Zhaopin: Emerging First-tier Cities More Attractive to Job Seekers in China

Zhaopin: Emerging First-tier Cities More Attractive to Job Seekers in China

First-tier cities become a key source of talent outflow

BEIJING, May 4, 2018 /PRNewswire/ -- Zhaopin Limited ("Zhaopin" or the "Company"), a leading career platform in China focused on matching talent with skills and opportunities through their career lifecycle, released its Spring 2018 China Talent Flow Report. Based on Zhaopin's online recruitment data, the report identified major trends in the flow of talent among cities, sectors and occupations.

Spring is the most active season in China's labor market, when both job seekers and job vacancies surge. Zhaopin analyzed the data from its online recruitment platform and identified talent flow trends in China, which are a valuable reference for job seekers, recruiters and government policy makers.

Spring 2018 China Talent Flow Report highlights:

    --  Emerging first-tier cities were more attractive to job seekers in
        third-tier cities and below. About 23.4% of job seekers in third-tier
        cities favored jobs in emerging first-tier cities, while the percentage
        was 33.6% for job seekers in fourth-tier cities, and 38.8% in fifth-tier
        cities.
    --  While first-tier cities continued to attract talent from neighboring
        areas, they were becoming a key source of talent outflow to other parts
        of the country.
    --  There was an outflow of professionals from real estate to other sectors.
        All of the top 10 sectors with the most job vacancies in the first
        quarter of 2018 drew from the real estate sector as a major source of
        talent.
    --  Talent from the internet/e-commerce sector was welcomed by other sectors
        as the internet transforms traditional industries.
    --  While it is relatively easy to move across sectors, it is more difficult
        to change occupations for job seekers, as occupations have more barriers
        to entry in terms of required skills and experience.
    --  Male job seekers dominated positions with monthly salaries of RMB6,000
        and above. More female job seekers applied for positions with relatively
        low pay.
    --  Employees from private companies were a major source of talent for other
        types of companies.

Bigger cities more attractive to talent than smaller cities

Bigger cities were more attractive to job seekers than smaller cities, Zhaopin found. The ability to attract talent decreases as city-size declines. About 87.6% of job seekers in first-tier cities preferred positions in first-tier cities, while only 19% of job seekers in fifth-tier cities wanted to stay in their cities.

Emerging first-tier cities were more attractive to job seekers in third-tier cities and below. About 23.4% of job seekers in third-tier cities favored jobs in emerging first-tier cities, while the percentage was 33.6% for job seekers in fourth-tier cities, and 38.8% in fifth-tier cities.

While first-tier cities continued to attract talent from neighboring areas, they were becoming a key source of talent outflow to other parts of the country. As a major talent hub, Beijing saw its talent outflowing to north, northeast, northwest and even southwest of China.


                                                                Breakdown of job seekers by cities
                                                                ----------------------------------

    City                       From first-       From                            From                      From third-         From fourth-         From fifth-
                               tier cities                                       second-tier               tier cities         tier cities          tier cities
                                                 emerging first                  cities
                                                 -tier cities
    ---                                          ------------

    First-tier cities                      87.6%                          7.1%                      3.3%                1.3%                 0.6%                0.1%
    -----------------                       ----                            ---                        ---                  ---                   ---                  ---

    Emerging first-tier cities              7.8%                         87.5%                      2.1%                1.3%                 1.0%                0.3%
    --------------------------               ---                           ----                        ---                  ---                   ---                  ---

    Second-tier cities                     10.8%                          8.4%                     77.6%                1.8%                 0.9%                0.5%
    ------------------                      ----                            ---                       ----                  ---                   ---                  ---

    Third-tier cities                      21.8%                         23.4%                      7.6%               45.6%                 1.1%                0.5%
    -----------------                       ----                           ----                        ---                 ----                   ---                  ---

    Fourth-tier cities                     20.1%                         33.6%                     11.6%                2.3%                31.8%                0.6%
    ------------------                      ----                           ----                       ----                  ---                  ----                  ---

    Fifth-tier cities                      18.8%                         38.8%                     16.9%                5.0%                 1.4%               19.0%
    -----------------                       ----                           ----                       ----                  ---                   ---                 ----

Talent moving across sectors

There was an outflow of professionals from real estate to other sectors. All of the top 10 sectors with the most job vacancies in the first quarter of 2018 drew from the real estate sector as a major source of talent.

Talent from the internet/e-commerce sector was welcomed by other sectors as the internet transforms traditional industries.


                                                                             Talent source for top ten sectors with most job demand in first quarter 2018
                                                                             ----------------------------------------------------------------------------

    Job        Sector              Top 1 talent                  Top 2 talent source                                 Top 3 talent source                       Top 4 talent source            Top 5 talent source
    demand                         source
    ranking
    -------

             1 Internet/e-         Internet/e-commerce           Real                                                Computer software                         Education/training/co          Funds/securities/futur
               commerce                                          estate/construction/b                                                                         llege                          es/investment
                                                                 uilding
                                                                 materials/engineerin
                                                                 g                                                                                                                                                     3.9%
                                                           17.7%
                                                                                                                                                          5.8%
                                                                                                              6.8%                                                                       4.5%

    ---

             2 Real estate         Real estate                   Home                                                Internet/e-commerce                       Processing and                 Professional
               /construction/      /construction/buildin         furnishing/interior                                                                           manufacturing (raw             service/consulting
               building            g materials/engineerin        design/decoration                                                                             material processing/mold)      (finance and
               materials/en        g                                                                                                                                                          accounting, legal and
               gineering                                                                                                                                                                      HR, etc.)
                                                                                                              2.9%                                        2.5%                           2.1%
                                                           55.0%
                                                                                                                                                                                                                       2.0%
    ---                                                                                                                                                                                                                 ---

             3 Education/tra       Education/training/c          Internet/e-commerce                                 Real                                      Hotel/catering                 Media/publishing/film
               ining/college       ollege                                                                            estate/construction/bu                                                   and television/cultural
                                                                                                                     ilding                                                                   communication
                                                                                                                     materials/engineering

                                                                                                              7.9%
                                                           24.9%                                                                                          7.0%                           3.2%                          3.0%

    ---

             4 Computer            Computer software             Internet/e-commerce                                 IT services                               Real                           Electronics/semicond
               software                                                                                              (system/data/mainten                      estate/construction/b          uctor/integrated circuit
                                                                                                                     ance)                                     uilding
                                                                                                                                                               materials/engineerin
                                                                                                                                                               g                                                       3.3%
                                                                                                                                                          9.9%
                                                           19.0%                                             16.3%

                                                                                                                                                                                         5.4%

    ---

             5 Funds/securi        Funds/securities/futu         Real                                                Internet/e-commerce                       Professional                   Banking
               ties/futures/in     res/investment                estate/construction/b                                                                         service/consulting
               vestment                                          uilding                                                                                       (finance and
                                                                 materials/engineerin                                                                          accounting, legal
                                                                 g                                                                                             and HR, etc.)
                                                                                                                                                          8.2%
                                                           18.9%                                                                                                                                                       4.8%
                                                                                                              9.3%                                                                       5.0%

    ---

             6 Professional        Real                          Professional                                        Internet/e-commerce                       Education/training/co          Funds/securities/futur
               service/cons        estate/construction/b         service/consulting                                                                            llege                          es/investment
               ulting              uilding                       (finance and
               (finance and        materials/engineerin          accounting, legal
               accounting,         g                             and HR, etc.)
               legal and HR, etc.)
                                                                                                                                                          7.1%
                                                           12.1%                                              8.1%                                                                       5.3%                          4.8%

    ---

             7 IT services         Internet/e-commerce           Computer software                                   IT services                               Real                           Communications/telec
               (system/data                                                                                          (system/data/mainten                      estate/construction/b          ommunications/netwo
               /maintenanc                                                                                           ance)                                     uilding                        rk equipment
               e)                                                                                                                                              materials/engineerin
                                                                                                                                                               g
                                                                                                                                                          8.5%                                                         4.0%
                                                           14.5%                                             11.6%
                                                                                                                                                                                         7.2%
    ---                                                                                                                                                                                   ---

             8 Trade/export        Trade/export and import       Real                                                Internet/e-commerce                       Processing and                 FMCG (food, drinks,
               and import                                        estate/construction/b                                                                         manufacturing (raw             alcohol and tobacco,
                                                                 uilding                                                                                       material                       and chemicals for
                                                                 materials/engineerin                                                                          processing/mold)               daily use)
                                                                 g
                                                            9.7%
                                                                                                                                                          7.4%                           5.2%                          4.3%
                                                                                                              7.9%

    ---

             9 Medicine/biol       Medicine/biological           Real                                                Medical                                   FMCG (food, drinks,            Medical
               ogical              engineering                   estate/construction/b                               care/nursing/beauty/h                     alcohol and tobacco,           equipment/devices
               engineering                                       uilding                                             ealthcare                                 and chemicals for
                                                                 materials/engineerin                                                                          daily use)
                                                                 g
                                                                                                                                                          5.9%
                                                           24.2%                                                                                                                         5.9%
                                                                                                              6.2%                                                                                                     4.6%

    ---

            10 FMCG (food,         FMCG (food, drinks,           Internet/e-commerce                                 Real                                      Retail/wholesale               Processing and
               drinks,             alcohol and tobacco,                                                              estate/construction/bu                                                   manufacturing (raw
               alcohol and         and chemicals for                                                                 ilding                                                                   material
               tobacco, and        daily use)                                                                        materials/engineerin                                                     processing/mold)
               chemicals for                                                                                         g
               daily use)
                                                           30.6%                                              6.3%                                                                       5.3%                          3.2%
                                                                                                                                                          5.5%

    ---

While it was relatively easy to move across sectors, it was more difficult to change occupations for job seekers, Zhaopin found. Occupations have more barriers to entry in terms of required skills and experience.

More female seeking low-pay jobs

Female job seekers were more interested in sectors such as education/training/college, medical care/nursing/beauty/healthcare/health services, and government/non-profit organizations.


                                        Top 10 sectors with most female job seekers in spring 2018
                                        ----------------------------------------------------------

    Ranking Sector                                                                                 Female       Male
    ------- ------                                                                                 ------       ----

    1       Education/training/college                                                                    65.0%      35.0%
    ---     --------------------------                                                                     ----        ----

    2       Medical                                                                                       63.9%      36.1%
            care/nursing/beauty/healthcare/health
            services
    ---     --------

    3       Government/non-profit organizations                                                           57.9%      42.1%
    ---     -----------------------------------                                                            ----        ----

    4       Professional                                                                                  57.8%      42.2%

            Services/consulting (finance and
            accounting/legal/HR)
    ---     --------------------

    5       Trade/export and import                                                                       55.8%      44.2%
    ---     -----------------------                                                                        ----        ----

    6       Tourism/vacation                                                                              55.7%      44.3%
    ---     ----------------                                                                               ----        ----

    7       Advertising/exhibition/public relations                                                       55.5%      44.5%
    ---     ---------------------------------------                                                        ----        ----

    8       Gifts/toys/arts & crafts/collectibles/luxury                                                  55.0%      45.0%
            goods
    ---     -----

    9       Outsourcing service                                                                           54.8%      45.2%
    ---     -------------------                                                                            ----        ----

    10      Media/publishing/film and television/cultural                                                 54.8%      45.2%
            communication
    ---     -------------

For occupations, female job seekers preferred finance/auditing/tax, hospital/medical care/nursing, and healthcare/beauty/hairdressing/bodybuilding.


                                       Top 10 occupations with most female job seekers in spring 2018
                                       --------------------------------------------------------------

    Ranking Sector                                                                                    Female       Male
    ------- ------                                                                                    ------       ----

    1       Finance/auditing/tax                                                                             84.4%      15.6%
    ---     --------------------                                                                              ----        ----

    2       Hospital/medical care/nursing                                                                    79.0%      21.0%
    ---     -----------------------------                                                                     ----        ----

    3       Healthcare/beauty/hairdressing/bodybuilding                                                      75.7%      24.3%
    ---     -------------------------------------------                                                       ----        ----

    4       Administration/logistics/secretary                                                               75.5%      24.5%
    ---     ----------------------------------                                                                ----        ----

    5       Human resources                                                                                  73.4%      26.6%
    ---     ---------------                                                                                   ----        ----

    6       Education/training                                                                               68.1%      31.9%
    ---     ------------------                                                                                ----        ----

    7       Sales/business administration                                                                    67.6%      32.4%
    ---     -----------------------------                                                                     ----        ----

    8       Translation (oral and written)                                                                   67.4%      32.6%
    ---     -----------------------------                                                                     ----        ----

    9       Tourism/vacation/entry and exit services                                                         63.9%      36.1%
    ---     ----------------------------------------                                                          ----        ----

    10      Part-time job/temporary                                                                          62.5%      37.5%
    ---     -----------------------                                                                           ----        ----

In terms of salaries, male job seekers dominated positions with monthly salaries of RMB6,000 and above. More female job seekers applied for positions with relatively low pay.


    Breakdown of positions by monthly salaries in spring 2018
    ---------------------------------------------------------

    Salary
     (RMB)                  Male applicants                 Female applicants
    ------                  ---------------                 -----------------

    Above
     50,000                                         82.9%                     17.1%
    -------                                          ----                       ----

    35,001 to
     50,000                                         80.7%                     19.3%
    ---------                                        ----                       ----

    25,001 to
     35,000                                         77.0%                     23.0%
    ---------                                        ----                       ----

    15,001 to
     25,000                                         75.2%                     24.8%
    ---------                                        ----                       ----

    10,001 to
     15,000                                         71.9%                     28.1%
    ---------                                        ----                       ----

    8,001 to
     10,000                                         67.4%                     32.6%
    --------                                         ----                       ----

    6,001 to
     8,000                                          61.0%                     39.0%
    --------                                         ----                       ----

    4,001 to
     6,000                                          48.9%                     51.1%
    --------                                         ----                       ----

    2,001 to
     4,000                                          35.8%                     64.2%
    --------                                         ----                       ----

    Below
     2,000                                          53.4%                     46.6%
    ------                                           ----                       ----

Most job seekers looking for better pay

The majority of job seekers were applying for positions with better pay than their current level. However, more than 20% of job seekers, who currently made RMB50,000 or more per month, were applying for position with salary between RMB10,001 to RMB15,000. Most of them had been working for startups, which had inflated salaries to attract talent. These professionals have had to reset their expectations and be more reasonable with salary expectations.


                                                                                              Breakdown of positions by salaries in spring 2018
                                                                                              -------------------------------------------------

                                                                   Current salaries of job seekers (RMB)
              ------------------------------------

    Salaries  Below                 2,001 to              4,001 to                 6,001 to                 8,001 to                  10,001 to         15,001 to         25,001 to         35,001 to        Above
    applied                 2,000                   4,000                    6,000                     8,000                     10,000             15,000             25,000             35,000            50,000       50,000
    -------                 -----                   -----                    -----                     -----                     ------             ------             ------             ------            ------       ------

    Below                    1.7%                   0.7%                    0.5%                     0.5%                      0.5%              0.6%              0.7%              0.3%              0.5%         0.8%
    2,000
    -----

    2,001 to                21.7%                  23.6%                   11.0%                     4.2%                      2.4%              1.1%              0.8%              0.3%              0.9%         1.6%
    4,000
    -----

    4,001 to                38.5%                  42.7%                   37.3%                    21.7%                     12.3%              6.3%              3.4%              1.6%              4.1%         9.4%
    6,000
    -----

    6,001 to                18.1%                  19.0%                   27.1%                    28.4%                     21.1%             12.2%              6.1%              3.1%              3.7%        13.3%
    8,000
    -----

    8,001 to                 8.6%                   7.2%                   12.3%                    20.2%                     21.4%             16.1%              8.7%              4.7%              4.8%         9.2%
    10,000
    ------

    10,001 to                7.3%                   5.2%                    9.1%                    18.6%                     29.4%             34.6%             26.1%             16.5%             13.9%        20.4%
    15,000
    ------

    15,001 to                2.4%                   1.2%                    2.1%                     4.8%                      9.7%             20.4%             27.1%             23.7%             17.6%        11.0%
    25,000
    ------

    25,001 to                1.1%                   0.3%                    0.4%                     1.0%                      2.3%              6.2%             16.7%             24.6%             17.6%        11.8%
    35,000
    ------

    35,001 to                0.4%                   0.1%                    0.1%                     0.3%                      0.7%              1.8%              7.4%             17.1%             23.1%        11.8%
    50,000
    ------

    Above                    0.2%                   0.1%                    0.1%                     0.2%                      0.3%              0.7%              3.1%              8.2%             13.7%        10.8%
    50,000
    ------

Private companies are a key force in China's labor market, and employees from private companies were a major source of talent for other type of companies.


                                                          Breakdown of job seekers by type of companies
                                                          ---------------------------------------------

    Company                 From state-             From  joint                      From private               From public        From public         From
                            owned enterprises       ventures                         companies                  companies          institutions        wholly
                                                                                                                                                       foreign-
                                                                                                                                                       owned
                                                                                                                                                       enterprises
    ---                                                                                                                                                -----------

    State-owned enterprises                   22.1%                           5.2%                      55.8%               8.0%                2.5%                6.4%
    -----------------------                    ----                             ---                        ----                 ---                  ---                  ---

    Joint ventures                            12.0%                           7.1%                      61.6%               7.7%                1.6%               10.0%
    --------------                             ----                             ---                        ----                 ---                  ---                 ----

    Private companies                         11.1%                           5.9%                      67.6%               7.2%                1.5%                6.7%
    -----------------                          ----                             ---                        ----                 ---                  ---                  ---

    Public companies                          14.0%                           5.7%                      62.5%               8.8%                1.7%                7.4%
    ----------------                           ----                             ---                        ----                 ---                  ---                  ---

    Public institutions                       22.4%                           5.6%                      50.8%               9.0%                5.8%                6.4%
    -------------------                        ----                             ---                        ----                 ---                  ---                  ---

    Wholly foreign-owned                      11.9%                           6.9%                      56.0%               8.3%                1.5%               15.4%
    enterprises
    -----------

For more information, please contact:

Zhaopin Limited
Ms. Serena Sun
roujia.sun@zhaopin.com.cn

ICR Beijing
Mr. Edmond Lococo
Phone: +86 10 6583-7510
Edmond.Lococo@icrinc.com

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