The featured report by AXA Investment Managers’ Macroeconomic Research team, explores how deep structural mismatches are reshaping China’s labour market and raising critical questions for investors.
Key Insights:
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Labour Shortage Meets Slowing Wages: Shrinking workforce and declining industrial jobs drive labour scarcity, yet wage growth remains subdued due to skills mismatches and regional mobility barriers.
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Premature Deindustrialisation Risks: Services now dominate GDP, but early decline in industrial activity may trap China at middle-income levels, echoing challenges faced by Brazil and India.
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Educational Overcapacity: Surplus of college-educated workers faces limited demand, exacerbating underemployment and suppressing wages.
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Policy Imperatives: Solutions include easing migration, upgrading services sectors, and embracing AI and robotics to mitigate demographic headwinds.
Explore AXA IM’s full analysis for insights on navigating China’s evolving economic landscape.
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