Jobs Report In China Keeps Beijing From Lowering Rates; Employment Reports Factor In Differently Than They Do In The US

China’s ratio of job opportunities to the demand for labor held steady at 1.05 during the third quarter.
Wages are increasing, causing per capital disposable income to increase 12.5% over the period.
The contrast is sharp between the third quarter 2012 and the end of 2008 when 20 million migrant workers were sent home because of factory shutdowns.
In China, economic growth is the means to social stability and employment. Since employment is strong, Chinese leaders see no need for further stimulus.
China’s employment report does not offer the detail of the US report and labor market data is patchy.
But the balance of evidence shows that China’s employment and wage growth pictures are on track despite the slowdown in its economy.
That’s positive for growth in China and negative for investors betting on further rate cuts.

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