Slower China GDP growth in 2015 seen accelerating reform
Larger economy and expansion of more job-intensive services sector are key factors in generating employment despite lower GDP growth target
A gradual slowdown in economic growth will keep the mainland's job market resilient this year, leaving room for the leadership to accelerate reforms, analysts say.
However, the challenges are mounting for the mainland to upgrade industries and boost productivity before enough positions are created for more skilled workers. The job outlook may remain dim for university graduates in the New Year.
"I am confident that the government will continue to strike the right balance between structural imperatives and cyclical pressures," Stephen Roach, a Yale University professor and former Morgan Stanley Asia chairman, told the South China Morning Post.
The government "will be able to comfortably achieve the 7 per cent growth objective that is likely to be clarified" at the National People's Congress meeting in March, he said.
Economists broadly expect the central government will target gross domestic product growth of 7 per cent in this year as the potential growth rate cools along with a shrinking urban labour force.
But policymakers only need to generate GDP growth of 6.5 per cent to create more than 11 million new urban jobs, thanks to the growing size of the economy, which is about 50 per cent larger than in 2008, and an expanding services sector, which has seen its share of GDP rise to 46.7 per cent from 46.1 per cent at the end of 2013.