This paper outlines the evolution of fiscal and monetary policies in China in conjunction with of labour market developments. It examines employment trends in China since the 1978 Economic Reforms – or “Reform and Opening Up” policies – along with the reorientation of macroeconomic policies in line with the transition from a planned to market economy. The authors argue that the increasing openness of China’s economy has resulted in a shift away from solely focusing on macroeconomic stability to supporting employment objectives as well.