'Right talent' in short supply

In 2014, nearly 7.3 million graduates will enter the Chinese job market.

Employers face an "acute shortage" of senior managers who speak both English and Chinese, are willing to relocate and have familiarity with local Chinese business practices, Zhang said.

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A modern vocational education system is needed to address imbalances in the labor market, he said. And business education needs improving to produce upper-management candidates.

A senior manager at French retailer Carrefour SA who declined to be identified said that retail professionals and managers are hard to hire and easy to lose to competitors.

"It is a challenge the whole industry has been facing," she said.

Experienced staff who know the retail sector would greatly enhance efficiency and improve sales, she added.

A manager with an international food manufacturer with many factories based in Dongguan in Guangdong province said the shortage of skilled workers is largely a seasonal phenomenon.

Employers should keep in touch with external recruiters to prepare for increased staff demand during peak times, such as the period before the Lunar New Year. Many migrant workers return home at that time each year, and not all of them return.

She also said it is important for employers to offer professional training, a well-developed career path and psychological support for staff born after the 1990s.