In this comperhensive analytical overview, the author pays particular attention to the changing structure of China's employment towards more private-sector jobs in urban areas; its rising wages and widening earnings inequality; the persistence of labour shortage and rural labour surplus; its more market-oriented wage structure, albeit wit segmentation beetwen firm ownership types; its relatively low unemployment; and the relatively weak role of its traditional labour market institutions, including minimum wages and trade unions. the aim is to contribute to the development of more suitable, China-specific theoretical models and sound policy analysis.