Posts tagged ‘Tangshan’

08/06/2014

China taps tech training to tackle labor market mismatch | Reuters

China is waking up to a potentially damaging mismatch in its labor market.

Job seekers attend a job fair at Tianjin University November 22, 2013. REUTERS/Stringer

A record 7.27 million graduates – equivalent to the entire population of Hong Kong – will enter the job market this year; a market that has a shortage of skilled workers.

Yet many of these university and college students are ill-equipped to fill those jobs, prompting the government to look at how it can overhaul the higher education system to bridge the gap. The problem is part structural, part attitude.

While most liberal arts students are still looking for work after graduating this summer, 22-year-old Li Xidong is preparing to start a job as an electrician that he landed well before finishing three years of training at a small vocational school.

Li’s diploma may appear less impressive, but his coveted job in a tight labor market may hold the key to the employment conundrum in the world’s second largest economy. The machinery sector alone projects a gap of 600,000 computer-automated machine tool operators this year, media have reported.

“We’re trained as skilled workers, it’s quite easy for us to find jobs while still in school,” said Li, who is in the final stretch of a 3-year program at Hebei Energy College of Vocation and Technology in Tangshan, an industrial city 180 kms (112 miles) east of Beijing.

“Seventy percent of our class found work and some others are starting their own businesses,” Li noted, as he waited for a friend at a recruitment fair in the capital, where fewer than a third of this year’s university graduates had found work by end-April.

The government has said it plans to refocus more than 600 local academic colleges on vocational and technical education – replacing literature, history and philosophy with technology skills such as how to maintain lathes and build ventilation systems. Course curricula will be tailored to meet employers’ specific needs.

Pilot programs will be launched this year, and 150 local universities have signed up for the education ministry’s plan, the official Xinhua news agency has reported.

via China taps tech training to tackle labor market mismatch | Reuters.

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02/05/2014

Leaked Comments From Top Property Developer: China Is Built Out – China Real Time Report – WSJ

Spring hasn’t sprung for China’s chilly housing market and it may not for some time, a high level executive with the country’s largest real-estate developer said in rare remarks leaked online.

A glut of apartments and tightness in the credit market don’t bode well for property developers, said Mao Daqing, vice chairman of China Vanke.

A Chinese flag flies in front of a residential building developed by China Vanke Co., in the Fangshan district of Beijing. Bloomberg News

“Overall, China has reached its capacity limit for new construction of housing projects, only some coastal third- and fourth-tier cities have potential for capacity expansion,” Mr. Mao, who oversees the firm’s Beijing operations, said at a closed door meeting in Beijing on Wednesday (in Chinese). “As to whether there is room for home prices to rise, I don’t see any possibility for a rise in home prices, especially in cities with large housing inventory, unless the government pushes out another few trillion (in stimulus).”

China Vanke Beijing confirmed that Mr. Mao provided an analysis of the housing market in a private event, but added that there were no official transcripts.

Housing sales fell 7.7% in the first quarter this year, and remained sluggish in April, according to private sector estimates.

There is a glut of homes in China’s second-tier cities and some third- and fourth-tier cities due to oversupply of land, Mr. Mao said, highlighting cities like Tangshan, Shenyang and Wuxi. There is insufficient demand as there are not enough new migrants moving into these cities, and with the rich preferring to buy homes in major cities like Beijing.

Any developer who invests in Tangshan, an industrial city east of Beijing, is walking into a trap, he said.

China Vanke, which has a presence in more than 60 Chinese cities, earlier this weak reported a rare year-on-year slide in net profit in its first quarter results.

Mr. Mao also raised some red flags in tier-one cities such as Beijing and Shanghai as well. While demand from end-users is still strong in such cities, he said, land values — seen as a measure of a potential property bubble — are too high. He said land prices were accelerating faster than housing prices in the capital as a result of government efforts to containing prices of new homes there.

He went on to compare land values in Beijing with those in Japan and Hong Kong just before bubbles in those cities burst.  Tokyo’s total land value in 1990, prior to the property bust there, was equal to 63.3% of U.S. GDP in 1990, he said. During the Hong Kong bubble in 1997, land values there reached 66.3% of U.S. GDP

In 2012, the total land value in Beijing was 61.6% of U.S. GDP, “which is a scary number”, Mr Mao said.

via Leaked Comments From Top Property Developer: China Is Built Out – China Real Time Report – WSJ.

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