Unemployment to remain a headache in China

Unemployment to remain a headache in China
www.chinanews.cn 2007-08-07 16:16:30







Chinanews, Beijing, August 7 – According to a report by the People's Daily Overseas Edition, unemployment might remain a headache in China in the next 15 years, as the demand for jobs has been greatly underestimated.

Some people say that China will face labor shortage by 2009. However, statistics show that there is still a large surplus labor force of at least 120 million people in the rural areas, while many laid-off workers and college graduates in cities are badly in need of jobs. In fact, nearly 12 million Chinese might not find jobs every year.

The baby boom in the 1960s and 1970s has guaranteed China an abundant labor force, as able-bodied working people have long taken up 65% of its population. During the 11th Five-Year Plan Period (2006 - 2010), more than 20 million young people will enter the labor market, while some 4 million laid-off workers also need jobs.

If China can maintain its rapid economic growth of 8% or 9% every year, it will be able to provide 8 or 9 million new job vacancies. Even added to the posts released by retirees, there will only be some 12 million jobs available every year, which is still far from enough.