china factoryChina's official unemployment rate fell to 4.1% in
September, from 4.2% the month before according to the Ministry
of Human Resources and Social Security. This is also lower than
the 4.3% unemployment rate recorded at the end of 2009 according
to China Daily.  Yet while the Chinese unemployment rate is low
by U.S. or European standards (Official American unemployment is
9.6% based on the BLS.), it isn't that far below the
government's 4.6% ceiling rate.  The nationwide unemployment
rate also doesn't capture the situation faced on a regional
basis.  Given sharp wage inflation in China's coastal and most
developed regions, which Andy Xie even thinks could continue at
a 15% annual rate, in some places the supply of labor is clearly
extremely tight, while in the far western regions the situation
could be the exact opposite.