Chinese officials say employment situation 'grim'

24 November 2008

Chinese officials have said that the global economic crisis has taken a toll on its economy and country is facing the grim prospect of growing unemployment with many company's resorting to massive layoffs which could lead to social unrest.

Yin Weimin, minister of human resources and social security, speaking at a press conference held by the State Council Information Office, said that the global slowdown has impacted the export industry as well as small and medium firms which has seen massive layoff due to shutdowns and now labor unrest of rural migrant workers is the ministry's "top concern".

He said that the employment scenario in the country is 'grim' and demand for workers is declining at a alarming pace with people looking for jobs in cities outnumbering new jobs by two-to-one.

According to Chinese officials, unemployment was worse in the month of October and is likely to go down further in the first quarter of 2009 with China experiencing a stable growth of 4 per cent during the first six months but became worse last month and jobless figures could hit 4.5 per cent by the year-end.

China's economy grew by 9 per cent in the third quarter after an explosive 11.9 percent growth last year but with the present global economic situation, it could further decline, warn economist.

As growth declines, the number of educated Chinese will grow from 5.59 million this year to 6.1 million next year and as 24 million from rural areas seek jobs in cities which can cater to only 12 million jobs.