The FTCR China Labour Market Index rose in December, driven by increased demand from the construction and manufacturing sectors. After a relatively soft November, this final reading of the year showed improved demand among hiring managers, with overtime and wages increasing and outlooks at their most positive in eight months.
- Labour demand was strongest in manufacturing, with that sector’s sub-index up 6.5 points from November’s 10-month low to 61.1.
- Construction labour demand also increased in December, with the sub-index rising 3.4 points month on month to 60.3, 5.7 points higher than in the same month last year.
- Demand from the service sector increased at a slower pace than in November. The sector’s sub-index fell 1.9 points to 58.2, just above the 58.1 average recorded over the previous 12 months.
- Labour demand grew at a faster pace than in November.
- Our Labour Demand Index rose 2.6 points month on month and 9.2 points year on year to 63.6.
- The index was above the average 59.9 recorded over the previous 12 months.
- Recruitment managers reported that overtime levels increased at their fastest pace in more than a year.
- Our Overtime Index rose to 54.3, from 50.3 in November, its highest level since November 2015 (71).
- Our survey suggested that hiring managers held a more positive outlook for labour demand in December.
- Our Labour Demand Outlook Index rose 2.3 points month on month to 56.4, the highest reading in eight months.
- The pace at which wages are rising increased, having fallen to a record low in November.
- Our Average Wage Index rose 4 points month on month to 66.6. However, the majority of respondents (62.1 per cent) reported that average wages remained unchanged, the second highest proportion in our series behind October’s 63.8 per cent.
- The average reported wage for blue-collar workers was down 1.5 per cent month on month but up 20.2 per cent year on year at Rmb4,204 ($604).
The FTCR China labour survey comprises interviews with 285 companies across the construction, manufacturing and service sectors. For further details, click here.
This report contains the headline data from the labour survey. The full results, including historical data, are available on our database.
FT Confidential Research is an independent research service from the Financial Times, providing in-depth analysis of and statistical insight into China and Southeast Asia. Our team of researchers in these key markets combine findings from our proprietary surveys with on-the-ground research to provide predictive analysis for investors.