Employers not firing staff, but aren’t hiring either

Over 90% of all businesses surveyed in HSBC's December PMI reported no changes to their headcount.

Comments Donna Kwok, the bank’s economist for Greater China:

“Although unemployment growth is no longer as strong as it was in early 2011, employers have kept staffing levels steady despite new slower new business inflows. Over 90% of all businesses surveyed in HSBC's December PMI reported no changes to their headcount.

The impact that Beijing's earlier tightening measures had on Mainland demand, lackluster US demand and the ongoing sovereign debt crisis will keep local employers on edge in the coming months, making the environment for job seekers more challenging.

Strong domestic demand and inbound tourism should help to counter external headwinds however, allowing the unemployment rate to  end the year between 3 to 3.5%. Hardly a level that would put consumption spending at risk.”