Biggest Economies: China Economy Slows leading to employment hurdles
On Thursday, China’s top executive group provides insight on severe unemployment issues their country faces. That at least is within the labor-intensive industry. Comparing with other countries, the unemployment rate in China is still lower. However, Officials say currently, Chinese people shown challenges on their ability to hold jobs.
Economic researchers in China’s top executive body provides notable information on Thursday. It points out that the economic slowdown in the country creates difficulties in national employment.
Zhang Liqun, a fellow researcher at the Macroeconomic Department of the Development Research Center of the States Council also comments on the issue. Liqun says as translates during the press event in Beijing, “When we look at the downward pressure on the Chinese economy, what we care most about is employment.”
The Unemployment rate in Beijing
Handling employment is critical for Beijing. It helps maintain control on over a massive country having more than a billion people. A broad job loss could drive an undesirable social anxiety.
The country’s unemployment says lower comparing with others. It was at about five percent or lower. However, according to official reports, the tenacious uncertainty regarding the accurateness of the data begins to show challenges.
On Thursday during the press, Zhang comment on-the-record provides great insights. Especially in pointing out how severe the issue of unemployment could be. That of at least within the labor-intensive industries.
Zhang says as translate at the press, “Many of the companies in Guangdong province have permitted leave for their employees since November – many of the export companies.” He added, “That has something to do with the U.S.-China trade frictions.”
Zhang also says, “Many of these companies think they have done what they can do before November and they are not planning to organize further production after that.”
Economic tension
Meanwhile, tensions among the world’s largest economies escalated last year. Both put a tariff on goods worth billions of dollars from the other country. Guangdong province, in particular, was affected. That because of its greater exposure on manufacturing and other export-oriented business.
Zhang additionally notes the trade tensions which cause a few companies in industries to transfer operations outside China. He adds that the development of technologies creates a challenge for people that are getting replaced by machines.
As China engages in slowing growth, making sure that its people have jobs also holds financial imperative. Zhang says, ”(Beijing’s) social policy focuses very much on employment.” And he added, “and gives priority to the basic well-being of the people, which (has a lot to do with helping) stabilize the consumption.”
