We have long doubted China’s official GDP data. Now we turn our attention to China’s labour market data. Over the past ten years or so, the headline unemployment rate has fluctuated between 4.0% and 4.3%. We find it implausible that the degree of slack in China’s labour market can appear so rigid, at a time when the pace of economic growth in China has varied enormously. Here we introduce our own, top-down measure of the amount of spare capacity in China’s labour market. Our China Underemployment Indicator (or CUI) suggests that the degree of underemployment in China may have trebled