Unemployment in China
Opponents influence the shape of labor-market regulation; however, foreign-funded enterprises have also become a major source of demand for urban and rural areas migrant workers.
[3] This category also includes those temporarily absent from work due to reasons such as training, vacation, or illness, provided they intend to return within one month.
[4] During specific periods each month, enumerators collect employment and unemployment data from selected households using electronic devices (PADs), reporting directly to the National Bureau of Statistics (NBS) via an online system.
[25] Sectors such as construction, transportation, accommodation and catering, wholesale and retail, residential services, and cultural tourism were significantly impacted, leading to a weakening in labor demand.
[25] The unemployment rate for the primary working-age group (adults aged 25–59) increased by 0.4 percentage points from the previous month, reaching 5.2%.
[25] Among key groups, the unemployment rate of migrant workers with rural household registration, who typically return to the labor market after the Spring Festival, rose by 0.7 percentage points from January to 5.6% in February.
[27] Under this approach, the unemployment rate for the labor force aged 16 to 24 no longer includes students currently enrolled in school, aiming to provide a more accurate reflection of the actual employment situation.
[28] For instance, increased import competition has been linked to significant labor market disruptions in developed economies, highlighting the sensitivity of employment to global trade dynamics.
[29] The adoption of advanced manufacturing technologies has led to a reduced demand for low-skilled labor, as machines and automated systems replace human workers in certain tasks.
[29] Studies have shown that automation can lead to job displacement in manufacturing enterprises, particularly affecting low-skilled positions, while potentially creating opportunities for high-skilled labor.
[30] Research indicates that such industrial upgrading can have significant implications for employment, necessitating policies that address skill development and labor market flexibility.
[31] According to a 2017 economic study, official government statistics show that unemployment in China is unusually low relative to gross domestic product and suspiciously stable.
The study concluded that there was a need for coordination between China's rural-urban migration policy, labor market reform, and trade liberalization measures.
These policies aim to cushion the impact of job loss and facilitate workforce adaptation to economic restructuring and technological advancements.
[39] Unemployment insurance (UI) not only provides immediate financial assistance to individuals but also indirectly supports regional economies by sustaining consumer demand during economic downturns.
[40] Studies have shown that UI can alleviate poverty and reduce economic inequality, contributing to stability in communities with high unemployment rates.
[40] Research indicates that by supporting basic living standards, UI helps prevent extreme poverty among urban populations, particularly in regions facing economic vulnerabilities.
[40] In response to growing skill mismatches amid rapid industrial and technological advancements, the Chinese government has heavily invested in vocational training.
[41] These programs aim to improve the employability of displaced workers, specifically targeting skills required in expanding sectors like automation and service industries.
[41] Research indicates that such training significantly enhances reemployment prospects by equipping workers with relevant skills, effectively reducing structural unemployment.
[42] In alignment with urbanization initiatives, the Chinese government introduced a five-year action plan to enhance job stability for migrant workers, incorporating supportive policies and targeted training.
[43] The plan incentivizes companies to retain employees by providing partial refunds on unemployment insurance contributions for those with low-layoff rates.
[43] Additionally, a national public employment platform and specialized training programs are designed to connect workers with sectors experiencing high demand, such as intelligent manufacturing and domestic services.
[43] The Ministry of Human Resources and Social Security has also expanded an occupational injury insurance pilot program for new employment types, such as the platform economy, which, as of June 2024, covered nearly 9 million workers across seven provinces.
From the late 1990s onward, the Chinese government has attempted to build a scientific, standardized, and modernized labor market, and constructed a public employment service system.
Jobs accessible to young workers tend to be precarious, with low wages and lacking social security benefits such as unemployment welfare and insurance.
[48] As anti-hustle trends gained momentum in China in 2023, Gen-Z youths began opting for lower paying occupations as valid, less stressful career paths even though they were once considered low-quality.
The real numbers might be higher than official data due to the minimum standard of a 70% employment rate and possibly fraudulent reporting by the Ministry of Education.
[51][52] Youth unemployment has stayed elevated since early 2022 as Covid disruptions and a property slump added to already existing structural problems in the labor market.
[54] Numerous sources[55][56] considered this decision to be tantamount to a deliberate coverup of information related to the youth unemployment data point, and a troubling sign for the state of the overall Chinese economy, with The New York Times reporting in August of 2023, "Beijing stopped releasing youth unemployment figures in its latest attempt to play down negative trends as growth stalls, and global concerns grow...",[56] and that, "The decision may be temporary, but it will only make it harder for investors to know what’s happening in the country — and that may be the point.
