The biggest challenge for China's labor market is its relatively inflexible labor laws and large-scale outward migration of skilled workers, according to the latest report by recruiting expert Hays, published in collaboration with Oxford Economics.

As a result, overall wages will rise and employers will find it more difficult to find qualified workers, according to the study.

The Hays Global Skills Index is billed as a unique and insightful barometer of market dynamics and availability of professional skills in 27 key economies around the world, including China.