Global corporate freezes hit China - Wang&Li

Still packed
by Fons1 via FlickrShopping malls and restaurants in China's bit cities are still packed with people, but recruitment agency Wang&Li expects that the global freeze at multinational corporations will also hit the white-collar workers in China, writes Larry Wang, CEO of the firm in its December newsletter.

Just in terms of our own recruitment business where roughly 85% of our clients are global companies, about 50% of the positions and searches that we have been working on have been indefinitely put on hold or frozen within the past two month. This drop in hiring activity is not so much because of slower business being felt in China’s domestic market, but because of the big hit that the business of many multinationals is taking in major markets, like the U.S. and Europe.

Cost-cutting measures are often imposed throughout global companies without looking at possible different needs in different parts of the world. Those could include also lay-offs, wants Wang&Li. Also companies have put recruitment of existing vacancies lower on their priority lists and interviewing of candidates is going at a very slow pace. Headquarters still expect their China-subsidiaries to deliver double-digit growth as they did in the past.

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by Fons1 via Flickr

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