Downturn in Q4 drags down labor market
Updated: 2014-11-18 14:16
By Chen Jia(chinadaily.com.cn)
|
|||||||||||
China's economic downturn has extended to the fourth quarter, which has deteriorated the domestic labor market, adding pressure on policymakers to boost growth, a report from Standard Chartered said on Tuesday.
The bank's research on sample companies has shown that the impact on employment began with slower wage growth over the past six months, mainly driven by cooling manufacturing and housing investment.
"This has now extended to rising layoffs and plans to freeze wages in 2015." A continually softened labor market may drag down consumption and further decelerate the overall economic growth, it said.
Li Wei, a researcher at the Standard Chartered Bank (China) Ltd, said: "Given Beijing's low tolerance for a deteriorating labor market, we believe we are reaching the point where monetary policy – the most effective way to boost short-term growth – will have to be eased aggressively."
According to the National Bureau of Statistics, in October, the growth of industrial output slowed to 7.7 percent year-on-year, down from 8 percent in September; the fixed-asset investment increased by 15.9 percent during the first 10 months, compared with 16.1 percent from January to September.
The report predicted that policymakers may cut the one-year benchmark deposit rate by 25 basis points before the year end. And there may be another cut in the first quarter next year.
Top 10 Internet companies by market value | Shanghai-Hong Kong Stock Connect kicks off |
Related Stories
China eyes higher labor quality to spur growth 2014-08-01 14:28
China, 'world's factory', lacks skilled workforce, govt think tank says 2014-05-16 09:09
Pearl River Delta loses charm with HK businesses 2014-07-19 07:01
Guangdong companies still short of laborers 2014-02-27 15:48
China Oct data shows economy cooling further 2014-11-13 15:15
China's industrial output slows to 7.7% in Oct 2014-11-13 14:00
Today's Top News
Deal set to boost food cooperation
Russia in upgraded war of words with NATO
Recovery MH17 wreckage to be completed in five days
Suspicious package prompts partial evacuation of British parliament
V4 countries decide to offer Ukraine help
Oil reserves to be published regularly
China stocks rise with Shanghai-HK stock connect launch
Chinese weapons winning battle for int'l market
Hot Topics
Lunar probe , China growth forecasts, Emission rules get tougher, China seen through 'colored lens', International board,
Editor's Picks
Blue skies ready to greet APEC |
Growth pangs |
Sea change |
'Old newcomers' |
General aviation hub reaches for the sky |
Endangered species threatens livelihoods |