The Impact of Growth in Manufactured Imports from China on Employment in Australia*

Abstract

We examine how rapid growth in imports of manufactured goods from China affected employment in Australia from 1991 to 2006. Alternative sources of variation in Chinese import exposure (at industry level and between local labour markets) are used to identify the effect on employment. Growth in imports from China is estimated to have reduced manufacturing employment by around 53,200 to 78,900 workers, representing 5.3 to 7.5 per cent of that workforce in 1991. Largest impacts are found for manufacturing industries most exposed to import competition from China; and from 2001 to 2006 when import growth was strongest.