Chinese job board 51Job.com continued to feel the effects of an overall slowdown in the Chinese economy in Q2. Revenues increased by just 7.6% to 963 million RMB ($140 million U.S.) — well short of the 30 percent growth rates the company maintained in 2018.

51Job set a revenues target in the range of 915 million to 955 million RMB for the third quarter. The company’s ongoing strategy of cutting clients to “focus more attention on higher potential employers” continued, as total unique employers decreased. Revenue per unique employer increased 20 percent year-over-year in Q2.

Commenting on the results, president and CEO Rick Yan said: “We continue to face tough market conditions in 2019 as economic uncertainty has weighed on companies in China. With employers being cautious about spending and highly selective in adding headcount during this business cycle, we have seen a slowdown in recruitment activity which has affected the growth of our online business.

“In the other HR services area, there has been some resiliency as our HR outsourcing business is making progress after operational adjustments stemming from the implementation of new tax and social insurance regulations earlier this year.”

In December, 51Job publicly rejected claims made by Tianfeng Securities that more than 2 million job ads had vanished from its website in 2018, amid the onset of an economic slowdown.

Founded in 1998, 51Job offers recruitment services to high-level candidates at 51Jingying.com and recruitment services for graduates at the bare-bones Yingjiesheng.com. The Shanghai-based company boasts more than 110 million users.

 

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