Nearly two-thirds of companies in China intend to hire new staff in 2011, according to a report released on Friday by employment service provider Regus.

About 62 percent of employers in China plan to increase their payrolls next year, compared with 36 percent of companies globally, said the Regus Business Tracker Survey.

Unlike other major economies, there seems little pressure for companies in China to cut costs. Only 17.1 percent of the companies surveyed in China will reduce overheads in 2011, compared with the global average of 45 percent, according to the report.

"In China, both local and international companies are extremely confident of the opportunities presented by China's continuing economic emergence, and clearly they expect to increase operations and activities in 2011," Hans Leijten, regional vice-president of Regus, told China Daily.

Leijten said that 78 percent of companies doing business in China expect their revenue to increase over the next year.

The Regus Business Tracker Survey showed that 60 percent of companies in China reported rising revenues in the past 12 months, and 54.5 percent said their profits increased.

The fact that companies are looking to hire additional staff is a significant indicator that the mindset of organizations has shifted toward investment in growth through human capital, said the report.

"One of the biggest trends we have seen over the past year is the fight for the best talent. Top companies around the world are having to increasingly pay extra attention to attracting and retaining the best people," Leijten said.

"However, in China, the recruitment challenge may be particularly difficult," said Mark Dixon, chief executive officer of Regus.

There is growing concern over increasing numbers of new graduates failing to find employment, he said.

Some 11 to 12 million Chinese students will graduate from universities over the next three years, according to the China Talents Development Report 2010 published by China Social Sciences Press.

"For new graduates seeking employment, the best advice is for them to focus on the more buoyant industries," said Leijten

Regus' report was based on a survey of more than 10,000 businesses around the world in August and September.

(China Daily October 9, 2010)