China's Unemployment Challenge
Unemployment in China has risen sharply in recent years. This year, China's registered jobless rate climbed to 4.2 percent by the end of June, with 7.95 million registered unemployed in the country's cities. The Ministry of Labor and Social Security issued the latest rate, which was 0.2 percentage points higher than at the end of last year. The government is aiming to keep the jobless rate below 4.5 per cent this year. But the registered unemployment rate by the government only includes those who become unemployed due to the bankruptcy of their former enterprises, and who have registered at related government labor departments. Laid-off workers from state-owned enterprises (SOEs) were not included, because they have labor contracts. Those who do not have legal residence status (hukou) were not included either. If these workers were added, the actual unemployment rate in urban areas is more like 7--8%, which is sufficiently serious. The tough situation is caused by a combination of factors, including SOE reform (which led to xiagang or layoffs), WTO related structural adjustment, and rising new entrants to the labor force. 1."China's labor and social security situation" (hereafter referred to
The government plans to develop its rural economy at a faster pace to create more job opportunities for farm laborers. It will also axe all kinds of restrictions that impede rural surplus laborers as they seek jobs in the cities. It is obviously to see that many urban job seekers will be disappointed this year because of the lack of job vacancies. About 24 million new urban laborers, workers laid off from State-owned enterprises and registered jobless people have been swarming into job fairs but 10 million openings at most will be available by the end of this year. China's service sector was once a key element for providing jobs for new people coming into the workforce, but it experienced a sharp downturn during the SARS period. Catering, commerce and social services were the worst hit by SARS. Many small and medium-sized enterprises had to shut down and this inevitably led to a sharp decrease in demand for workers. SARS slowed down the growth rate of the income of urban and rural residents and forced between 7 million and 8 million laborers from rural areas to return to their hometowns. It said the per capita income of China's farmers was reduced by about 35 yuan (US$4.50) in the second quarter of this year.
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Approximate Word count = 991
Approximate Pages = 4 (250 words per page double spaced)
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