China white-collar average salary went up in the third quarter of 2017

Bharath Kumar — Mon, 23 Oct 2017 07:54:55 +0000

Zhaopin Limited, a leading career platform in China focused on connecting users with relevant job opportunities through their career lifecycle, released its 2017 third-quarter report on China labor market supply and demand for white-collar workers. While the competition for jobs continued to ease in the third quarter, the average monthly salary for white-collar workers went up to reach RMB7,599, representing a 3% increase over the previous quarter.

Third-Quarter of 2017 China White-Collar Labor Market Highlights:

The average monthly salary reached RMB7,599 in the third quarter of 2017, up 3% over the second quarter.
The overall economy was picking up in the third quarter, and emerging first-tier cities were offering higher salaries and subsidies to attract more talent, which pushed up the average monthly salary for white-collar workers in China.
Beijing continued to be the city with the highest pay in the third quarter of 2017, with an average monthly salary of RMB9,900, up from RMB9,791 in the second quarter.
Competition for jobs among white-collar workers continued to ease in the third quarter of 2017, with an average of 30.4 applications per job vacancy, down from 35.8 applications in the second quarter.
Online games returned to the top as the most competitive sector for job seekers in the third quarter of 2017, with 50.0 applications per vacancy.
The most competitive occupation in the third quarter of 2017 was software/internet development/system integration with 101.2 applications per vacancy.

Salaries going up slightly

Based on online job postings in 37 key cities in China compiled by Zhaopin, the average monthly salary in the third quarter of 2017 was RMB7,599, up 3% over the second quarter. The overall economy was picking up in the third quarter, and emerging first-tier cities were offering higher salaries and subsidies to attract more talent, which pushed up the average monthly salary for white-collar workers in China.

Average monthly salary for white-collar workers
Quarter	Average salary (RMB)	Change over previous quarter
Q3 2016	7,531	4.1%
Q4 2016	7,606	1.0%
Q1 2017	7,665	0.8%
Q2 2017	7,376	– 3.8%
Q3 2017	7,599	3.0%

Among job postings in the third quarter of 2017, 32.6% of positions offered monthly salaries between RMB4,001 and 6,000, and 27.6% offered monthly salaries of more than RMB8,000. About 21% of positions offered monthly salaries between RMB6,001 and 8,000.

Breakdown of positions by monthly salaries in the third quarter of 2017
Salary (RMB)	Percentage of positions
Over 8,000	27.6 %
6,001 to 8,000	21.0%
4,001 to 6,000	32.6%
2,001 to 4,000	18.0%
Below 2,000	0.8%

Beijing continued to be the city with the highest pay in the third quarter of 2017, with an average monthly salary of RMB9,900, up from RMB9,791 in the second quarter. Ningbo climbed to 5^th in the ranking with an average monthly salary of RMB7,843 in the third quarter, and Haikou jumped to 7^th from 13^th with an average monthly salary of RMB7,722. Both cities were making efforts to lure talents with attractive packages.

Average monthly salary for cities in the third quarter of 2017
Ranking	City	Average monthly salary (RMB)	Ranking	City	Average monthly salary (RMB)
1	Beijing	9,900	20	Wuxi	7,003
2	Shanghai	9,365	21	Wuhan	6,992
3	Shenzhen	8,666	22	Chengdu	6,910
4	Hangzhou	8,301	23	Nanchang	6,829
5	Ningbo	7,843	24	Changsha	6,822
6	Guangzhou	7,776	25	Jinan	6,783
7	Haikou	7,722	26	Hefei	6,762
8	Dongguan	7,692	27	Tianjin	6,760
9	Foshan	7,596	28	Qingdao	6,665
10	Urumqi	7,595	29	Dalian	6,598
11	Nanning	7,469	30	Zhengzhou	6,578
12	Nanjing	7,441	31	Yantai	6,437
13	Suzhou	7,346	32	Shijiazhuang	6,423
14	Xiamen	7,335	33	Taiyuan	6,284
15	Guiyang	7,324	34	Xi’an	6,201
16	Kunming	7,196	35	Changchun	6,086
17	Chongqing	7,183	36	Shenyang	6,028
18	Lanzhou	7,159	37	Harbin	6,004
19	Fuzhou	7,015

The best-paying sector in the third quarter of 2017 continued to be professional services/consulting (finance and accounting, legal and Human Resources, etc.) with an average monthly salary of RMB10,187, followed by RMB9,703 for funds/securities/futures/investment and RMB9,336 for academic/R&D.

Top 10 highest paid sectors in the third quarter of 2017
Sector	Average monthly salary (RMB)
Professional service/consulting (finance and accounting, legal and HR, etc.)	10,187
Funds/securities/futures/investment	9,703
Academic/R&D	9,336
Energy/mineral/mining/smelting	9,233
Intermediary service	9,225
Cross-industry operation	9,191
Trust/warrant/auction/pawn	8,657
Real estate/construction/building materials/engineering	8,540
Banking	8,482
Traffic/transportation	8,373

The top three occupations with the highest monthly salaries in the third quarter of 2017 were senior management (RMB20,019), IT management/project coordination (RMB14,127) and securities/futures/investment management/service (RMB11,690).

Top 10 highest paid occupations in the third quarter of 2017
Occupation	Average monthly salary (RMB)
Senior management	20,019
IT management/project coordination	14,127
Securities/futures/investment management/service	11,690
Sales management	10,961
Real estate development/broker/agency	10,410
Software/internet development/system integration	9,828
Project management/project coordination	9,711
Hardware development	9,386
Banking	9,313
law/legal/compliance	9,252

Wholly foreign-owned enterprises offered the highest average monthly salary of RMB8,286 in the third quarter, followed by RMB8,163 for joint ventures and RMB8,080 for public companies.

Average monthly salaries from different types of companies in the third quarter of 2017
Type of Company	Average monthly salary (RMB)
Wholly foreign-owned enterprises	8,286
Joint ventures	8,163
Public companies	8,080
Public institutions	8,037
State-owned enterprises	7,968
Private companies	7,357

Larger companies offered higher salaries in the third quarter. Small and micro-sized companies were not competitive to attract talent.

Average monthly salaries for companies of different sizes in the third quarter of 2017
Size of company by employee numbers	Average monthly salary (RMB)
Below 20	6,977
20-99	7,352
100-499	7,445
500-999	7,776
1,000-9,999	8,227
Above 10,000	8,189

Job market competition easing for white-collar workers

Zhaopin publishes the quarterly competitive index for the labor market based on data collected from its online platform. The competitive index is calculated based on the number of resume applications divided by the number of job vacancies. For the third quarter of 2017, the competitive index was 30.4, which means there were an average of 30.4 applications per job vacancy, down from 35.8 in the second quarter of 2017.

Compared with the previous four quarters, the job market competition for white-collar workers continued to ease in the third quarter of 2017. Autumn is traditionally a slow season for job hopping, and white-collar workers were more cautious in seeking new opportunities.

Competitive index
Quarter	Competitive index
Q3 2016	37.8
Q4 2016	40.3
Q1 2017	44.6
Q2 2017	35.8
Q3 2017	30.4

(Competitive index = number of applications/number of job vacancies)

Beijing was by far the most competitive city for white-collar workers, with a competitive index of 82.4 in the third quarter of 2017, down from 89.9 in the second quarter of 2017.

Competitive index for cities in the third quarter of 2017
Ranking	City	Index	Ranking	City	Index
1	Beijing	82.4	20	Wuhan	19.1
2	Shenzhen	39.7	21	Qingdao	19.0
3	Shenyang	39.3	22	Guiyang	17.9
4	Chengdu	37.8	23	Zhengzhou	17.1
5	Shanghai	37.4	24	Kunming	17.1
6	Tianjin	31.5	25	Shijiazhuang	16.4
7	Dalian	30.8	26	Jinan	16.0
8	Xi’an	27.7	27	Urumqi	14.0
9	Guangzhou	26.3	28	Yantai	13.6
10	Changchun	24.7	29	Wuxi	13.5
11	Harbin	23.7	30	Hefei	12.6
12	Changsha	20.9	31	Nanchang	11.3
13	Nanjing	20.8	32	Nanning	11.2
14	Chongqing	20.7	33	Fuzhou	10.0
15	Suzhou	20.3	34	Dongguan	9.6
16	Lanzhou	20.3	35	Xiamen	9.4
17	Taiyuan	20.2	36	Foshan	9.1
18	Haikou	19.7	37	Ningbo	7.7
19	Hangzhou	19.2
Competitive index = number of applications/number of job vacancies

First-tier cities (Beijing, Shanghai, Shenzhen and Guangzhou) continued to be the top four cities with the highest job demand in the third quarter of 2017. Emerging first-tier cities, including Chengdu, Hangzhou, Nanjing and Xi’an, were also among the top ten cities with the highest job demand.

Top ten cities with the highest job demand in the third quarter of 2017
Ranking	City
1	Beijing
2	Shanghai
3	Shenzhen
4	Guangzhou
5	Zhengzhou
6	Chengdu
7	Hangzhou
8	Xi’an
9	Nanjing
10	Wuhan

Eight of the top ten cities with most job applications in the third quarter of 2017 were also cities with the highest job demand, indicating that these cities with high job demand were also attracting job seekers.

Top ten cities with most job applications in the third quarter of 2017
Ranking	City
1	Beijing
2	Shanghai
3	Shenzhen
4	Chengdu
5	Guangzhou
6	Tianjin
7	Xi’an
8	Zhengzhou
9	Hangzhou
10	Shenyang

In terms of employer size, companies with 1,000 to 9,999 employees were the most competitive for job seekers, with an index of 39.7, followed by 34.1 for companies over 10,000 employees. The competition for positions in small and micro-sized companies was relatively low due to low brand recognition.

Competitve index for different size companies in the third quarter of 2017
Size of Company by employee numbers	Index
Below 20	20.2
20-99	26.2
100-499	31.1
500-999	32.8
1,000-9,999	39.7
Over 10,000	34.1

Supply and demand by sector

In the third quarter of 2017, the internet/e-commerce sector continued to top the list with the most job vacancies, followed by real estate/construction/building materials/engineering and education/training/college sectors.

Top ten sectors with the highest job demand in the third quarter of 2017
Ranking	Sector
1	Internet/e-commerce
2	Real estate/construction/building materials/engineering
3	Education/training/college
4	Funds/securities/futures/investment
5	Computer software
6	Professional service/consulting (finance and accounting, legal and HR, etc.)
7	Trade/export and import
8	FMCG (food, drinks, alcohol and tobacco, and chemicals for daily use)
9	IT services (system/data/maintenance)
10	Home furnishing/interior design/decoration

Online games returned to the top as the most competitive sector for job seekers in the third quarter of 2017, with 50 applications per vacancy. The competitive index for most sectors declined in the third quarter of 2017 from the previous quarter.

Top ten most competitive sectors in the third quarter of 2017
Ranking	Sector	Index	Ranking in previous quarter
1	Online games	50.0	2
2	IT services (system/data/maintenance)	42.8	4
3	Internet/e-commerce	41.5	8
4	Real estate/construction/building materials/engineering	41.1	5
5	Computer software	39.6	7
6	Telecom/carrier operators/value-added service	39.2	1
7	Cross-industry operation	38.7	6
8	Aviation/aerospace research and manufacturing	35.0	3
9	Funds/securities/futures/investment	34.8	16
10	Media/publishing/movie and TV/culture communications	34.8	12

Insurance continued to be the least competitive sector in the third quarter of 2017, with 12.5 applications per vacancy, followed by 15.6 for intermediary service and 17.0 for office supplies and equipment.

Least competitive sectors in the third quarter of 2017
Sector	Index
Insurance	12.5
Intermediary service	15.6
Office supplies and equipment	17.0
Printing/packaging/papermaking	17.6
Outsourcing service	19.2
Home furnishing/interior design/decoration	20.5
Processing and manufacturing (raw material processing/mould)	20.6
Gifts/toys/arts and crafts/collection/luxuries	22.6
Trust/warrant/auction/pawn	22.7
Banking	22.8

The sectors with the most job applications in the third quarter of 2017 included internet/e-commerce, computer software and real estate/construction/building materials/engineering.

Top ten sectors with the most job applications in the third quarter of 2017
Ranking	Sector
1	Internet/e-commerce
2	Computer software
3	Real estate/construction/building materials/engineering
4	Funds/securities/futures/investment
5	Education/training/college
6	IT services (system/data/maintenance)
7	Professional service/consulting (finance and accounting, legal and HR, etc.)
8	FMCG (food, drinks, alcohol and tobacco, and chemicals for daily use)
9	Media/publishing/movie and TV/culture communications
10	Trade/export and import

Supply and demand by occupation

The top occupations with the most vacancies for white collar workers in the third quarter of 2017 were almost the same as in the second quarter of 2017, including sales, administration/logistics/secretary, and software/internet development/system integration.

Top ten occupations with the highest job demand in the third quarter of 2017
Ranking	Occupation
1	Sales
2	Administration/logistics/secretary
3	Software/internet development/system integration
4	Sales management
5	Education/training
6	Finance/auditing/tax
7	Customer service/pre-sales and after-sales support
8	Human resources
9	Civil engineering/construction/decoration/municipal engineering
10	Internet products/operation management

The most competitive occupation in the third quarter of 2017 was software/internet development/system integration with 101.2 applications per vacancy, followed by 87.1 for IT quality management/testing/configuration management, and 59.3 for senior management.

Top 10 most competitive occupations in the third quarter of 2017
Ranking	Occupation	Index	Ranking in previous quarter
1	Software/internet development/system integration	101.2	1
2	IT quality management/testing/configuration management	87.1	2
3	Senior management	59.3	5
4	Transportation services	56.8	4
5	Finance/auditing/tax	50.1	3
6	Human resources	47.0	6
7	Administration/logistics/secretary	41.5	8
8	Civil engineering/construction/decoration/municipal engineering	38.5	7
9	Purchasing/trade	36.1	10
10	IT operation and maintenance/technical support	36.0	12

The least competitive occupations in the third quarter of 2017 were healthcare/beauty/hairdressing/bodybuilding with 9.7 applications per vacancy, followed by 10.3 for community/residency/housekeeping, and 10.5 for insurance.

Least competitive occupations in the third quarter of 2017
Occupation	Index
Healthcare/beauty/hairdressing/bodybuilding	9.7
Community/residency/housekeeping	10.3
Insurance	10.5
Mechanic/operator	11.2
Sales	11.7
Cooking/catering/food R&D	11.7
Farming/forestry/animal husbandry/fishery	12.3
Trust/warrant/auction/pawn	14.8
Hospital/medical care/nursing	15.5
Customer service/pre-sales and after-sales support	16.0

The top ten occupations with the most job applications in the third quarter of 2017 were almost the same as in the second quarter of 2017.

Top ten occupations with the most job applications in the third quarter of 2017
Ranking	Occupation
1	Software/internet development/system integration
2	Finance/auditing/tax
3	Administration/logistics/secretary
4	Human resources
5	Civil engineering/construction/decoration/municipal engineering
6	Sales
7	Sales management
8	Internet product/operation management
9	Art/design
10	Marketing

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China white-collar average salary went up in the third quarter of 2017