China's employment outlook is becoming “grim”, say officials, as the global financial crisis triggers fresh factory closures in the export sector.
Urban unemployment has begun to rise and will increase next year, Yin Weimin, minister of human resources and social security, said yesterday.
“Stabilising employment is the top priority for us right now,” said Mr Yin, in comments reflecting growing worries about the potential threat to social stability.
“The current situation is grim, and the impact is still unfolding,” he said. “Since October, our country's em- ployment situation has been affected along with changes in international economic conditions.”
China's official urban unemployment rate is 4 per cent. But this figure includes only registered urban residents. Tens of millions of rural migrants who have moved to cities to work in factories over the past decade are generally not included in unemployment data if they lose their jobs.
The national economy has been slowing gradually since the start of the year. However, the pace at which it is cooling accelerated sharply in September and October, prompting a steep drop in confidence among companies and some consumers.
Even when the economy was growing strongly, China witnessed a stream of localised protests. Recent trouble has included strikes by taxi drivers in three cities and rioting in a city in Gansu province this week.
Statements by Chinese leaders have shown they are worried about the social impact of a sharp downturn. In an article in a Communist party magazine this month, Wen Jiabao, the premier, said: “We must be crystal clear that without a certain pace of economic growth, there will be difficulties with employment, fiscal revenues and social development . . . and factors damaging social stability will grow.”
This week, two provincial governments announced measures aimed at deterring businesses from laying off workers. Hubei and Shandong said companies trying to lay off more than 40 staff would need prior approval from the local authorities.
责任编辑：虫虫
