China’s artificial intelligence (AI) sector is experiencing a paradoxical situation: while the industry thrives and innovation accelerates, a significant talent shortage looms. Positions such as algorithm engineers, recommendation algorithm experts, large language model (LLM) specialists, and natural language processing experts are in high demand, yet the supply of qualified candidates fails to meet this growing need.
The shortage is particularly acute in cloud computing, where the supply-demand ratio stands at a mere 0.27. This statistic highlights the alarming reality that there are nearly four job openings for every qualified candidate in this crucial field. Major tech firms like Alibaba have reported that six of the ten roles with a supply-demand ratio below one are related to AI.
As China continues to drive innovation in AI technologies, the escalating focus on generative AI has ignited a fierce talent war among its leading tech companies. In 2024, ByteDance emerged as the frontrunner in job creation, with 25% of job openings among the top 20 new economy roles listed on Maimai being AI-related. This trend indicates a significant shift towards AI specialization within the labor market.
Compounding this issue, recruitment platforms are seeing extraordinary offers for top positions. A recent listing on Liepin advertised an annual salary of up to 5 million yuan (approximately US$686,000) for a large language model team leader in Beijing. Such lucrative offers reflect the competitive landscape for AI talent, where organizations are willing to invest heavily to secure expertise.
In addition to cloud computing, search algorithm roles also face a tight market, with a supply-demand ratio of 0.39—equating to more than two openings per candidate. The domestic labor market remains challenging, presenting more than two jobseekers per available role overall. This reality underscores the complexities tech companies face as they seek to meet their staffing needs while navigating a competitive environment.
Chinese tech giants are increasingly looking beyond their borders to tap into overseas talent as they expand into international markets. With the average monthly salaries for top-tier professionals rising slightly in 2024 to 42,874 yuan, attracting skilled workers from abroad has become an essential strategy for many firms.
The new energy vehicle industry is another area experiencing fierce competition for top talent. As these sectors grow and evolve, the demand for skilled professionals continues to rise, exacerbating an already strained domestic labor market.
Featured image courtesy of Columbia Business School
