Multinational companies' (MNC)'s hiring expectations have largely declined in the second quarter, after sustaining a high level for a long period, but are rising in some sectors, a recently released human resources (HR) report said.
However, most respondents of globally leading recruitment and HR management firm Hudson's survey remained optimistic, saying they considered an imminent recession in China's employment market unlikely.
The global Hudson Hiring and HR Trends Quarterly Report surveyed 718 executives of MNCs in China from sectors including banking and financial, IT and technology (IT&T), manufacturing, consumer, and media, public relations and advertising.
It said overall hiring expectations in the emerging market are declining, with 52 percent of respondents expecting to increase headcount, compared with 61 percent in both the previous quarter and the corresponding period of 2007.
The report also found 14 percent of respondents in China expected the country would face a recession in the next six months - fewer than in any other Asia market surveyed. In Japan, for example, 41 percent of respondents believed a recession was imminent.
Of those anticipating a recession in China, 73 percent believed it would impact their industries.
At 57 percent, the banking and financial services sector reported the highest hiring expectations - although 12 percentage points fewer than in the first quarter.
Some banks are more cautious in their hiring projections, particularly in the consumer-banking sector, where they haven't yet obtained all required licenses, Hudson's Shanghai General Manager Angie Eagan said.
Employment expectations are rising in the media, public relations and advertising industries, where 55 percent of respondents forecasted headcount growth, compared with 47 percent in the first quarter. Many agencies started hiring after Chinese New Year, when clients had finalized their marketing budgets.
The IT&T segment also reported rising expectations, with 55 percent of respondents saying they will hire more staff - compared with 50 percent in the first three months of 2008. The sector remains buoyant as companies continue localizing IT operations.
Manufacturing companies' expectations increased slightly, with 53 percent planning to increase hiring, compared with 51 percent in the first quarter. Construction of MNCs' new manufacturing facilities in China is mostly driving demand for workers.
Expectations underwent the steepest fall in the consumer industry, plummeting to 45 percent from 72 percent in the first quarter.
Hudson said many companies in the sector have been expanding headcount for a long time and have by now filled most positions, ushering the industry into a consolidation phase.
