No sign of labour market fragility

Evidence that China’s labour market stayed strong last year should provide some respite from concerns that the country’s economy is collapsing. China created over 13 million new urban jobs in 2015, easily exceeding the official target, against a backdrop of a falling working age population. Wage growth also outpaced growth in GDP. With all the attention recently on China’s financial markets and GDP growth, it’s easy to forget that the labour market is central to the economy’s prospects. Not only is a healthy labour market essential to strong economic growth, but it is also the key focus of a leadership concerned about the potential for social unrest.