In the place I am working at the moment, there is a very noticeable pilot shortage. The wet lease factor is at 19%, the sickness rate is 15% and everybody is flying 900 hours this year. All companies do about it is requiring more and more compromises from the pilots councils and the unions, if such things don't exist, they just do it. FY seems to have lost a considerable amount of pilots this year.
IMHO the airlines are still arrogant enough to employ "the right people". I don't know if authorities or the carriers are to blame, but age discrimination in China is a fact.