CHINESE companies plan to ramp up hiring in the coming year as the economy rebounds and operations return to normal following the country’s optimization of its COVID-19 response, S&P Global said.

The net balance measuring whether Chinese firms project an increase in headcount over the next 12 months was 11% in February, the highest level in eight years, according to an S&P survey.

That compared with just 2% in the last survey conducted in October last year.

A reading above zero indicates optimism regarding the outlook for the coming year, while a value below zero indicates pessimism.

“The relaxation of COVID-19 measures at the end of 2022 led to a notable recovery in the mood of businesses in China,” Annabel Fiddes, economics associate director at S&P Global Market Intelligence, wrote in a statement accompanying the survey report.

Along with the increase in hiring prospects, the S&P report showed business confidence rebounding to a decade high, while the proportion of firms planning to increase investment rose to the highest since October 2021.

“The ongoing recovery in economic activity and reduced disruption to operations and supply chains were widely expected to drive growth,” Fiddes said, adding that “firms also anticipate supportive State policies, increased tourism and new product releases to boost activity over the next year.”

There are still some lingering concerns, however, including rising costs, uncertainty over the Russia-Ukraine war and falling foreign demand, the surveyed firms said.      (SD-Agencies)