China labor market keeping upward trend in Q4 2016
The labor market in China maintained its upward trend as the CIER index reached its highest level since the first quarter of 2015, providing a favorable environment for job seekers.
Based on data from Zhaopin's online platform, the CIER index tracks the ratio changes between job vacancies and job seekers in a variety of industries and cities across the country, and identifies the overall trend in China's employment market.
Jointly published by Zhaopin and the CIER at Renmin University, the CIER index has become a leading barometer of China's labor market and macro-economic environment.
The CIER index score is calculated by dividing the number of job vacancies during a specified period by the number of unique job seekers during the same period.
A CIER index score of more than 1 indicates that the labor market is booming, with more vacancies than job seekers.
A CIER index score of less than 1 indicates that the labor market competition is intensifying, with more job seekers than available vacancies.
The labor market in China kept its upward momentum in the fourth quarter of 2016 with the CIER index reaching 2.41, the highest since the first quarter of 2015, compared with 2.22 in the third quarter and 1.93 in the second quarter of 2016. This is an indication of bright prospects for those seeking new employment.
Internet and e-commerce continued to be the best-performing sector and energy/mineral/mining/smelting remained the worst-performing sector
Except for Northeast China, the CIER index for all other regions improved in the fourth quarter from the third quarter of 2016.
Micro-sized companies (companies with fewer than 20 employees) had the highest CIER index score of 2.10 in the fourth quarter of 2016, followed by 1.81 for large companies (companies with more than 10,000 employees).
The CIER index is very likely to decline in the first quarter of 2017
CIER Index Reaching All Year High in the Fourth Quarter of 2016
The job market in China had been on a declining trajectory in 2015 as the economic growth slowed down.
With the overall economy improving in 2016, the job market reversed its declining trend and started to move upward since the second quarter of 2016.
The momentum continued in the fourth quarter with the CIER index reaching 2.41, the highest level since the first quarter of 2015, compared with 2.22 in the third quarter and 1.93 in the second quarter of 2016.
Excluding the effects of seasonality and changing demographics, which have traditionally resulted in a long-term rise in the CIER index scores, the quarterly adjusted CIER index for the fourth quarter of 2016 showed a significant increase, indicating the continuing improvement in China's labor market.
According to Zhaopin's data, total online recruitment demand increased by 43% year-over-year in the fourth quarter of 2016, compared with a 35% year-over-year growth in the third quarter of 2016.
As the economy improved, the labor market in China had gained momentum in the fourth quarter with increasing job demand year-over-year.
With the economy continuing to undergo a shift from an industrial, manufacturing-based economy to one that is more service-based", the performance of different sectors continued to polarize in the fourth quarter of 2016.
Internet and e-commerce was still the best-performing sector with a CIER index of 10.89, up from 7.28 in the third quarter.
Insurance, funds/securities/futures/investment, traffic/transportation and intermediary service sectors were also performing well by CIER index rankings. ■