China’s economic slowdown has put the squeeze on the job market. College graduates have to scratch for good entry-level jobs. Salaries are moderating.

With new hiring bitten by budget restraints, recruiters are straining to find the best talent their limited funds can buy.

Human resources consultancy Aon Hewitt says average salary growth in China slowed this year for the first time in six years, to 8.5 percent.

Domestic employers outperformed their multinational counterparts, with an average 10.5 percent increase.

“Multinationals are under greater impact from the global economic slowdown, with tighter salary controls from the headquarters,” said Peter Zhang, vice president of Aon Hewitt China. “While their Chinese counterparts are more focused on the local market and striving to attract more talent.”

Some companies have pared new hiring by as much as 50 percent and merged existing positions, according to recruiters.

Yet, job seekers are resilient, and human resource professionals say there are silver linings to the cloud over the job market.

A record 7.24 million senior college students were looking for jobs after leaving school this year, compared with 7 million last year.

Zhu Zhihui, a Tongji University student who recently took the civil service exam, applied to three companies and arranged an interview with a Big Four accounting firm.

“Giving yourself a number of options is necessary to ensure you get at least one shot in the job market,” Zhu said.

Still, it’s better to be a job-seeker in China than, say, in many European Union countries with high unemployment rates, according to some human resources specialists.

Zhang said competition in China to recruit customer-focused professionals is fierce in industries such as e-commerce, consumer goods, retailing and finance.

Richard King, managing director for headhunters Michael Page, said more skilled technology workers are needed in automotive, pharmaceuticals and manufacturing segments.

He also said there was strong demand for professionals to work in multinational companies engaged in e-commerce.

Michael Page, in a survey that involved 700 company questionnaires and 5,000 employer interviews, said it expects average salaries to rise between 6 and 10 percent next year.

Professionals in logistics, property and construction, engineering and manufacturing, and technology sectors are likely to lead double-digit pay growth, the survey showed.

Employee job-hopping will remain one of the biggest challenges for employers, especially as more opportunities open up in smaller, inland cities, the survey showed.

Shanghai Daily invited Massimo Milletti, president of Eric Salmon & Partners, an executive search firm, to share his perceptions of the China job market and the work environment in Shanghai.

Eric Salmon’s recruitment mainly covers luxury brands, automotive, pharmaceuticals, fast-moving consumer goods, retailers and fashion industries. It works closely with European and US-based companies.

The firm has offices in Shanghai and Hong Kong, and local Chinese companies comprise about a quarter of its clientele.

How would you characterize the Chinese job market?

A: I have a feeling that people are ambitious. The business people here wish to be stronger and build a stronger economy. This is an ambition and a challenge when everyone wants to be the No. 1 in the world. It was a bit of surprise for me to see such strong objectives here.

Which industries require the most talent?

A: Fast-moving consumer goods industries need a lot of people to power their quick growth in China. Another is the pharmaceuticals sector, where research and development is picking up. Many foreign companies are stepping up recruitment as they look to localize their workforces.

What qualities do Chinese and foreign companies prize most when seeking talent?

A: Technical competence, communication skills, local knowledge and international experience. We see strong demand for skilled workers in manufacturing industries and designers for fashion brands.

Concerning foreign companies, the demand from our clients for high quality talent is increasing each year. For example, in retailing and luxury industries, there is a gap in the China market for creating a comfortable shopping atmosphere for consumers. So shop managers who possess that talent are in high demand. In the past, employers needed more executives, but now they are seeking entrepreneurs with capabilities and team management skills.

Is Shanghai considered a good place to work?

A: If you ask a European manager, especially the ones in their 30s, to come to work in Shanghai, most of them will say “yes” immediately. They will find it a fascinating experience. That has totally changed from 10 years ago. With high unemployment rates in some European countries, young people are very willing to have an adventure here. For executives, they come to seek career advancement because there are more opportunities here. Of course, there will always be concerns, such as accommodation costs, ease of communication and lifestyle problems.

What about air quality?

A: Yes, the pollution is a big problem for Chinese and expats alike. That is one of the most serious problems you have here.

What can Shanghai do to increase its attractiveness for foreign talent?

A: More green areas, more parks where people can relax and breathe fresh air. Most of our clients would say that Shanghai is doing a good job in providing a proper lifestyle, education and other facilities for expats and their families. The city is more open and the system more transparent than in many cities in China.But, usually there is a “crisis” after five or six years, when expats start to really miss their old lifestyles and want to return to Europe. The pace of life here is far quicker than in Europe. Some people find it tough to cope with.

What sorts of career paths do expats usually have after leaving Shanghai? Are they generally replaced by locals when they leave?

A: Sometimes people return to their headquarters, or they move to other cities such as Singapore and Hong Kong to broaden their Asia-Pacific experience. We see more companies seeking local talent to fill vacancies left by foreigners. Still, multinationals usually keep a certain percentage of expats, for example up to 20 percent.

I guess what I was wondering is whether expats with China experience have an advantage in their career tracks?

A: It is still too early to say, but their experience in China and other Asian markets is very appreciated in most companies. They might stay to take charge of Asian businesses, or, if they want to change jobs, there are a lot of companies wishing to explore the markets here.