China and the Temporary Staffing Industry

In August 2010 it was announced that China had become the world’s second largest economy, with a GDP of US$5.87 trillion. It had overtaken Japan and was only behind the US (NY Times, 2010). With a fast growing economy and a population of around 1.3 billion, the Chinese market is one in which many businesses are now considering entering. With such a large pool of labour,one may think it surprising that China experiences labour shortages. However, China is experiencing shortages in skilled labour, while at the same time, the Chinese economy has undergone continued liberalization of its markets, and the government has recognised the role that temporary staffing agencies can play in addressing labour shortages, and job creation. This working brief explores the emergence of temporary staffing in China, the features of the market, and some examples of multinational temporary staffing agencies becoming involved in theChinese labour market.