Better Labor Market

Pressure on China’s labor market is showing signs of easing, according to the 2016 Global Skills Index by Hays, a global human resources consultant firm that assesses efficiency of skilled labor markets in 33 countries.

The data suggested that risks of a hard landing of the Chinese economy have abated, thanks to improving exports and steady infrastructure investment that offset downward pressure. Seven indicators, including labor market participation and wage pressure, make up the ranking. Each indicator receives a score on a scale of zero to 10. A score closer to zero means almost no pressure, while a score closer to 10 suggests severe pressure. China ranks 31st out of 33 countries, suggesting robust labor market performance with an overall score of 4.3, down from 4.7 last year.

“Easing pressures in China are due to slower economic growth, higher labor market participation rates and reducing wage pressure,” said Simon Lance, Managing Director of Hays in China. The index shows that in China, pressure on labor market mainly comes from “labor market flexibility,” which measures the legal and regulatory environment faced by businesses, in which China scored 8.1.