Even as China’s economy continues to show signs of a slowdown, Beijing has avoided rolling out any big new stimulus programs; that’s in direct contrast to its pump-priming response during the 2008 global financial crisis.
Why the apparent lack of worry? It’s got everything to do with jobs. In the first quarter, China created 3.44 million new urban jobs, 40,000 more than a year earlier. China has said for the full year it wants to create at least 10 million new positions—that target now looks easily reachable.
“GDP growth has halved since peaking above 14 percent in 2007. But, with a greater share of output coming from more labor-intensive sectors, and the economy itself much larger, more new jobs are being created today,” wrote economists Mark Williams, Qinwei Wang, and Julian Evans-Pritchard, at London-based Capital Economics, in a May 2 note.
via Why China Isn’t Worried About Slowing GDP: Jobs Strength – Businessweek.
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