How can a country with 1.3 billion people face a workforce shortage?

Ivey Asia Dean Jan De Silva looks at China's changing demographics, its next stage of development, and what this means for Canada in the latest issue of Ivey Business Journal.

HONG KONG, Oct. 15, 2012 /PRNewswire/ -- China is no longer the world's cheap manufacturing base, and is moving up the value chain to become a massive market for consumer goods and services, said Jan De Silva, Dean of Ivey Asia, part of the Richard Ivey School of Business. Rising salaries, the move to urbanization and changing demographics are creating the world's largest middle class consumer market, and companies like GM, The Four Seasons, and KFC and Pizza Hut are among the companies taking advantage of China's changing role.

The article entitled The War for Talent in China, and published in the September/October online edition of the Ivey Business Journal, outlines the changing financial landscape in China and the impact it will have on the world's economy:

• China and Asian growth rates are well ahead of those in the world's developed economies, and, look set to remain highly attractive.
• Consumption of both consumer and capital goods is on the rise, with the Asian middle class being the megatrend of the decade ahead.
• The Asian middle class is expected to expand six-fold, and grow to account for 42 per cent of total global consumption in 2020, compared to only 23 per cent in 2009.

The result of China's growth is an increasing demand for skilled workers, particularly in the finance, insurance and real estate, retail and hospitality and IT at a time when China's labour force will begin to decline by 2015.

"The speed of business growth exceeds the experiential learning curve of most managers – talent and strategic thinking do not develop as fast as the markets are moving," said De Silva. "Companies are investing heavily in training and executive education to shorten the timeframes for developing managers into senior leaders."

De Silva cited the example of Agricultural Bank of China, which sent 26 high potential managers to Canada for one year for an Executive MBA at Ivey and work experience with BMO Financial Group. Since graduating last year, more than half of the program's participants have been promoted.

In the article, De Silva outlined the opportunities for Canada and Canadians.

• Attract more international students from China to Canadian universities.
• Develop internationally capable talent for China operations.
• Make Mandarin a priority in our schools.
• Build on Canada's trade strengths by extending our relationships and interactions with China.

"Currently, our top areas of engagement are: agriculture and agribusiness, energy, green tech, financial services and education. Targeted forums and joint working groups that bring together Canadian and Chinese business leaders in these sectors will improve Canada's understanding of the challenges China faces in trying to address its next stage of growth and will improve China's understanding of Canadian technologies and capabilities," De Silva said. "And, it will strengthen opportunities for us to work together."

The September/October edition of Ivey Business Journal is Leading Through Global Uncertainty and features articles by Barbara Kellerman of Harvard University, and Andrea Lekushoff, President and Founder of Broad Reach Communications.

About the Ivey Business Journal
Since its launch in 1933 as the Quarterly Review of Commerce by Western Business School, the Ivey Business Journal (IBJ) has delivered thought-provoking and progressive pieces written by some of the world's leading management thinkers, consultants and practitioners. IBJ is read by managers, directors, vice-presidents, presidents and C-Suite executives in more than 150 countries and translated into at least 70 languages. Visit IBJ here are www.iveybusinessjournal.com

Media Contact

Amanda Tung
Media Relations – Ivey Asia
atung@ivey.com.hk
(852) 2135 2244 (Hong Kong)

Ivan Langrish
Senior Manager, Media Strategy
Ilangrish@ivey.ca
416-203-0664 (Toronto and London, ON)