information on these and other factors that may affect the company?s financial results, please refer to the risk factor section of the company?s filings with the Securities and Exchange Commission. 51job undertakes no obligation to update targets prior to announcing final results for the second quarter of 2011 or as a result of new information, future events or otherwise.

Now I?ll turn the call over to Rick.

Rick Yan

Thank you, Linda. And welcome to today?s call. I will begin with highlights of the first quarter, followed by Kathleen with her detailed review of our financial results. I will then discuss current market conditions and recent developments. Finally, we?ll open the call to your questions.

Results for the first quarter came in ahead of guidance as the positive economic climate and robust hiring activity in China throughout demand for our services. We reported total revenues of RMB 325 million or approximately $50 million, an increase of 28% over the first quarter of 2010. We saw solid revenue growth in each business area. The momentum of our online services business remained strong with online revenues increasing 57% year over year.

We have employers across all geographies utilizing our established sales office network to further penetrate existing markets and our Wuhan call center to serve employers in new cities. This two pronged approach has enabled us to acquire new customers more effectively and efficiently than ever. Our print advertising business also performed well in the first quarter. Although, we have discontinued publications in six cities since the beginning of 2010 through the first quarter of 2011; print revenues were better than expected and decreased by 6% due to the exceptionally strong seasonal demand in the post Chinese New Year period.

In our other HR services business we make steady progress in continuing to gain customer attraction. Revenues for the other HR services increased 25% led by growth in outsourcing and training services. While we are very pleased with our top line the greater accomplishment of the first quarter was the meaningful margin expansion that resulted from the revenue of the performance. The record margin efforts highlight the powerful economies of scale and scope we have built into our service model.

Through unrelenting operational discipline and a consistent focus on efficiency improvement which drove gross margin to 70% and operating margin to 35% despite absorbing higher employee compensation expenses and investing in product development and technology innovation. Since our inception 13 years ago we have not wavered from our guiding management principle to realize sustainable profitable growth for our shareholders. We believe this first quarter financial results reflect our continued progress towards this goal.

I would now turn over the call to Kathleen for more detailed financial review.

Kathleen Chien

Thank you, Rick. Revenues for the first quarter totaled RMB325 million, a 28% increase compared to the same quarter in 2010. Our online revenues for the first quarter were RMB173 million, an increase of 57% compared to the same quarter in 2010. The number of unique employers using our online services increased 38% year over year to nearly 155,000 companies in the first quarter due to the strong market demand and our customer acquisition efforts. We also saw a 14% increase in the average revenue per online customer compared to the year ago quarter as employers faced greater competition for talent and thus purchase more services to meet their recruitment targets.

Print advertising revenues decreased 6% to RMB86 million compared with RMB92 million in the first quarter of 2010. The decline was primarily due to the discontinuation of print operations in certain cities over the past year as well as the resulting decrease in page volume. Print advertising pages in the first quarter of 2011 decreased 28% to approximately 2200 pages compared with about 3100 pages in the prior year?s quarter. However, the page volume decrease was largely offset by the higher revenue per page assisted by the strong seasonal demand or average revenue per page increased 31% due to greater contribution from the higher priced cities as well as an increase in print advertising rates in a few cities in the first quarter of 2011.

In line with the historical trends we expect print revenues in the second quarter to decline in both absolute terms and as a percentage of total revenues. We have also terminated the publication in the city of Kunming in April. This reduces the number of cities in which we operate print operations to 15. Our HR services revenues grew 25% to RMB65 million in the first quarter of 2011. We achieved solid growth in our outsourcing and training businesses due to the greater customer acceptance and demand.

Gross profit increased 39% year over year to RMB215 million and gross margin increased to 70% from 64% in the first quarter of 2010. The margin expansion was primarily due to the process improvements and our operating efficiency. Included in cost of services in the first quarter was share based compensation expense of RMB1 million, though the marketing expenses increased approximately 26% year over year to RMB71 million in the first quarter of 2011 mainly as a result of higher employee wages, commissions and bonuses. Included in sales and marketing expenses were share based compensation expenses of approximately RMB0.8 million in the first quarter.

For the second quarter we will be stepping up advertising and brand building activities but we expect sales and marketing expenses to be within the historical range of 25% to 30% of net revenues. G&A expenses for the first quarter were RMB37 million down slightly from the year ago quarter. Share based compensation expense included in G&A in the first quarter was RMB4.3 million, operating income for the first quarter of 2011 increased 77% to RMB 107 million compared with RMB61 million in the same quarter in 2010.

Our operating margin expanded to 35% compared with 25% in the first quarter of 2010. Net income for the first quarter increased 82% to RMB92 million compared with RMB50 million in the same quarter of 2010. Fully diluted earnings were RMB1.55 per common share which is equivalent to $0.47 per ADS. Excluding share based compensation expense, foreign currency translation loss and their related tax impacts our non-GAAP adjusted net income increased 78% year over year to RMB101 million in the first quarter. Non-GAAP adjusted fully diluted earnings per common share were RMB1.71 or $0.52 per ADS.

In late April, we issued stock options to employees and directors at their market value. As a result we expect that share based compensation expense will increase from RMB6 million in the first quarter to approximately RMB10 million in the second quarter. Looking at our balance sheet, our cash and short-term investments increased to RMB1.7 billion or approximately $265 million. Short-term investment consists of certificate of deposit with original maturities from three months to one year. Now I will turn the call back over to Rick.

Rick Yan

Thank you, Chien. Our observations of hiring trends and employer behavior that?s just slightly in 2011 continue to indicate robust market demand. We saw a strong uptick in job listings across the board in a post Chinese New Year period, picking at more than 2 million active job positions. The competition for managerial talent and experienced workers in particular has also become increasingly fierce among employers driving wages increased and greater spending on recruitment services. Amid a backdrop of these favorable market conditions we roll out a new rate card online services which went into effect on April 1. In addition to the introduction of new services and packages we instituted a number of price adjustments which very widely depending on product and city.

As existing customers already under contract will not be subject to these new prices until renewal, the impact of the new rate card would be limited in the second quarter. The length of our online services contracts typically ranges from one month to one year. Therefore, we expect to gradually realize mid-to-high single digit increase in average revenue per customer from the new pricelist through 2011.

While we are taking opportunity to capture some pricing upside we are staying aggressively in our customer acquisition and geographical expansion efforts. In late April, we launched seven new channels to our website adding 13 cities serviced by our Wuhan call center. We now provide dedicated sales coverage and support for our online products to employers in 56 cities. We will further increase our national footprint this year.

Recently, there have been media reports regarding new and potential entrance into the online recruitment space in China. However, to-date the competitive landscape feels generally unchanged to us as we maintain and establish a widely acknowledged market leadership position, to reach knowledge and relationships we have into hundreds of thousands of HR departments is unparalleled. We have leveraged these assets into becoming a trusted partner to corporations across all the human resources needs, not just providing them with an advertising platform.

We know how to compete, we know how to execute and we know how to monetize. With ample financial resources backed by strong balance sheet in our highly experienced call management team, we are confident that we can continue to win. Now turning to our guidance, based on current market and operating conditions, our total revenue target for the second quarter of 2011 is in estimated range of RMB325million to RMB335 million which will be a 26% year-over-year increase at the midpoint. Our estimated non-GAAP fully diluted EPS target is between RMB1.6 to RMB1.7 per common share.

Please note that, if non-GAAP EPS range does not include share based compensation expense, foreign currency translation loss know their related tax impact. As Kathleen mentioned earlier, our share based compensation expense is expected to increase to approximately RMB10 million in the second quarter. This guidance reflects our current forecast which is subject to change. In addition, seasonality in our businesses, we remind you that sequential quarterly comparisons can be misleading, and we believe year-over-year comparisons are more applicable for measuring our financial performance.

Our priorities going forward are crystal clear. We are focused on growing our customer base, increasing revenue opportunities, investing in new product development and delivering solid returns to our shareholders. We believe the stock we have had in 2011 provide further confirmation that we are executing the right strategic plan to develop the most powerful brand in human resources services in China.

That concludes our presentation, we will be happy to take your questions at this stage. Operator?

Another Chinese LinkedIn? – Oak Pacific, Zhaopin Launch Professional SNS

Jingwei.com, an SNS aimed at business professionals created by Beijing-based holding company Oak Pacific Interactive and Chinese online recruitment site Zhaopin, officially launched today.

In closed beta since earlier this month, registration on Jingwei is now open to the public; adding “friends” on the new site requires an “introduction” from a mutual acquaintance of both parties.

Jingwei spokesperson Shu Wei said the site will host “Company Day” events beginning in April, allowing employees from global Fortune 500 and well-known domestic firms to ‘mingle’ on companies’ designated pages on the site.

China?s HR Market: How Much Are Your Employees Worth?

Mar. 16 ? While 10 years ago, China?s low-cost labor force was one of the major drivers pushing foreign manufacturers to choose the emerging nation as their production base, nowadays China?s human resource (HR) market is witnessing significant changes alongside its developing industrial landscape. But while it is widely recognized that hiring is becoming more expensive across the country ? especially in some industries and in major coastal cities like Shanghai – it should also be noted that the overall HR market is becoming more mature for employers.

More expensive hiring

According to the latest statistics released by Robert Walters in its 2011 China Salary Survey, recruitment activity increased in the first half of 2010 and peaked between April and June as the Chinese economy quickly recovered from the Global Financial Crisis amid strong market conditions. The survey predicts that in 2011, salary rises are likely to be around 10 percent across various industries, while top-tier candidates may command approximate 15 percent to 30 percent increases in their compensation.

The size of a company?s hiring budget is closely related to China?s policy alterations and economic development focus. Furthermore, a strong demand for information technology (IT) advancement, encouragement in merger and acquisition (M&A) activities, prosperity in consumer markets, and China?s attempts to further open up its financial sector mean that businesses in the fields of financial services, accounting, IT, sales and marketing may need to prepare bigger paychecks for their employees.

Shanghai: an increasingly mature HR market

Zhang Sheng, the Commerce Finance Division manager of Robert Walters, describes Shanghai as the third most mature hiring market in Asia among commerce-centered cities, following Hong Kong and Singapore. As Shanghai gains growing global presence and is ready to accommodate headquarters of international businesses, employers will be impressed to find out there is a significant number of candidates available with both local and international experience that make them completely qualified as being ?decision makers? instead of ?command followers.?

Professionals with local experience in the Shanghai market are of much value for employers who look to set up their business in Shanghai, since many of them have grown and learned with China?s rapid development and reforms in the past decade. The distinct development stages China has gone through in such a short period has enabled them to master a much wider span of business knowledge than those working in a country with relatively stable development.

The Shanghai HR market?s maturity also resides in its mounting diversity and comprehensiveness.

?You can find professionals at all levels to meet your demands in the city,? Zhang emphasized.

The overall national infrastructure development has not only made it easier for companies that want to take advantage of the lower cost in China?s inland cities to relocate their manufacturing bases and build up a national supply chain, but it also makes it more possible for those employers to hire people who are willing to relocate. The changing attitude to relocation means a senior manager can stay with a company longer, have a better understanding of the company?s periodical strategies, and thus become more qualified for participating in long-term decision-making.

The staff loyalty mystery

While loyalty is supposed to be highly valued in the Chinese culture, staff loyalty is becoming more and more of a mystery for many employers. On one hand, with a massive HR supply, the competition in China?s job market is fierce; on the other hand, companies still often find it difficult to maintain a comparatively stable staff since many employees hop from one job to another frequently for better opportunities or pay.

Zhang believes that low staff loyalty has something to do with China?s growth pattern. The country?s fast shifts in development focus has led to professional shortages in some fields. For example, While China?s M&A market just started booming two years ago, the supply of professional accountants that can help complete compliance processes failed to meet the surging demand, because it definitely takes longer than two years for an accountant to grow mature and competent enough for those positions. The imbalanced supply-demand relationship resulted in companies bidding for the limited amount of professionals, and finally facilitated the phenomenon of ?job changers.?

In order to maintain valuable employees, companies may need to take a closer look at China?s policy trends to receive a better understanding of when is the best time to offer employees more incentives. A universal 30 percent post-financial crisis salary increase in many companies that cut redundancy during the crisis is a good example showing how those employers perceive the ever-changing HR market conditions during different periods.

China spending big for skilled labor, recruiters say

HONG KONG (MarketWatch) ? Headhunters recruiting in China say they?ve rarely seen busier times.

Domestic and multinational companies seeking to bolster staff as part of bold expansion plans in the Chinese market have sparked frenzied bidding to attract qualified personnel across a broad ranges of industries, recruitment experts say.

Candidates with the right level of education and skills are typically seeing inducement offers that include salary increases of 40% to 50%, in addition to enhanced responsibility.

?I think China is the hardest place right now to secure talent and to retain talent,? said Christine Greybe, president of recruitment firm DHR International in Hong Kong.

She estimates that about 30% of candidates who plan on leaving their companies receive counteroffers which match or even exceed the rival offer, as companies grow wary of the loss of personnel through poaching.

?A lot of attention is going towards finding ways to keep talent, which is very unusual to anything we saw before,? Greybe said.

The hiring drive reflects ambitious plans among multinationals to secure opportunities in China. In some cases, companies are seeking to double or even triple managerial staff within a few years, cramming growth that would normally happen in a 10-year window, experts say.

?There?s been a redoubling of growth imperative of by multinationals trying to head into Asia, because companies are finding it hard to grow in the U.S. and Europe,? said Mike Game, the Hong Kong-based Asia chief executive officer for multinational recruitment company Hudson.
China growing its state media

China’s state media are expanding aggressively to compete with private Internet companies.

Mainland Chinese companies are also offering more competitive wages for their senior executives, shrinking what?s been traditionally a gap with compensation packages offered by multinationals.

In some cases, Chinese companies are now paying salaries and packages that meet or beat those offered by Western companies, says Greybe, adding executives in technology companies ? such as Chinese Internet giant Tencent Holdings Ltd. /quotes/comstock/22h!e:700 (HK:700 218.20, -6.00, -2.68%) /quotes/comstock/11i!tctzf (TCTZF 28.94, +0.09, +0.31%) ? look more to stock options and other forms of compensation outside of salaries.
The place to be

?China is the place people want to be. They are not interested in a job in the U.S. in the way they may have been two or three years ago,? Greybe said, referring to China-born professionals.

Chinese companies accounted for 54 of those in the Fortune 500 list in 2010, up from 35 in 2008.

Greybe said that some clients take the view that careers spent at home could pay bigger dividends, given China?s rising status in the global economy.

In fact, leading Chinese firms are now more sought after than multinationals among mainland engineering graduates born between 1980 and 1990, according data compiled by recruitment company AonHewitt.

The jobs squeeze is also spilling over to service-center hubs outside mainland China, including Hong Kong and Singapore.

Lawyers with the right educational profile and job experience can expect to receive a half dozen offers within a few weeks, said Denvy Lo, a senior consultant with legal recruitment specialists Laurence Simons.

It?s fairly standard to expect pay rises of 30% to 40% when jumping firms, she said, adding that the frenzied recruiting conditions are reminiscent of the boom times of 2007.

?They will look around to see who can offer them the most and the best package,? Lo said.

Among those most in demand are China-born candidates who completed law degrees in the U.S. and have a few years? experience with multinational companies in Asia, Lo said.

China Employment Outlook: Boom or Bust?

The Manpower Employment Outlook Survey results for China were just released, with the data coming in a little worse than the previous two quarters, but strong compared to recent years. Net hiring intentions fell to 29% from 38% in Q1 this year, and a high of 51% in Q4 last year.

Chinese employers forecast an active labor market in Quarter 2 2011. While 34% of employers expect to increase staffing levels, 5% predict a decrease and 53% anticipate no change. The resulting Net Employment Outlook stands at +29%.

In short, though, the results are actually quite positive. Looking at the chart below, China is actually in the midst of a hiring boom. Compared to Q2 2010, much of its recent history hiring intentions for the second quarter of 2011 are still pretty strong. It’s no wonder, then, that you hear stories about rising wages in China, or labor shortages. And it’s this surge in employment that is creating an interesting set of threats and opportunities for the Chinese economy.

Looking at it on a sector-by-sector basis, the clear leader is Manufacturing, with a net 31% of firms looking to increase staff. The manufacturing sector also saw the smallest decrease compared to Q1 (down by only a couple of percentage points). Another strong sector is Finance, Insurance & Real Estate — which is interesting with the backdrop of a booming property market — with 10 million units of social housing set to be built this year.

Another strong sector is Services, with a net 28% of firms planning to hire; also interesting from an economic rebalancing angle. In other words, it is interesting to see sectors like Services, Wholesale & Retail Trade, and Finance doing well, as growth in these sectors will help China rebalance its economy to being domestic demand-led, rather than export-oriented.

So what is the overall synopsis? In terms of employment outlook, the answer is still “boom.” Net hiring intentions show firms still need to hire more workers, which can be driven by a number of things, but is usually motivated by growth of the business and a need to increase capacity. It’s this lack of spare capacity that is also contributing to higher inflation. Indeed, a key driver of inflation in China this year will not just be commodities, but also rising wage inflation.

This creates an interesting dilemma for the Chinese government: On the one hand it needs to stave off high levels of inflation to avoid instability and maintain a sustainable rate of growth; on the other hand, rising wages may also be a key catalyst in helping rebalance the Chinese economy and growing domestic demand, instead of relying on a low-cost export-oriented model. And of course there is the tension of reducing inflation, but without stalling the economy.

In short, the survey results suggest that the Chinese economy is still going strong, and is likely to continue to grow at a strong pace this year as domestic demand rises and government spending continues (the government plans to run a deficit this year). However, the inflation risks are highlighted and accentuated by this data point.

So it remains to be seen how the inflation battle unfolds. But as long as the fundamentals remain intact, it’s almost a certainty that buying opportunities will be present, especially if valuations overshoot in reaction to monetary policy tightening.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

LinkedIn Blocked In China, Then Unblocked

LinkedIn became accessible again inside China early Friday evening after the business networking site had been blocked Thursday ? was this a technical glitch, or is this part of an ongoing adjustment to the Great Firewall? Chinese authorities never explicitly verify intentional maneuvers individually, but they have been intensely vigilant of Web 2.0 services since their inception, and every other foreign social media site that leads its market is already blocked, including Facebook, Twitter, Youtube and Foursquare.

What would be the reason to block LinkedIn? The Great Firewall has never issued a press release, but the answer is usually obvious. What may do in LinkedIn (if the block rematerializes) is the ?Jasmine Revolution,? which so far has been not a protest movement but an occasion to display the reach of China?s security apparatus and the limits placed on China?s Internet. Self-described organizers say the attempts to protest will continue with weekly Sunday strolls in cities around China.

If LinkedIn has committed a Web 2.0 crime in China?s eyes, there are a couple possibilities: the most likely issue, given Beijing?s desire to quash organizing of any form, is that there have been attempts by Jasmine organizers to reach out to others over LinkedIn, thus spreading the word via LinkedIn invitations; another issue, raised by Techrice, is the built-in ability to post to Twitter via LinkedIn, getting around the Great Firewall without the need for circumvention tools. As Techrice notes, ?being the easiest way to tweet is a lousy government relations strategy in China.?

Sensitive events are almost always the catalyst for these blocks, and though initial blocks are often temporary (as was the case with Facebook and Twitter in the past), once you are on China?s ?do not connect? list, it is hard to get off. Youtube has been blocked since the Tibet riots of March 2008; Facebook and Twitter were each blocked permanently after the Xinjiang riots of July 2009; and location-based service Foursquare has been blocked since users tried to ?check in? en masse to Tiananmen Square last year on the June 4 anniversary of the 1989 massacre of protestors.

Chinese clones of these services naturally benefit from each of these Great Firewall ?upgrades.? Youku.com, the leading online video site, IPO?d in December and is valued on the New York Stock Exchange at $3.8 billion. Renren, the leading Facebook of China with 160 million users, is expected soon to raise $500 million in a U.S. IPO. Meanwhile, Mark Zuckerberg is clearly trying to get Facebook back into China, perhaps through a joint venture with a trusted Chinese company like Baidu.

Sina Corp.?s Weibo, the dominant Chinese Twitter-like service, launched in August 2009, a month after Twitter was blocked, and is likely approaching 100 million users. Analysts disagree widely on Weibo?s value, in part due to worries about whether Beijing would shut down or severely curtail the service, but guesses range from as low as $1.5 billion to as high as $3 billion. And there is no shortage of Chinese versions of Foursquare ? including Dianping, Jiepang and a check-in service on Renren ? but you can bet none of them will be allowing users to ?check in? to the Jasmine Revolution, much less Tiananmen Square on June 4 every year.

Who will gain if LinkedIn does get blocked? (LinkedIn, as Techrice noted, did not have a Chinese-language interface, was not a huge player in the China market to begin with, and should not feel ill effects if it ends up being blocked as it looks toward an IPO). No company has yet to become ?the LinkedIn of China,? but one widely cited contender is ushi.cn. One more candidate to watch for, reports Techrice, is Jingwei, a sister company of Renren that is in beta-testing.

SEEK profit up 31% as China Zhaopin swings to profit

SEEK Limited (ASX:SEK) grew its 1H profit 31% to $36.6 million, as a result of strong domestic growth and its Chinese venture Zhaopin swinging to profitability.

The company, which operates the employment website SEEK.com.au, reported a 22% year-on-year increase in revenue to $130.3 million. Ebitda grew 12% to $55.8 million.

The company’s employment business in Australia and New Zealand recorded revenue of $106.8 million and ebitda of $62.8 million, up 36% and 55% respectively.

SEEK’s outgoing joint CEO, Paul Bassat said the results reflect the ongoing migration of employment advertising from print to online. ?As employment markets have improved, growth in online job ads has significantly outpaced growth in print job ads,? he said.

He pointed to ANZ research which shows that online currently captures some 82% of all job ads.

SEEK’s Zhaopin joint venture, in which it owns a 56.1% stake, moved to profitability during the period, achieving a positive ebitda in each month.

But its SEEK Education businesses ? SEEK Learning, THINK and IDP ? had a challenging six months, Bassat said.

SEK shares fell 11.74% during Tuesday’s trading to $6.240.

SEEK on Tuesday also announced that Paul Bassat’s brother, Andrew Bassat has signed a contract to become the company’s sole CEO until at least 2013.

Seek takes JobsDB and increases its Asian/Chinese reach

INTERNET job hunting giant Seek has expanded further into southeast Asia, taking a $206 million stake in a Hong Kong-based online recruitment website.

Seek yesterday announced it had purchased the majority holding in employment website Jobs DB Inc, giving it a 60 per cent slice of the Chinese company through the creation of a new company, Seek Asia.

Seek Asia is a partnership between Seek, James Packer’s Consolidated Media Holdings, Macquarie Capital and Tiger Global.

Seek’s co-chief executive Andrew Bassat said the move into Asia “built upon the company’s existing international footprint” and exposed the company to “attractive regions”.

“We believe this transaction represents a compelling opportunity for Seek to play an increasingly meaningful role and to expand its exposure in the region.”

Seek’s latest acquisition adds to several other major international investments including Chinese online jobs board Zhaopin; Southeast Asian recruitment website JobStreet and employment sites in Brazil and Mexico.

Evans and Partners analyst Paul Ryan said the Jobs DB acquisition would be part of Seek’s long term strategy to become a leader in the Pan-Asian online employment market.

“When you add Jobs DB in, the combined businesses have a larger, more diversified and better presence in southern China,” Mr Ryan said. “It’s a bigger, more diversified and more profitable business.”

Mr Ryan said he expected Macquarie and Tiger Global to exit Seek Asia through an IPO at a later date.

However, another analyst said Seek may have been spreading itself too thin with its latest Asian investment following co-founder and chief executive Paul Bassat’s plans to leave the company in mid-2011.

“This is another company that they have to integrate and manage and try to grow,” said the analyst, who declined to be named.

Seek Australia has a 69 per cent holding in Seek Asia and the other 31 per cent, $64 million, will be divided between the three other co-investors.

Mr Packer’s $25 million Seek Asia investment was his first since selling out of Seek Australia last year for $440 million.

The media and casino mogul has also invested in Seek’s Brazilian acquisition, Brasil Online Holding, and made an unsuccessful attempt to get Paul Bassat on the Ten Network board.

Seek shares rose 1c to $6.57.

China, India lead list of best countries for new jobs

On CBS’ 60 Minutes last Sunday, the Brazilian billionaire Eike Batista told correspondent Steve Kroft that he’s hiring Americans to weld his oil platforms.

“To weld the platforms?” Kroft responded incredulously. “Yes,” replied Batista, explaining that his country’s booming economy is at almost full employment, and Brazil needs to import workers. “Already we have created this year 1.5 million jobs,” continued the world’s eighth richest man according to Forbes’ most recent tally. “It’s unbelievable.”

That unbelievable job growth is reflected in the latest global employment outlook survey by the staffing firm Manpower. Brazil rates fourth on the tally of the nations with the greatest optimism about hiring in the first quarter of next year. Brazil’s net hiring outlook–the number of employers surveyed who expect to increase their employment rolls minus the percentage who expect to decrease them–is 36%. That’s driven by a 7% gross domestic product growth rate, three times higher than in the U.S.

Manpower surveyed 64,000 human resource directors and senior hiring managers from public and private concerns worldwide to come up with its list. It asked each of them about their expectations for hiring in the first quarter of 2011. Almost half, 47% of them, came from 10 countries in the Americas, 24% from eight countries in Asia and the Pacific, and 29% from Europe, the Middle East and Africa. “This is very much a macro-economic look at new job creation,” says the staffing firm’s chairman and chief executive, Jeffrey Joerres.

The results are striking, if not surprising. India has pulled ahead of China since last quarter to take first place, with a whopping 42% net hiring outlook for the first quarter of 2011. China follows close behind at 40%, a 2% decrease from last quarter. Taiwan comes in third, with a net employment outlook of 37%.

Next in line, after Brazil: Turkey, at 27%.”There are 75 million people in Turkey,” Joerres notes, “more than people realize.” And so, despite a lingering debt overhang, there are plenty of consumers buying stuff and driving growth and hiring. Next up after Turkey: Singapore, with a net hiring outlook of 26% for the first quarter.

Are these new jobs ones that should prompt Americans to consider moving? Possibly, says Joerres, though much of the demand gets filled by people from neighboring countries. Outfits like Manpower, which has offices in 82 countries, and the plethora of online job listings make the international job market ever more transparent.

While many of the openings are for low-paying jobs, there are also plenty of opportunities for highly qualified professionals, especially in fields like geoengineering and information systems, Joerres says. Oil and gas engineers are in high demand, for instance. That’s a minority of the workers who relocate internationally for jobs, he adds, but it’s a minority that’s growing: “It’s still on the margin, but the margin has gotten bigger.”

The countries rounding out the list include Peru, Costa Rica and Argentina as well as Australia and Hong Kong.

How does the U.S. rate? Better than you might expect. It has a 9% net hiring outlook.