Tracking China’s Talent Flow

China’s job seekers flocked to the internet sector last year amid a severe talent shortage and the second-highest average salaries among 11 major industries, filling vacancies in e-commerce, gaming, software and information technology (IT) services, a new report shows.

The sector showed 5.97% net inflow of talent from the third quarter of 2017 to the fourth quarter of 2018, the highest of any industry, according to a report by jobs website Liepin.com based on data collected from its platform. Real-estate was second, with a net inflow of 4.53%, followed by pharmaceuticals, and energy and chemicals.

The biggest loser was the electronics and telecoms sector, which saw a net talent outflow of 10.18%, with transport and trade close behind with an outflow of 9.88%, according to the report, which defines “talent” as people earning 100,000 yuan ($15,000) a year or more.

The report from Liepin contrasts with recent reports that China is stepping into an “employment winter” (link in Chinese) and an “unemployment tide” after many big names in the internet industry including NetEase, Meituan Dianping and Qunar laid off staff in the last quarter of 2018.

Talent is still in short supply in the IT sector, Liepin said in its report. The government’s “Internet Plus” strategy which aims to integrate mobile internet, cloud computing, big data and the Internet of Things with modern manufacturing continues to provide more job opportunities for IT professionals.

The report said that in 2018, the number of job postings for the internet industry on its platform jumped by 61.25%, although three other industries had bigger gains, with energy and chemicals showing the highest increase of 66.8%.

Liepin, which listed on the Hong Kong Stock Exchange in June 2018, claims to have a database of more than 340,000 companies and 47 million registered job seekers.

The report gave no reason for the outflow of professionals from the electronics and telecoms industry. But the consumer market for such goods has slumped over the past year and the outlook is gloomy. Smartphone shipments in China fell 16% to 390 million units, according to the China Academy of Information and Communications Technology. Lei Jun, the founder of smartphone maker Xiaomi Corp., told staff earlier this month that 2019 “will be the most challenging time yet.”

Contact reporter Gao Baiyu (baiyugao@caixin.com)