Consensus sentiment toward the Chinese economy is hard to pin down. Just a few years ago it was along the lines of “China is invincible.” Recently, this invincibility has gotten some scratches in its armor.
For example, people have recently been observing that the Chinese labor force is shrinking and additionally labor isn’t adding much to GDP growth. According to official figures, there is nothing to worry about though. The unemployment rate has been stable at 4.1 percent for the last three years.
source: tradingeconomics.com
However, Keyu Jin of the London School of Economics now says the Chinese economy is not creating enough jobs.
“Even amid double-digit GDP growth, employment grew at a measly 1.8 percent average annual rate from 1978 to 2004. Households, it seems, have largely missed out on the benefits of economic development in China,” Jin wrote in a post on the World Economic Forum website.
