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China's growing retail sector could provide more jobs for the glut of college graduates, as the industry is in dire need of better-educated managers, according to an industry report.

More than 70 percent of multinational department stores, supermarkets and sales outlets, such as Prada and Gucci, are seeking shop managers and more than 60 percent almost always have openings for salespeople, says the report by the Commerce Economy Association of China.

China's retail industry currently employs 80 million to 130 million people, association vice secretary-general Hong Tao told a forum on the development of retail sales.

"The number varies because almost 20 percent of salespeople keep changing jobs," he said.

As a result, the majority of retail sales people lack the experience and expertise to qualify as managers, said Hong.

Poor education is another obstacle for most salespeople in promotion to management because only three percent have a college education.

The lack of professionals threatens to hinder the development of domestic retail outlets in the heated competition with international rivals, according to a study by China Chain Store and Franchise Association.

Shanghai Bailian Group planned to open 1,000 new stores this year, but its management feared they would be unable to find enough good store managers, said association vice president An Huimin.

Growing demand had driven up salaries, a major draw for new graduates who outnumbered the jobs on offer, said An.

A college graduate with three to four years sales experience could earn up to 100,000 yuan (US$12,820) a year, five times the average income for a graduate starting as a junior office worker, said a senior executive of Wumart Group, one of Beijing's largest retail chains.

Almost five million college students will graduate this year and the Ministry of Labor and Social Security has warned 1.4 million of them will be unable to find a job matching their qualifications.

Many students have been forced to lower their job expectations and hundreds are taking temporary jobs during the winter vacation as babysitters or housekeepers -- jobs that were commonly considered beneath college graduates.

"They might as well start a career in the retail sector," said An. "Though few Chinese schools actually teach retail studies, I believe students can learn quickly on the job to stand out as good managers within a few years."

An said his organization was working to provide adequate training to salespeople and job hunters.

The association has also mapped out qualifications for retail sales managers. "If the national standardization committee adopts the qualifications, they will serve as a guide to the ideal store manager and will help build a professional class of salespeople."

China's retail sales topped 7.5 trillion yuan (US$960 billion) last year, up at least 10 percent from 2005.

(Xinhua News Agency January 27, 2007)