China ranks second globally for talent competitiveness according to Hays Global Talent Tracker
A new report released by Hays, the global leader in specialist recruitment and workforce solutions, reveals how China’s position in the global talent landscape is being shaped by a range of workforce and labour market factors. The report, which compares labour market performance across 35 locations, highlights both opportunities and risks in attracting, developing, and retaining skilled talent—offering valuable insights for business leaders and policymakers.
China’s global standing: strengths and challenges:
China ranks 2nd out of 35 in global talent competitiveness, a measure of how effectively a country attracts, develops, and retains skilled workers. That ranking is better than Singapore (4th), Malaysia (11th), Hong Kong SAR (14th) and Thailand (24th) but behind Japan (1st).
The research shows that China ranks 1st in talent market flexibility (a measure of how easily the labour market can adapt to changing business needs) and 4th in talent value (a measure of how investment in people delivers returns) among the 35 markets assessed.
China (25th) is behind on talent participation—Japan (1st), Singapore (9th), Hong Kong (21st) all rank higher on workforce engagement and resilience.
China (29th) was also outperformed on talent development by Singapore (13th), Japan (18th) and Hong Kong (25th). This is in large part because those markets invest more in education and skills investment.
While China remains a global leader in banking and financial services, technology and life sciences, new businesses face significant barriers, from high setup costs to data restrictions and cultural unfamiliarity.
“Hays’ findings show how the global landscape for talent is evolving at unprecedented speed, with countries investing strategically to build more innovative, resilient and future-ready workforces amid increasing economic uncertainty,” said Dirk Hahn, Chief Executive Officer of Hays.
“As organisations navigate this complexity, the ability to identify and harness the right talent ecosystems will become a defining factor for long-term success.”
“The findings reinforce there are many contributing factors to a strong workforce, and each market can and should consider that combination differently, but by understanding these trends, businesses can make smarter decisions about where to invest, grow and compete on the world stage.”
China: A global talent leader with room for growth
Hays’ research highlights a range of factors shaping the future of China. When reviewing the Compound Annual Growth Rate of Gross Value Added (GVA CAGR) of local domestic sectors, banking and financial services, technology and life sciences were identified as the fastest growing industries by 2030.
Much of this growth can be attributed to China’s labour market which offers compelling advantages for organisations seeking scale and agility, with productivity remaining strong relative to labour costs, particularly outside major urban centres. Talent sourcing is relatively easy compared to other markets, enabling businesses to fill skill gaps in a fast and efficient manner. Domestic firms also benefit from unparalleled flexibility, a robust digital infrastructure, and a growing gig economy that enhances responsiveness.
But while there are clear strengths, the data also points to areas where targeted action is needed to remain competitive in attracting global talent and investment.
“China’s global talent positioning is driven by exceptional scores in the Market Flexibility and Value pillars,” said Marc Burrage, Managing Director for Hays Asia. “Domestic employers benefit from strong productivity and a growing pool of digitally capable talent.”
“However, challenges are emerging that could reshape the cost-benefit equation. Wage inflation is accelerating in key urban centres, potentially narrowing China’s traditional cost advantage. For new entrants, regulatory complexity, high setup costs, data restrictions, and unfamiliar legal frameworks can limit flexibility and increase operational risk.”
“For organisations exploring the scope of China’s labour market, success will depend on core factors beyond scale. Local partnerships, targeted upskilling and alignment with national priorities such as green tech and automation, all make a difference in building long-term value.”
The Hays Global Talent Tracker was developed in partnership with Oxford Economics in early 2025, analysing labour market data across 35 markets. The research benchmarks national workforces using a composite index built from five pillars – talent value, participation, development, flexibility, and innovation – drawing on a wide range of economic, demographic, and skills-based indicators.
Hays Specialist Recruitment (Shanghai) Co., Ltd. is one of China's leading recruitment companies in recruiting qualified, professional, and skilled people across a wide range of industries and professions.
Hays has been in China for over a decade with operational offices in Shanghai, Beijing, Suzhou, and Guangzhou. We boast a track record of success and growth, dealing in permanent positions and workforce solutions such as recruitment process outsourcing (RPO) and Managed Service Programmes (MSP) across 14 different specialisms, including Accountancy & Finance, Banking & Financial Services, Technology, Engineering, Human Resources, Legal, Life Sciences, Marketing & Digital, Office Professionals, Procurement, Supply Chain and Sales. We continue to strengthen our position in Asia with the world-leading ISO 9001:2015 certification in all our operational markets including China, Hong Kong SAR, Japan, Malaysia, Singapore, and Thailand.
About Hays
Hays plc (the "Group") is the world’s leading specialist in recruitment and workforce solutions, such as Recruitment Process Outsourcing (RPO) and Managed Service Provider (MSP). The Group is the expert at recruiting qualified, professional, and skilled people worldwide, being the market leader in the UK, Germany, and Australia and one of the market leaders in Continental Europe, Latin America, and Asia. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As of 30 June 2025, the Group employed over 9,900 staff operating from 207 offices in 31 markets. For the year ended 30 June 2025:
the Group reported net fees of £972.4 million and operating profit (before exceptional items) of £45.6 million.
the temporary placement business represented 62% of net fees and the permanent placement business represented 38% of net fees.
Technology is the Group’s largest division, with 25% of net fees, while Accountancy & Finance (15%) and Engineering (11%), are the next largest.
Hays operates in the following markets: Australia, Austria, Belgium, Brazil, Canada, China, the Czech Republic, Denmark, France, Germany, Hungary, Hong Kong SAR, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Romania, Singapore, Spain, Sweden, Switzerland, Thailand, UAE, the UK, and the USA.
