China is expected to take the lead in pay increases in Asia this year, given surging demand for talent in high-tech sectors such as life sciences, information technology, artificial intelligence and digital transformation, said a report released by global professional recruiting group Hays Plc.

The report said 44 percent of surveyed employers on the Chinese mainland expect to offer their employees a pay rise of 3 to 6 percent. The number of such employers increased by 5 percent compared with 2021. Another 23 percent expect to offer a pay rise of above 6 percent.

In stark contrast to that, 41 percent of interviewed employers in Hong Kong, 47 percent in Japan, and 45 percent in Singapore plan pay increases of less than 3 percent.

"The Chinese economy showed stronger recovery last year than in 2020. Economic activity is more dynamic, with sectors such as life sciences, technology and digital transformation growing rapidly. As a result, employee mobility and compensation are rising," said Jessica Wang, managing director of Hays China.

Among the surveyed employers on the Chinese mainland, 84 percent plan to raise salaries for their staff in the next 12 months, a percentage on par with Singapore and higher than all other regions in Asia, Wang noted.

She said the economic rebound in 2021 has rejuvenated the job market, and employers in Asia, especially the Chinese mainland, are optimistic and confident about making more investments and expanding recruitment in 2022.

"As the economy is rebounding, employees on the Chinese mainland have much higher expectations of pay rises. As many as 47 percent of respondents from the Chinese mainland expect to have their salary increase by above 10 percent, whereas in 2021, only 3 percent of respondents expected the same," Wang said.

Moreover, 55 percent of the Chinese mainland respondents are open to new opportunities, indicating professionals in China are optimistic about economic prospects in 2022.

The survey interviewed more than 3,000 employers and nearly 10,000 professionals in Singapore, Japan, the Chinese mainland, Hong Kong and Malaysia.

With the strong growth in various sectors, demand for talent is greater. Wang expects the Chinese mainland will see increasing demand for talent in high-tech sectors such as life sciences, IT, artificial intelligence and digital transformation.

Hays also observed many firms are investing heavily in building strong data platforms to enable next-generation business intelligence, particularly in life sciences and financial services.

"As digital transformation sweeps across sectors, all companies are craving IT talent and causing more active flow of talent. The tech sector is hence facing some challenges in recruitment," said Wilson He, senior human resource director at Hai Robotics, a robot maker that enables warehouse automation.

More talent with diverse backgrounds and skills will inject vitality to the tech industry while innovation coming from tech companies will continue to empower more sectors, said He.