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Economic conditions

Foreign Talent Fills Gap in China's Workforce

Strategic Insights

— 1 min read

Beijing is experiencing a significant influx of foreign workers, particularly in the private sector, as a lack of qualified domestic personnel creates a talent shortage. According to the Ministry of Labour and Social Security, the number of foreigners working in China surpassed 150,000 in 2022, nearly doubling from three years earlier. This trend is most pronounced in the information technology (IT) and management sectors, with human resources and finance departments also in high demand. Shanghai alone hosts an estimated 40,000 foreign workers, with many more attracted to the city's thriving business landscape.

Key Takeaways:

  • The number of foreigners working in China has nearly doubled in the past three years, reaching a record high of over 150,000 in 2022.
  • The majority of these foreign workers are employed in overseas-funded companies and local offices of multinationals, particularly in coastal areas and big cities in inland provinces.
  • The most sought-after positions include IT, management, human resources, and finance roles, with an estimated 40,000 foreign workers in Shanghai alone.
  • The State Administration of Foreign Experts Affairs is actively hiring foreign experts every year to address China's talent shortage.
  • Foreign workers in senior positions, such as management and professional roles, are often paid two to three times more than their local counterparts.
  • There has been a shift in the type of positions filled by expatriates, with an increasing trend to assign expats at middle management and professional levels since 2004.

Statistics:

  • 150,000: The number of foreigners working in China in 2022, nearly doubling from three years earlier.
  • 40,000: The estimated number of foreign workers in Shanghai.
  • 2001: The year China joined the World Trade Organization (WTO).
  • 2004: The year when the trend of assigning expatriates at middle management and professional levels began.

Sources:

  • Ministry of Labour and Social Security
  • State Administration of Foreign Experts Affairs
  • Gao Lin, official with the Ministry of Labour and Social Security's employment department
  • Wang Tongxun, senior expert with the Chinese Academy of Personnel Science
  • Mercer Consulting
  • Association of Chartered Certified Accountants (ACCA)
  • Alan Zhang, leader of Mercer's Human Capital Product Solutions business in China

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