BEIJING, Oct. 23, 2015 /PRNewswire/ -- Zhaopin Limited (NYSE: ZPIN) ("Zhaopin" or the "Company"), a leading career platform in China focused on connecting users with relevant job opportunities through their career lifecycle, and the China Institute for Employment Research at Renmin University today released the CIER Employment Index Report for the third quarter of 2015 (July - September, 2015). The CIER Index Report reviews and identifies trends in China's employment market. The full report can be obtained at www.zhaopin.com.
A CIER index score of more than 1 indicates that confidence is high for job seekers seeking employment. A CIER index score of less than 1 indicates that confidence for job seekers seeking employment is low.
The CIER index score for a period is calculated with data from zhaopin.com by dividing the number of job vacancies during a specified period by the number of unique job seekers that apply to jobs during the same period. Data in the calculation is derived from Zhaopin's online platform.
1. CIER index for the overall Chinese economy decreased during the third quarter of 2015
The CIER index increased steadily from 2011 to 2014, reflecting the relative ease with which job seekers in the labor market could find employment.
The Chinese economy is now facing challenges as it works to readjust its economy in the face of slowing growth. China's manufacturing Purchasing Manager's Index ("PMI") for September 2015 increased slightly on a sequential basis to 49.8. The employment market in China has been negatively impacted as the 'new normal' began to take hold of the economy during the second quarter of 2015. This in turn caused CIER index scores to trend downwards, decreasing during the past two quarters from its high of 2.46 during the first quarter of 2015. The CIER index further decreased during the third quarter of 2015 to 1.96 from 2.03 during the second quarter of 2015, indicating continued weaker employment confidence in the market.
2. Strongest employment confidence seen in emerging service sector
During the third quarter of 2015, e-commerce registered a CIER index score of 5.63, which was first among all sectors, followed by the funds/securities/futures/investment sector with a score of 5.33. The CIER index for the ten best performing sectors were all above 2.5, demonstrating strong confidence in finding employment in these sectors. The CIER index for the ten worst performing sectors were all lower than 1.0, demonstrating an excess of job seekers in these sectors.
The ten best performing sectors include finance and emerging service sectors such as e-commerce. The ten worst performing sectors were all related to traditional manufacturing and services.
Ten best performing sectors of 3Q15
| Sector |
CIER index |
| E-commerce |
5.63 |
| Funds/securities/futures/investment |
5.33 |
| Insurance |
4.51 |
| Education/training/college |
3.32 |
| Real estate/construction/building materials/engineering |
3.22 |
| Agency |
2.93 |
| Logistics/warehousing |
2.79 |
| Professional service/consulting (accounting/law/human resource) |
2.74 |
| Traffic/transportation |
2.71 |
| Farming/forestry/animal husbandry/fishery |
2.50 |
Ten worst performing sectors of 3Q15
| Sector |
CIER index |
| Accounting/auditing |
0.44 |
| Energy/mineral/mining/smelting |
0.58 |
| Aerospace research and manufacturing |
0.62 |
| Rental service |
0.64 |
| Electricity/power/water conservancy |
0.69 |
| Office supplies and equipment |
0.70 |
| Inspection/testing/authentication |
0.71 |
| Academia/research |
0.72 |
| Property management/business center |
0.79 |
| Environmental protection |
0.82 |
3. Recruitment demand from IT/Internet[1] and financial[2] sectors continued to increase
Total recruitment demand from the IT/Internet sector during the third quarter of 2015 increased 41% year-over-year. Recruitment demand from the e-commerce sector in third and fourth-tier cities increased by more than 100% year-over-year, while demand in the first, almost first and second-tier cities increased by over 50% year-over-year. Recruitment demand from the online games sector in the second and third-tier cites increased by 72% and 130%, respectively, during the third quarter of 2015.
Year-over-year change in recruitment demand from the IT/Internet sector in 3Q15
| IT/Internet |
41% |
| IT service(system, data, maintenance) |
9% |
| Computer software |
24% |
| Computer hardware |
0% |
| E-commerce |
65% |
| Online games |
18% |
Year-over-year change in recruitment demand from the IT/Internet sector across various regions in China in 3Q15
| First-tier |
Almost first-tier |
Second-tier |
Third-tier |
Fourth-tier |
Eastern China |
Central China |
Western China |
Bohai Rim |
Yangtze River Delta |
Pearl River Delta |
|
| IT/Internet |
32% |
44% |
52% |
86% |
85% |
38% |
56% |
49% |
31% |
40% |
41% |
| IT service(system, data, maintenance) |
5% |
6% |
18% |
70% |
47% |
6% |
21% |
16% |
8% |
-5% |
13% |
| Computer software |
16% |
30% |
40% |
47% |
6% |
21% |
34% |
39% |
15% |
20% |
28% |
| Computer hardware |
-2% |
-5% |
10% |
7% |
27% |
-1% |
6% |
0% |
-10% |
-7% |
13% |
| E-commerce |
52% |
74% |
72% |
110% |
121% |
61% |
82% |
76% |
51% |
69% |
58% |
| Online games |
11% |
32% |
72% |
130% |
14% |
17% |
66% |
14% |
16% |
22% |
5% |
Total recruitment demand from the financial sector increased 29% year-over-year during the third quarter of 2015. Recruitment demand from the banking sector increased 45% year-over-year, while recruitment demand from the funds/securities/futures/investment sector increased 28% year-over-year.
As China's financial markets develop, recruitment demand from the financial sector in third and fourth-tier cities grew more rapidly than in first and second-tier cities during the third quarter of 2015, increasing by 70% year-over-year. This increase reflects the expansion of financial services to lower-tier cities in China.
Year-over-year change in recruitment demand from the financial sector in 3Q15
| Financial sector |
29% |
| Funds/securities/futures/investment |
28% |
| Trust/warrant/auction/pawn |
50% |
| Banking |
45% |
Year-over-year change in recruitment demand from the financial sector across various regions in China in 3Q15
| First-tier |
Almost first-tier |
Second-tier |
Third-tier |
Fourth-tier |
Eastern China |
Central China |
Western China |
Bohai Rim |
Yangtze River Delta |
Pearl River Delta |
|
| Financial sector |
28% |
20% |
41% |
70% |
70% |
32% |
39% |
-5% |
20% |
53% |
45% |
| Funds/securities/futures/investment |
28% |
18% |
39% |
67% |
65% |
31% |
38% |
-10% |
21% |
53% |
40% |
| Trust/warrant/auction/pawn |
51% |
40% |
44% |
117% |
118% |
54% |
45% |
37% |
46% |
47% |
73% |
| Banking |
24% |
66% |
86% |
101% |
109% |
42% |
72% |
48% |
-3% |
52% |
113% |
4. Recruitment demand from traffic/transportation and trade/import & export sectors increased steadily, while recruitment demand from the real estate sector dropped
Recruitment demand from the traffic/transportation sector grew steadily thanks in part to various economic stimulus measures, especially those from construction funds established by banks to support infrastructure development. According to statistics compiled by China's National Development and Reform Commission, total approved investment in railway and road construction projects totaled RMB421.6 billion in September 2015. As a result, recruitment demand from the traffic/transportation sector increased 18% year-over-year during the third quarter of 2015, much higher than its 3% year-over-year growth during the second quarter of 2015. Demand from third-tier cities and below increased 87% year-over-year.
China's Belt and Road Initiative created new growth opportunities for foreign trade during the third quarter of 2015. Seeking to take advantage, many Chinese firms increased overseas investment, resulting in increased demand for relevant professionals. Recruitment demand from the trade/import & export sector increased 18% year-over-year.
The real estate sector has yet to make a recovery since last year. Large firms continue to feel the negative impact as they see their financial and operational performances suffer. Recruitment demand from the real estate sector continued to fall, decreasing 15% year-over-year during the third quarter of 2015.
Year-over-year change in recruitment demand for different sectors in 3Q15
| IT/Internet |
41% |
| Financial |
29% |
| Traffic/transportation |
18% |
| Trade/import & export |
18% |
| Telecommunication |
17% |
| Retail/wholesale |
14% |
| Medicine/biotechnology |
13% |
| Manufacturing |
10% |
| Fast-moving consumer goods |
7% |
| Automobile/motorcycle |
4% |
| Durable consumer goods |
1% |
| Real estate |
-15% |
5. Employment situation better in Eastern China
The CIER index score for Eastern and Central China during the third quarter of 2015 were flat sequentially. The CIER index score for Western China decreased significantly on a sequential basis as competition for a limited number of jobs heats up.
Recruitment demand in Central China increased 24% year-over-year during the third quarter of 2015, significantly higher than Eastern China's 17% and Western China's 14% year-over-year growth rate. The implementation of the national urbanization strategy has spurred economic growth across in China's central plains and middle Yangtze River regions. As the government works to transform traditional industries, the Central China region has established local industry clusters, some of which were moved from Eastern China.
| Area |
CIER index |
Year-over-year change in |
|
| 2Q15 |
3Q15 |
3Q15 |
|
| Eastern China |
1.95 |
1.95 |
17% |
| Central China |
1.63 |
1.60 |
24% |
| Western China |
1.44 |
1.35 |
14% |
6. Urbanization increases labor demand
Recruitment demand in third-tier cities increased 37% year-over-year, significantly higher than the 12% year-over-year growth seen during the second quarter of 2015. The increase was mainly due to increased recruitment demand in infrastructure construction and e-commerce.
| City |
Year-over-year change in |
| 3Q15 |
|
| First-tier |
14% |
| Almost first-tier |
15% |
| Second-tier |
23% |
| Third-tier |
37% |
7. Stronger employment confidence seen in micro-and-small enterprises
The CIER index for companies of various sizes during the third quarter of 2015 were (from highest to lowest):
| Company size |
CIER index |
Year-over-year change in |
|
| 2Q15 |
3Q15 |
3Q15 |
|
| Small-sized |
2.83 |
2.55 |
17% |
| Micro-sized |
1.77 |
2.16 |
52% |
| Middle-sized |
1.36 |
1.37 |
19% |
| Large-sized |
1.26 |
1.21 |
5% |
The CIER index score for small and micro-sized enterprises was higher than middle and large-sized enterprises. Thanks to government policies that encourage innovation and entrepreneurship as drivers for the new economy, SMEs have greater growth potential and therefore greater demand for labor.
During the third quarter of 2015, recruitment demand for micro-sized companies increased 52% year-over-year. Recruitment demand from micro, small-and-middle sized companies was much higher than that of large-sized companies.
8. Higher CIER index scores were found among private enterprises, joint-stock companies and joint ventures
The CIER index for various types of companies during the third quarter of 2015 were (from highest to lowest):
| Type |
CIER index |
Year-over-year change in |
|
| 2Q15 |
3Q15 |
3Q15 |
|
| Private enterprise |
4.61 |
4.10 |
15% |
| Joint-stock company |
1.61 |
1.58 |
25% |
| Joint venture |
1.20 |
1.28 |
25% |
| SOE |
1.05 |
1.00 |
9% |
| Wholly foreign-owned enterprise |
1.01 |
0.97 |
7% |
| Public institution |
0.78 |
0.73 |
14% |
| Publically listed company |
0.72 |
0.71 |
23% |
The CIER index score for private companies was highest during the third quarter of 2015. The number of job vacancies and the number of job seekers where highest among private companies resulting in a greater employment confidence and a higher CIER index score for the sector.
Joint-stock and joint venture companies are increasingly becoming more important job creation. Both joint-stock and joint venture companies saw recruitment demand increase by 25% year-over-year during the third quarter of 2015.
As reform of the SOE sector deepens, the attractiveness of working for a SOE decreased. Recruitment demand from SOEs increased by only 9% during the third quarter of 2015.
Many foreign companies began laying off employees globally as a result of slowing growth. Recruitment demand from wholly foreign-owned enterprises increased by 7% during the third quarter of 2015; the lowest growth among all companies.
9. Market outlook
Monthly CIER index scores adjusted for seasonality are expected to trend downwards in coming months as a result of the macroeconomic environment in China.
China's "Internet Plus" strategy has begun an irreversible trend which will continue to create more employment opportunities and restructure the labor force in China. Many industries are now finding the need for various Internet-related professionals which is creating a cross-industry flow of Internet professionals. Emerging industries such as big data and cloud computing are creating new businesses which are spurring employment growth. The demand for Internet/IT talent is expected to continue to grow, especially within the e-commerce sector.
Increased urbanization and social development will continue to draw talent towards Eastern China and Central China as demand from several hundred small-and-middle sized cities outside of China's 40+ super cities grows. During this process, employment options in small-and-middle sized cities will grow as a more favorable employment environment for job seekers is created.
About Zhaopin Limited
Zhaopin is a leading career platform in China, focusing on connecting users with relevant job opportunities throughout their career lifecycle. The Company's zhaopin.com website is the most popular career platform in China as measured by average daily unique visitors in each of the 12 months ended June 30, 2015, number of registered users as of June 30, 2015 and number of unique customers for the three months ended June 30, 2015. The Company's over 100.8 million registered users include diverse and educated job seekers who are at various stages of their careers and are in demand by employers as a result of the general shortage of skilled and educated workers in China. In the fiscal year ended June 30, 2015, approximately 25.6 million job postings[3] were placed on Zhaopin's platform by 418,423 unique customers including multinational corporations, small and medium-sized enterprises and state-owned entities. The quality and quantity of Zhaopin's users and the resumes in the Company's database attract an increasing number of customers. This in turn leads to more users turning to Zhaopin as their primary recruitment and career- related services provider, creating strong network effects and significant entry barriers for potential competitors. For more information, please visit http://www.zhaopin.com.
Safe Harbor Statements
This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Zhaopin may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about Zhaopin's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: Zhaopin's goals and strategies; its future business development, financial condition and results of operations; its ability to retain and grow its user and customer base for its online career platform; the growth of, and trends in, the markets for its services in China; the demand for and market acceptance of its brand and services; competition in its industry in China; its ability to maintain the network infrastructure necessary to operate its website and mobile applications; relevant government policies and regulations relating to the corporate structure, business and industry; and its ability to protect its users' information and adequately address privacy concerns. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Zhaopin does not undertake any obligation to update such information, except as required under applicable law.
For more information, please contact:
Zhaopin Limited
Ms. Jessica Ye
Executive Vice President
[email protected]
Christensen
In China
Mr. Christian Arnell
Phone: +86-10- 5900-1548
E-mail: [email protected]
In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: [email protected]
| [1] The IT/Internet sector includes IT service(system, data, maintenance)，computer software, computer hardware, E-commerce and online games. |
| [2] The financial sector includes funds/securities/futures/investment, banking and trust/warrant/auction/pawn. |
| [3]Zhaopin calculates the number of job postings by counting the number of newly placed job postings during each respective period. Job postings that were placed prior to a specified period - even if available during such period - are not counted as job postings for such period. Any particular job posting placed on the Company's website may include more than one job opening or position. |
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SOURCE Zhaopin Limited
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