The latest report by major job service provider Manpower indicates that hiring prospects in China may continue to drop by a "considerable 10 percent" in the second quarter as the global financial crisis began to affect the real economy.

The report, based on a survey which covered 4,149 employers across the country, showed that the eastern job markets were experiencing the weakest hiring climate in four years.

"However, workforce contractions are of limited use as an effective means of controlling HR costs over the long term. Companies should explore adjusting their workforce utilization and maximize the potential of their current workforce to succeed in an uncertain market," Lucille Wu, managing director of Manpower Greater China, was quoted by Tuesday's China Daily as saying.

Employers in Shanghai and Dalian also reported a negative "net employment outlook" for the first time, both standing at minus 4 percent. The outlook stood at the weakest levels since the regional analysis began in the first quarter of 2007.

"More importantly, enterprises should consider adopting a more flexible workforce policy in order to benefit from changing labor demand, thus ultimately controlling the HR cost in the long term," Wu said.

However, there are hopeful signs of recruitment shown in the central and western regions, with "positive" employment outlook levels seen in cities such as Chengdu, Xi'an and Wuhan.

"With the government's effort to boost the development of the central and western regions and with many domestic and foreign companies now expanding their presence in the areas to take advantage of competitive labor costs, job seekers may want to consider relocating to those cities for more career development opportunities," Chen Chuangfu, vice-president of Dhihezi University in Xinjiang, said.

(Xinhua News Agency March 17, 2009)