China job squeeze to have global repercussions

China is facing a job problem too. Excerpt from The Straits Times report "China job squeeze to get even tighter" yesterday:

China's unemployment squeeze looks set to worsen in some sectors in the second half of the year, with over two million workers expected to lose their jobs as companies go bankrupt or undergo restructuring, state media reported yesterday.

Economic growth was also creating fewer jobs while stoppages at several industrial projects in recent months "had a negative impact on creating job opportunities", the China Daily reported yesterday, quoting several officials.

Because of China's excess labour supply, it sucks up the world's jobs, especially in manufacturing. In doing so, China floods the world with cheap goods and exports deflation to the rest of the world.

If China faces an unemployment squeeze, it can only get worse for the rest of the world.