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Special Report

China: From Labor Surpluses To Shortages?

by Qingyun Xu, Associate Editor   Arthur Budaghyan, Head of CoreMacro  

China’s labor market is polarized between high unemployment among university graduates and an acute shortage of blue-collar labor. The high jobless rate among young workers is structural and will not decline a lot even during an economic recovery. Given the structural scarcities of blue-collar workers, the authorities will be less inclined to resort to their old playbook of stimulating infrastructure, construction, and manufacturing.

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