China's shrinking labor force may slow rebound

Declining numbers in China’s labor force could limit the country’s economic rebound, Bloomberg reported. The growth rate of 7.9% in the last quarter of 2012 reflected an economic climate with a shrinking labor pool, Ma Jiantang, chief of the National Bureau of Statistics, said on January 18. A fall in the working-age population was significant, according to Ma. Last year the labor force fell by 3.45 million, leaving a total of 937 million laborers, which Ma still considered China’s “biggest resource advantage.” He said at a press briefing that 7 – 8% GDP growth will mean a change in growth drivers and economic restructuring, with urbanization and industrialization spurring expansion. Ma’s remarks supported the contention that Beijing is permanently reducing growth expectations as its one-child policy reduces the working population.