Labor market growth likely to be gradual in 2011

The unemployment rate in Asia peaked in late second half of 2009 and has since drifted lower, says UBS.

According to UBS, unemployment rate is important to look at as it gives a hint to a country’s economy and government policies.

Here’s more from UBS:

Strong employment growth usually coincides with strong consumption and investment. The unemployment rate is important to look at because it is a rough measure of slack in the economy and is watched closely by governments and central banks.

High unemployment is associated with a bias for pro-growth policies, in part for political reasons. Unfortunately, we don’t have good employment/unemployment measures for all of Asia, but we’ve provided what is available.

The unemployment rate peaked in late 2H09 and has since drifted lower. Labour market improvements are likely to be more gradual in 2011, compared to that in 2010. But as long as the labour market remains stable, it should continue to support private consumption.

The labour market remains stable, with continued employment growth.

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