Zhaopin and Renmin University Jointly Publish First Quarter 2016 China Employment Index Report

BEIJING, May 10, 2016 /PRNewswire/ -- Zhaopin Limited (NYSE: ZPIN) ("Zhaopin" or the "Company"), a leading career platform in China focused on connecting users with relevant job opportunities through their career lifecycle, and the China Institute for Employment Research at Renmin University today released  the CIER Employment Index Report for the first quarter of 2016 (January 1 through March 31, 2016). The CIER Index Report reviews and identifies trends in China's employment market.

A CIER index score of more than 1 indicates that confidence is high for job seekers seeking employment. A CIER index score of less than 1 indicates that confidence for job seekers seeking employment is low.

The CIER index score for a period is calculated with data from zhaopin.com by dividing the number of job vacancies during a specified period by the number of unique job seekers that apply to jobs during the same period. Data in the calculation is derived from Zhaopin's online platform.

1. Adjusted CIER index indicates weaker employment confidence during the first quarter of 2016

Demand in China's labor market continued to exceeded supply during the first quarter of 2016. The CIER index for the first quarter of 2016 decreased to 1.71 from 2.09 during the seasonally strong fourth quarter of 2015.  

Excluding the effects of seasonality and changing demographics which have traditionally resulted in a long-term increase in CIER index scores, quarterly adjusted CIER index scores continued to decrease during the first quarter of 2016, indicating weaker employment confidence.

According to Zhaopin's data, total online recruitment demand slowed, increasing by 4% year-over-year during the first quarter of 2016, compared with 19% during the same period last year. China's labor market has been significantly impacted by the "New Normal" as demand from  traditional industries as well as some emerging industries slows.

2. Employment confidence remains strongest in China's emerging service sector and weakest in traditional manufacturing and services.

The ten best and worst performing sectors in the economy during the first quarter of 2016 remained largely unchanged on a sequential basis. The CIER index for the ten best performing sectors were all above 2.5 except the farming/forestry/animal husbandry/fishery sector. The CIER index for the ten worst performing sectors were all lower than 1.0, indicating excess job seekers in these sectors.

The majority of the ten best performing sectors are part of China's emerging services sector and include jobs in e-commerce and finance. The ten worst performing sectors related to traditional manufacturing and services, and include jobs in accounting/auditing, aerospace research and manufacturing.

Ten best performing sectors of 1Q16

Ten worst performing sectors of 1Q16

3. Recruitment demand from the financial^[1] sector continued to increase as a result of favorable government policies

Total recruitment demand from the financial sector during the first quarter of 2016 increased by 21% year-over-year, the fastest growth rate among all sectors. Growth within the financial sector was mixed with recruitment demand from funds/securities/futures/investment and banking increasing 23% and 19% year-over-year, respectively, while recruitment demand from trust/warrant/auction/pawn decreased by 9% year-over-year. The Chinese government's annual work report to the National People's Congress in March 2016, proposed increased regulation and support of the fast-growing Internet finance sector which is expected to create new growth opportunities and demand for talent.

Year-over-year change in recruitment demand from the financial sector in 1Q16

Year-over-year change in recruitment demand from the financial sector across various regions in China in 1Q16

4. Recruitment demand from sub-sectors in IT and Internet^[2] sector was mixed

Total recruitment demand from the IT and Internet sector during the first quarter of 2016 increased 20% year-over-year as a result of the government's 'Internet Plus' initiative. Within the IT and Internet sector, recruitment demand from sub-sectors was mixed, with a 39% increase in E-commerce, a 13% decrease in computer hardware and a 12% decrease in IT service sector on a year-over-year basis. E-commerce is still the most popular sector for job seekers who are considering job opportunities in the IT and Internet sector. However, given the economic slowdown and decline in manufacturing industries, some sub-sectors within the IT and Internet sector such as computer hardware, are seeing demand soften.

Year-over-year change in recruitment demand from the IT/Internet sector in 1Q16

Year-over-year change in recruitment demand from the IT/Internet sector across various regions in China in 1Q16

5. Recruitment demand from trade/import & export sector increased steadily, while recruitment demand from durable consumer goods, automobile/motorcycle and fast-moving consumer goods sectors dropped

In the first quarter of 2016, recruitment demand from the trade/import & export sector increased 19% year-over-year. The Chinese government continued to roll out a number of initiatives to support import & export trading, including the development of experimental Free-Trade Zones in China. The Belt and Road Initiative, a significant development strategy and framework launched by the Chinese government intended to promote economic co-operation among countries in Eurasia, is also expected to bring about more international trade and create more job opportunities.   

Demand from the durable consumer goods, automobile/motorcycle and fast-moving consumer goods sectors during the first quarter of 2016 decreased 20%, 16% and 15%, respectively, year-over-year. The Chinese government's top priority in 2016 is to reduce excess industrial capacity which will result in job cuts in related industries.

Year-over-year change in recruitment demand for different sectors in 1Q16

6. Employment situation better in Eastern China

Recruitment demand in Eastern and Central China during the first quarter of 2016 increased 5% and 1%, respectively, year-over-year. Western China is home to many labor and energy intensive companies as well as traditional manufacturing, which were significantly impacted by government's reduction in excess industrial capacity. Recruitment demand during the first quarter of 2016 in Western China decreased 3% year-over-year.

Year-over-year change in recruitment demand from different areas of China in 1Q16

7. Recruitment demand increased in first-tier, almost first-tier and second-tier cities

During the first quarter of 2016, recruitment demand in first-tier cities increased 10% year-over-year, the highest growth rate among different tier cities. Recruitment from almost first and second-tier cities also increased on a year-over-year basis, while third-tier and below cities saw a decrease in recruitment demand in the first quarter of 2016.

Year-over-year change in recruitment demand from different tier cities of China in 1Q16

8. Stronger employment confidence seen in micro-and-small companies

As a result of government policies designed to drive innovation and entrepreneurship, micro-and-small sized companies have demonstrated greater growth potential and therefore greater demand for labor. During the first quarter of 2016, recruitment demand from micro-sized companies increased 22% year-over-year, while small-sized companies increased 14% year-over-year. Mid and large-sized companies are being impacted by the economic slowdown and government initiatives to reduce excess industrial capacity, destocking and de-leveraging, resulting in limited recruitment demand.

Year-over-year change in recruitment demand from different sized companies in 1Q16

9. Recruitment demand from joint-stock and private companies increased as demand from public institutions decreased

 The CIER index for various types of companies during the first quarter of 2016 were (from highest to lowest):

The CIER index score for private companies was highest during the first quarter of 2016, while public institutions saw the lowest CIER index score.

During the first quarter of 2016, recruitment demand from joint-stock and private companies increased 12% and 8% respectively, year-over-year, while recruitment demand from public institutions, wholly foreign-owned enterprises and SOEs decreased 25%, 23% and 20%, respectively.

10. Market outlook

Quarterly CIER index scores are expected to continue to decrease in the second quarter of 2016.

About Zhaopin Limited

Zhaopin is a leading career platform in China, focusing on connecting users with relevant job opportunities throughout their career lifecycle. The Company's zhaopin.com website is the most popular career platform in China as measured by average daily unique visitors in each of the 12 months ended December 31, 2015, number of registered users as of December 31, 2015 and number of unique customers for the three months ended December 31, 2015. The Company's over 109.7 million registered users include diverse and educated job seekers who are at various stages of their careers and are in demand by employers as a result of the general shortage of skilled and educated workers in China. In the fiscal year ended June 30, 2015, approximately 25.6 million job postings^[3] were placed on Zhaopin's platform by 418,423 unique customers including multinational corporations, small and medium-sized enterprises and state-owned entities. The quality and quantity of Zhaopin's users and the resumes in the Company's database attract an increasing number of customers. This in turn leads to more users turning to Zhaopin as their primary recruitment and career- related services provider, creating strong network effects and significant entry barriers for potential competitors. For more information, please visit http://www.zhaopin.com.

Safe Harbor Statements

This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995.  These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Zhaopin may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Any statements that are not historical facts, including statements about Zhaopin's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: Zhaopin's goals and strategies; its future business development, financial condition and results of operations; its ability to retain and grow its user and customer base for its online career platform; the growth of, and trends in, the markets for its services in China; the demand for and market acceptance of its brand and services; competition in its industry in China; its ability to maintain the network infrastructure necessary to operate its website and mobile applications; relevant government policies and regulations relating to the corporate structure, business and industry; and its ability to protect its users' information and adequately address privacy concerns. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Zhaopin does not undertake any obligation to update such information, except as required under applicable law.

For more information, please contact:

Zhaopin Limited
Ms. Daisy Wang
Investor Relations
[email protected]

Christensen

In China
Mr. Christian Arnell
Phone: +86-10- 5900-1548
E-mail: [email protected]

In U.S.
Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: [email protected]

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SOURCE Zhaopin Limited