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China White-collar Average Salary Declined in the Second Quarter of 2017

Die Nationalflaggen der Volksrepublik China und seiner Sonderverwaltungsregion Hongkong. ©iStock

PR Newswire

BEIJING, July 17, 2017 /PRNewswire/ -- Zhaopin Limited (NYSE: ZPIN) ("Zhaopin" or the "Company"), a leading career platform[1] in China focused on connecting users with relevant job opportunities throughout their career lifecycle, released its 2017 second-quarter report on China labor market supply and demand for white-collar workers. As the competition for jobs eased in the second quarter, the average monthly salary dropped by 3.8% over the previous quarter, the first quarter-over-quarter decline in two years.

Second-Quarter of 2017 China White-Collar Labor Market Highlights:

  • The average monthly salary dropped to RMB7,376 in the second quarter of 2017, down 3.8% over the first quarter. This was the first salary decline in China since the second quarter of 2015.
  • The falling average salary for white-collar workers was mainly caused by the plunge in salaries at micro-sized companies, which cut their salaries by 31% in the second quarter of 2017.
  • Beijing continued to be the city with the highest pay in the second quarter of 2017, with an average monthly salary of RMB9,791, representing a drop of RMB151 from the first quarter.
  • Competition among white-collar workers for jobs eased in the second quarter of 2017, with an average of 35.8 applications per job vacancy, down from 44.6 applications in the first quarter.
  • Telecommunication/carrier operators/value-added service replaced online games as the most competitive sector for job seekers in the second quarter of 2017, with 57.3 applications per vacancy.
  • The most competitive occupation in the second quarter of 2017 was software/internet development/system integration with 122.7 applications per vacancy.

Declining Salaries

Based on online job postings in 37 key cities in China compiled by Zhaopin, the average monthly salary in the second quarter of 2017 was RMB7,376, down 3.8% over the first quarter. This was the first time that the average monthly salary declined quarter-over-quarter since the second quarter of 2015 when Zhaopin began to calculate the nationwide average salary for white-collar workers.

The falling average salary for white-collar workers was mainly caused by the plunge in salaries at micro-sized companies, which cut their salaries by 31% in the second quarter. With investment waning, many small start-ups became more rational and could no longer offer higher salaries to attract talents. An additional factor contributing to the overall decline in salaries in the second quarter of 2017 was that more jobs were located in lower-tier cities, where pay is normally lower.

Average monthly salary for white-collar workers

Quarter


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Kurse

-  
0,00%
Zhaopin ADR Chart

Average salary
(RMB)

Change over
previous quarter

Q2 2016

7,233

3.1%

Q3 2016

7,531

4.1%

Q4 2016

7,606

1.0%

Q1 2017

7,665

0.8%

Q2 2017

7,376

- 3.8%

Among job postings in the second quarter of 2017, 32.8% of positions offered monthly salaries between RMB4,001 and 6,000, and 25.9% offered monthly salaries of more than RMB8,000. About 20.3% of positions offered monthly salaries between RMB2,001 and 4,000.

Breakdown of positions by monthly salaries in the second quarter of 2017

Salary (RMB)

Percentage of positions

Over 8,000

25.9%

6,001 to 8,000

19.8%

4,001 to 6,000

32.8%

2,001 to 4,000

20.3%

Below 2,000

1.1%

Beijing continued to be the city with the highest pay in the second quarter of 2017, with an average monthly salary of RMB9,791, representing a drop of RMB151 from the first quarter. The average monthly salary also declined slightly in Shanghai and Shenzhen in the second quarter. The salary in Hangzhou actually went up to RMB7,933, jumping to the 4th in ranking.

Average monthly salary for cities in the second quarter of 2017

Ranking

City

Average
monthly salary (RMB)

Ranking

City

Average
monthly salary
(RMB)

1

Beijing

9,791

20

Changsha

6,721

2

Shanghai

9,337

21

Wuxi

6,704

3

Shenzhen

8,866

22

Lanzhou

6,638

4

Hangzhou

7,933

23

Kunming

6,592

5

Guangzhou

7,754

24

Nanchang

6,538

6

Dongguan

7,552

25

Hefei

6,516

7

Ningbo

7,423

26

Tianjin

6,477

8

Nanjing

7,263

27

Zhengzhou

6,448

9

Urumqi

7,230

28

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