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China Hand

  • ID: 2155507
  • Report
  • Region: China
  • 113 Pages
  • The Economist Intelligence Unit
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China's labour market is being restructured. The unskilled workers who once fuelled the country's factories, often at low pay and long hours, are demanding better wages and better working conditions. Many of them are rural migrants who have lived and worked for years in the cities, but remain legally bound to their villages by their household registration (hukou)-a situation that leaves them and their families unable to access urban social benefits, including education and public housing. In recent years, the government has begun to focus on addressing these tensions, which threaten to manifest as long-term structural problems.

China's new 13th five-year plan (FYP, spanning the years from 2016-20), crafted to steer the country towards moderate prosperity, includes social reform as part of its overall emphasis on economic transformation. In particular it touches on reforming the hukou system, which is blamed for limiting labour mobility and preventing millions of rural migrants from enjoying urban welfare benefits in the cities where they work. The migrant flow has created new social problems, including those related to the care of children who were either left behind to fend for themselves or grew up in the cities without an urban hukou.

Rising wages, while positive from the perspective of individuals, also pose challenges for China, which needs to stay competitive with rival countries that offer cheaper labour pools. The 13th FYP for Developing the Human Resources and Social Insurance Sector (1) (Renshebufa [2016] No. 63) has replaced the 12th FYP's stipulated annual 13% increase in minimum wages with a controlled mechanism for adjusting wages at more reasonable levels. The government also is tinkering with welfare benefits: the required contribution rates for individuals and enterprises towards pension, unemployment insurance and housing provident funds are to be lowered over the next two years from May 1st 2016. China Labour Bulletin, a labour watchdog based in Hong Kong, reports that several provinces and cities, including Beijing, have already cut employer contributions to 19% from 20%. To ease of the burden of pension payments, the Ministry of Human Resources and Social Security is proposing to raise the retirement age gradually during 2017 to 2022. The government is expected to introduce implementing details in 2017, although none had been released as of the publication of this report.
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China Hand

Chapter 8: Human resources: China's provinces and their capitals

Chapter 8: Human resources: Section 1: Executive summary
The emergence of a new workforce
Challenges under a new economic framework
Developing local talent
Trends in talent localisation

Chapter 8: Human resources: Section 2: China's labour market: Overview

Chapter 8: Human resources: Section 2: China's labour market: Talent shortage
What companies are saying
Filling the gap in skills

Chapter 8: Human resources: Section 2: China's labour market: State-sector managers

Chapter 8: Human resources: Section 2: China's labour market: Overseas returnees

Chapter 8: Human resources: Section 2: China's labour market: High-level foreign experts

Chapter 8: Human resources: Section 2: China's labour market: Talent-grooming programmes

Chapter 8: Human resources: Section 2: China's labour market: Expatriates

Chapter 8: Human resources: Section 2: China's labour market: Expat Talent in Shanghai

Chapter 8: Human resources: Section 2: China's labour market: Urbanisation and hukou reform
Local regulations differ

Chapter 8: Human resources: Section 3: Recruiting in China: Overview

Chapter 8: Human resources: Section 3: Recruiting in China: The search for white-collar workers

Chapter 8: Human resources: Section 3: Recruiting in China: Environmental pollution remains problematic

Chapter 8: Human resources: Section 3: Recruiting in China: Recruitment channels

Chapter 8: Human resources: Section 3: Recruiting in China: Online services

Chapter 8: Human resources: Section 3: Recruiting in China: China's online companies will drive employment growth in the digital

Chapter 8: Human resources: Section 3: Recruiting in China: Labour-service corporations

Chapter 8: Human resources: Section 3: Recruiting in China: Job fairs

Chapter 8: Human resources: Section 3: Recruiting in China: Personal referrals

Chapter 8: Human resources: Section 3: Recruiting in China: Campus recruitment

Chapter 8: Human resources: Section 3: Recruiting in China: Executive search firms

Chapter 8: Human resources: Section 3: Recruiting in China: A transfer problem

Chapter 8: Human resources: Section 4: Education and training in China: Overview

Chapter 8: Human resources: Section 4: Education and training in China: The state of education

Chapter 8: Human resources: Section 4: Education and training in China: China's top universities
University rankings

Chapter 8: Human resources: Section 4: Education and training in China: Gaokao reform
Quality issues

Chapter 8: Human resources: Section 4: Education and training in China: China's five-year education plan (2016-20)

Chapter 8: Human resources: Section 4: Education and training in China: Higher management education
MBA and EMBA

Chapter 8: Human resources: Section 4: Education and training in China: Training programmes

Chapter 8: Human resources: Section 4: Education and training in China: Online study

Chapter 8: Human resources: Section 5: Managing China's workforce: Overview

Chapter 8: Human resources: Section 5: Managing China's workforce: Staff retention
Managing employees from Generation Y
Managing employees from Chinese enterprises

Chapter 8: Human resources: Section 5: Managing China's workforce: China fares poorly in ITUC index

Chapter 8: Human resources: Section 5: Managing China's workforce: Human-resource management

Chapter 8: Human resources: Section 5: Managing China's workforce: Performance evaluation
Corporate governance

Chapter 8: Human resources: Section 5: Managing China's workforce: Localisation and succession

Chapter 8: Human resources: Section 5: Managing China's workforce: Downsizing ventures

Chapter 8: Human resources: Section 6: Compensation and benefits in China: Overview

Chapter 8: Human resources: Section 6: Compensation and benefits in China: Minimum wages

Chapter 8: Human resources: Section 6: Compensation and benefits in China: The bare minimum

Chapter 8: Human resources: Section 6: Compensation and benefits in China: Compensation and benefits packages

Chapter 8: Human resources: Section 6: Compensation and benefits in China: Compensation for blue-collar workers

Chapter 8: Human resources: Section 6: Compensation and benefits in China: Compensation for white-collar workers

Chapter 8: Human resources: Section 6: Compensation and benefits in China: Standardising pay scales at state-owned enterprises

Chapter 8: Human resources: Section 6: Compensation and benefits in China: Social insurance

Chapter 8: Human resources: Section 6: Compensation and benefits in China: National Social Security Fund

Chapter 8: Human resources: Section 7: Labour legislation: Overview

Chapter 8: Human resources: Section 7: Labour legislation: The law on labour dispatch (and revisions)

Chapter 8: Human resources: Section 7: Labour legislation: The Labour Contract Law

Chapter 8: Human resources: Section 7: Labour legislation: The law on wages

Chapter 8: Human resources: Section 7: Labour legislation: The law on trade unions

Chapter 8: Human resources: Section 7: Labour legislation: The law on labour disputes

Chapter 8: Human resources: Section 7: Labour legislation: Other labour-related laws

Chapter 8: Human resources: Section 7: Labour legislation: Reform of personnel recruitment in social organisations

Chapter 8: Human resources: Section 7: Labour legislation: Expatriate employment

Chapter 8: Human resources: Section 7: Labour legislation: Grading foreigners in China

Chapter 8: Human resources: Section 7: Labour legislation: Chronology of labour legislation in China
Year of issue

Appendix: Laws and regulations affecting human resources
Interim Provisions on the Administration of Chinese-Foreign Joint Venture Talent Intermediary Agencies (2015 Revision) *
Chapter I General Provisions
Chapter II Incorporation and Registration
Chapter III Scope of Business and Management
Chapter IV Penalty Provisions
Chapter V Supplementary Provisions
Editor's note: The following laws and regulations with previous Human resources chapters.
Appendix: Laws and regulations affecting human resources
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