Quanton Data shows that the number of job posting from large Chinese company is decreasing significantly almost all the sectors since November 15. Moreover, in January, China factory activity hit a three-year low. I'm curious that what bring on this phenomena. Behind this phenomena, what really happened in Chinese economy and how will it affect the economy in the future?
http://www.businessinsider.com/china-job-postings-declining-since-november-2016-2
This decrease in the number of job posting can be attributed to the three-year low in Chinese factory production, according to the article. Manufacturing as a whole also decreased as a whole in 2015. It will be interesting to see how manufacturing and job postings in China bounce back in 2015.
ReplyDeleteWith this decrease in job production, China clearly understands that something must be fixed. Several days ago, they ousted a top regulator, the head of the China Securities Regulatory Commission. In addition to this, they also devised a plan to strengthen the economy, as they have substantial global significance, being the second largest economy in the world.
ReplyDeleteI agree with Charlie that the decrease in the number of job posting can be attributed to the three-year low in Chinese factory production. Overall China's economy has been struggling, but some experts believe that the economy will begin regulate in the next couple of years.
ReplyDeleteThe article states that manufacturing has been on a low in 2015. Since production was at a three period low and constant decline it makes sense for there to be a decrease in the job postings. Since labor is a derived demand so a decrease in the demand for the final product will cause a decrease in the demand for labor who produce it. It wont be surprising for the decline to continue if the demand for the final product keeps on declining too.
ReplyDeleteThe article states that manufacturing has been on a low in 2015. Since production was at a three period low and constant decline it makes sense for there to be a decrease in the job postings. Since labor is a derived demand so a decrease in the demand for the final product will cause a decrease in the demand for labor who produce it. It wont be surprising for the decline to continue if the demand for the final product keeps on declining too.
ReplyDeleteI think the decline in manufacturing job is related to the government's plan of switch the economy from low end manufacturing and export dependent to a consumer based and value added economy. The low end manufacturing job have moved to lower wage. The percentage of service industry takes in GDP is expanding slowly over time. (from 40.8%(2004) to 48.2%(2014).)
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