Asia, China, North Asia discussed on Bloomberg Radio New York Show


I'm John Tucker in New York with your global ahead of the top stories for investors in the coming week The U.S. and European economies appear to be coming out from under the thumb of the latest COVID wave Still a mixed picture in Asia though and for borrower let's go to Bloomberg daybreak Asia host Doug Krishna John many countries in Asia are facing a spike in COVID cases following the lunar new year holidays and now job markets across the region are taking another hit We want to take a closer look so we bring in and a current Bloomberg's chief Asia economics correspondent who joins us from Hong Kong And it's always a pleasure I think we've got to start with the fact that labor markets in north Asia were just beginning to recover from the impact of the delta variant and now we're dealing with oma cron what do we know about the extent of the impact on employment right now throughout north Asia Well the big concern among a lot of analysts is that Asia hasn't yet had the big wave of omicron that other parts of the world have had So the concern is that when it does start sweeping through the region there will be a hip to the serves as in the consumer kind of sectors of the economy those front line kind of jobs And we are seeing some pain there for example in China which of course has kept its borders closed and is keeping the virus out It is also dealing with sporadic outbreaks of the virus that is impacting consumer confidence and that's why we're seeing through alternative indicators and our build reports that unemployment in China is actually worse than the official monthly figures are showing as I say that's reflecting weaker consumer spending on the COVID control measure But nonetheless China to stand out when it comes to success and containing the virus but even there the jobs market is weak Now it can be a bit more complicated in other tariffs Take Korea for example the unemployment rate in South Korea is increasing and that's as the country by the way is in the middle of its worst covered way But that apparently reflects an increase in the participation rate of some people looking to get back into the workforce Nonetheless people are keeping a close eye on how to overcome impact social distancing there Over the coming weeks and months And likewise in Japan as you mentioned there was some sign of healing before the virus drug would matter some pressure on the servicing consumer sector there as they continue to bottle their conveyance So I would say to you that there was some progress towards in the last year which will now depend on how deep and how wide it's very internal spread in Asia over the coming months I want to pivot back to China very quickly here and look at the distribution when we're talking about the manufacturing economy and some of these industrial centers that were forced to lock down juxtaposed to some of the services industries Do we need to really kind of drill down on this to look at how let's say the industrial component and the employment picture there has been hit as a different than what we're seeing play out in services at all I think it's a good question though I mean the service industry is the biggest source of jobs in China China is about half of the labor force And so you can imagine what's going on in terms of disruption to travel We just a Chinese New Year The biggest holiday of the year but of course it was quite subdued People are told not to travel and stay at home on the like So that's having a knock on impact The manufacturing part of the economy isn't obviously the driver that it once was But it's still an important source of both growth and economic employment And while that's been going well broadly speaking we have seen some of the weakness in gauge I'd like to PMI indexes for example hints there all of them softening at the margins businesses related to higher new workers under like So there isn't really a great official gauge of data on China with employment in a reflectively advanced side of their economy there We have to rely on a fairly partial labor survey but at the same Jude indication that people are reading into alternative indicators or other build reports to suggest unemployment is worse there than the multi figures show And that's why we often hear the government talk about prioritizing job creation which suggests that they are aware of the pressures out there too What do we know about the vaccination if we look at South Korea Japan and China those three countries is it pretty evenly distributed in terms of vaccination rates Well China's vaccination rate I think is well over 80% And that's because they've been pushed hard and they pushed arity by getting the population vaccinated Dog in a very systematic way obviously led by the government system that they have Over the concerns there are whether or not the Chinese homegrown vaccines are as effective as the mRNA or the western vaccines So we'll have to see here that played by that's why actually people get concerned about what it also would end past is for China It's hard to believe we're entering the third year of this pandemic and a thank you so much always a pleasure and a current is the chief Asia economics correspondent for us at Bloomberg joining us from our studios in Hong Kong I'm Doug Krishna you can join us weekdays for Bloomberg daybreak Asia beginning at.

Coming up next