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Small cities have an edge over bigger rivals in job relocation

By Ding Qingfen (China Daily)
Updated: 2009-07-21 08:01

Second-tier cities are becoming more attractive to Chinese labor for job relocation, according to a report released yesterday by Manpower, the world's leading employment service provider.

The findings were based on interviews with over 1,070 people as part of Manpower's Cross-city Talent Migration Survey.

Nearly 30 percent of respondents said they had relocated for work in the past, and of this 32 percent moved within the first-tier cities while 21 percent relocated from first-tier to emerging cities.

Over 47 percent of the respondents said they would consider relocating for work in one or two years if there are suitable opportunities. Among this 36 percent said they are willing to relocate from first-tier cities to second-tier cities like Hangzhou, Chengdu and Dalian.

However first-tier cities still continue to be the first choice for Chinese labor, with 49 percent willing to relocate to jobs in those places.

"Due to rising operational costs and fierce competition in the first-tier cities, many multinationals are now moving businesses to emerging cities, stimulating talent demand in these areas and promoting talent mobility," said Danny Yuan, managing director for Manpower China.

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The Business Climate Survey by American Chamber of Commerce released early this year also said 60 percent of its members have expanded business into the second- and third-tier cities, with others exploring the feasibility of moving to these locations.

In 2008, economies of the second-tier cities including Sanya, Dalian, Hangzhou, Tianjin and Shenyang posted growth above 16 percent, stronger than that of first-tier, ranging from 8 to 12 percent.

Other second-tier cities and municipalities like Xi'an, Chongqing and Qingdao also registered growth above 12 percent.

According to the Manpower survey, six of the most preferred locations among the top ten cities in the Chinese mainland include the second-tier cities of Hangzhou, Suzhou and Wuxi, although Shanghai, Beijing and Hangzhou continue to be the top three locations.

More than half of the respondents, nearly 59 percent, said they consider better employment opportunities the prerequisite for job relocation. The other two major reasons for relocation are opportunity for long-term career development and more pay.

For those who have gained rich working experience in the first-tier cities and currently encounter career bottleneck, "they can consider career opportunities in emerging cities to achieve the breakthrough and enjoy better career development," said Yuan.