China Wages End Two Quarters of Gains, Adding Deflationary Risks

  • Salaries offered to new hires decrease 0.6% from a year ago
  • Weak labor market risks worsening pressure on price declines
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Wages offered to new hires in China declined after two straight quarters of gains, in a sign of a weakening labor market that’s exacerbating persisting deflation and weighing on economic growth.

Average monthly salaries offered by companies to new recruits in 38 key Chinese cities fell 0.6% in the third quarter from a year ago to 10,058 yuan ($1,423), according to data provided by online recruitment platform Zhaopin Ltd. and compiled by Bloomberg. The decrease follows a modest uptick of 2.2% and 0.5% in the first and second quarters, respectively.