China headhunter SunTzu Recruit has learned that the employment situation for 2023 university graduates shows distinct characteristics described as “one rise, one difficulty, and two imbalances.”

According to the analysis, the popularity of central state-owned enterprises (SOEs) continues to climb. From the perspective of the nature of hiring companies, the number of positions in central SOEs has been increasing yearly, accounting for 33.8% in 2023. In terms of resume submissions, central SOEs represent 63.1%, with an overall supply-demand ratio of approximately 3.5:1, indicating fierce competition. Central SOE positions are highly favored by university graduates.

Employment difficulty has increased in economically developed regions. Geographically, resumes submitted to first-tier and new first-tier cities account for 31.3% of the total submissions on the platform. At the same time, recruitment demand in these cities has decreased by 10.14% year-on-year. This rise in supply and drop in demand suggest that talent competition in economically developed regions has intensified, making employment increasingly challenging.

Certain industries exhibit supply-demand imbalances. In the new materials and biopharmaceutical industries, the number of hires is less than the demand (with ratios of 1:2.7 and 1:2.3, respectively), indicating significant talent shortages and recruitment difficulties. Conversely, in emerging information technology and high-end equipment manufacturing, the ratio of suitable candidates to job postings reaches 15:1 and 12:1, respectively, reflecting intense competition and high pressure on job seekers.

There are imbalances in the supply and demand for general and technical R&D talent. For general positions such as customer service, sales, and administration, the application ratios are high, with competition ratios exceeding 25:1. There is a notable gap in the recruitment of skilled personnel. Although the average salary for technical R&D positions is 32%-57% higher than for general positions, the hiring-to-demand ratio is only 1:1.8, indicating a need for better alignment of supply and demand.

According to the Ministry of Education, the number of 2024 university graduates is expected to reach 11.79 million, an increase of 210,000 compared to the previous year. The employment outlook for 2024 university graduates predicts “one increase, one challenge, and intense competition”:

1. Increase in demand for fresh graduates: Survey data from CIIC Recruitment shows that 81% of companies have plans to recruit 2024 graduates, with 32% indicating an increase in hiring and half expecting to maintain the same level as the previous year.
2. Stability in certain industries with significant potential in emerging fields: Industries such as new energy, electronics and communications, and machinery manufacturing continue to have strong recruitment needs, up 22.37% from the previous year. These industries demonstrate resilience and will remain effective in absorbing employment. Emerging industries such as bioengineering and energy conservation/environmental protection have seen a 17.23% year-on-year increase in job openings, indicating substantial potential for job creation.
3. Preference for stable employment and intense competition within the system: Given the current economic and job market conditions, graduates are increasingly seeking stable employment. This trend has led to high competition for positions in public institutions and central SOEs, with short-term mismatches between supply and demand likely to continue.

Overall, to attract, recruit, and retain the best talent, HR teams must ensure clear job descriptions, value diversity and inclusion, take the time to thoroughly review applications, invest in employer branding, and prioritize the candidate experience. Additionally, thorough background checks and close collaboration with hiring managers are essential for successful recruitment. By avoiding common mistakes and implementing these strategies, HR teams can improve the efficiency and quality of their hiring processes, ultimately contributing to organizational growth and success.

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