A third of firms in China plan to increase pay by 10%, according to new research from international recruiter Hays.

The data also shows 51% plan to raise pay between 6-10%, while a third of foreign businesses on the Chinese mainland expect to raise wages by more than 10% this year.

Hays says skill shortages are beginning to emerge in sales, engineering and accounting companies in mainland China and Hong Kong.

For more on the region, see Recruiter’s Asia Pacific supplement in the latest magazine and online.