Asia charges on

All eyes may be on Greece, its tough “austerity” measures and the spiraling Euro this month; but employers in Asia remain significantly upbeat. Far from any new threats of economic meltdown, they are on a talent buying spree. Their only real concern is how to attract and retain talent in this region’s ever-tightening labour market.

That, at least, is the verdict from two independent research reports that entered circulation in May. The quarterly Robert Walters Asia Job Index and the Hudson Report into Hiring and HR Trends both show a region that continues to grow strongly, and continues to expect strong growth over the long term.

The reports show this through a number of metrics.

Analysing the number of job ads appearing in Singapore and Hong Kong websites and newspapers, for example, indicates a strong rise in demand for labour over the three months to March 31. This was particularly true when it came to professional-level roles in the first quarter. According to Robert Walters, advertised positions jumped by 26% over those three months alone in Hong Kong. Singapore newspapers carried an average of 9% more job ads in March than in January, while in China the number blew out by 33%.

Overall, job advertising is up by 46% when compared with the same period last year,

Mark Ellwood, Managing Director, Robert Walters Asia, says job ads fell slightly during the Chinese New Year period (as was expected) but the remaining figures are evidence of a resurgent region. “We believe that confidence amongst employers has returned and (the) recovery is well and truly underway,” he said. “Things are more positive (now) than they have been in some time.”

The Hudson Report also highlights increased labour market activity in the key centres of Singapore, Hong Kong and China (Beijing and Shanghai principally). “Expectations are growing in all three markets, confirming the continuing economic recovery,” Mike Game, CEO – Asia, Hudson, says.

His group’s research looks at the expectations of 1600 key “employment decision makers” in the three centres, primarily executives and HR heads in multinational organisations. That survey found the hiring plans are currently strongest in China – where a significant 64% of employers planned to have increased headcount by the end of June this year. That’s a significant jump from the already-high 49% of employers that indicated hiring plans in the first quarter of this year.

In Hong Kong, expectations are up for the fourth consecutive quarter. 59% of employers there are looking to increase headcount this (second) quarter. The information technology sector is particularly buoyant, with 63% of employers indicating positive hiring plans.

Meanwhile, the Singapore labour markets are also charging up. Hudson has found expectations there are nearly three times as high as they were in the midst of the economic downturn last year. 54% of employers are looking to build up their staff lists this quarter, compared with just 20% over the same three months in 2009.

Who will miss out?

Of course, not all of these hiring expectations will come to fruition. The problem in Asia is on the supply side – there just isn’t enough talent to go around. Moreover, those professional-level workers that are in demand know their position well, and are happily watching the bids for their services rise and rise.

This is an issue not just for those employers looking to hire new staff; but also those who are presumably looking to retain the talents they already have on board. Hudson has found evidence of a marked increase in the offer of increased pay and benefits for workers who have found interest elsewhere. “Most employers are ready to make counter offers to retain key staff,” Game says. That’s likely to put increased pressure on wages and salaries going into the rest of the year.