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Employment increasing at healthy rate

By Sun Wenkai | China Daily | Updated: 2019-07-31 08:08

Towers rise up into the sky in this view of Shenzhen's central business district, June 7, 2019. [Photo/VCG]

This year's Government Work Report mentions employment several times and the State Council, China's Cabinet, has established a leading group on employment, reflecting the government's commitment to creating jobs.

According to the Government Work Report, China aims to create more than 11 million jobs this year and keep the urban surveyed unemployment rate below 5.5 percent and registered urban unemployment rate below 4.5 percent.

The National Bureau of Statistics' latest data show urban employment increased by 7.37 million in the first half of this year. Which means the government has fulfilled 67 percent of its annual target in six months. For the record, the urban surveyed unemployment rate in July is estimated to be 5.1 percent. As such, it is not difficult for China to realize the employment goal set in the Government Work Report. In fact, as long as China's economic growth rate is 6 percent or above, it can create enough demand for labor as well as transition from quantitative growth to qualitative development.

But the job market also faces some pressure. About 7.52 million jobs were created in the first half of 2018. And the fact the figure for the first six months of this year is lower than last year's suggests the pressure on the job market this year is more than last year.

About 8.34 million new college graduates and 2 million migrant workers are expected to enter the job market this year. If we add to that the veterans and other people seeking jobs thanks to the industrial transformation then China needs to create more than 12 million new jobs this year.

Which is a tough task given that China's economy is facing downward pressure. For example, in the first half year of 2018, China's GDP grew 6.8 percent, while the growth was only 6.3 percent in the first six months of this year. Worse, the figure could decline further in the latter half of 2019, as many factors that contribute to GDP growth, such as industrial growth, real estate investment growth and total retail sales of consumer goods, have all declined compared with last year.

Fortunately, the leading group on employment has the tools to ease the pressure on the job market. As the largest group of job seekers, college graduates have an entire year to find jobs. In addition, college graduates have several options to seek employment immediately or in the near future-for instance, they can start their own business or choose to pursue further studies. Plus, statistics show that more than 90 percent of college graduates find a job within six months of leaving college, sometimes by accepting salaries lower than their expectations.

As for migrant workers, they have always been flexible in the job market. Due to the ever-improving employment information channel and rising demand for workers in the service industry, the actual demand for migrant workers has been continuously rising in recent years.

The government, on its part, should improve its economic efficiency, overcome uncertainties and take measures to fulfill enterprises' requirements to ensure sustained economic growth, which in turn would further increase the demand for labor. The government should also accelerate reform and opening-up, and implement targeted macroeconomic policies to minimize economic fluctuations and narrow the gap between job seekers' expectations and the real condition in the market.

Take college graduates for example. The majority of them expect to get a salary higher than the existing market rate-and many of them prefer to work in China's eastern region, first-tier cities and/or large enterprises. This indicates there is a gap between college graduates' expectations and the actual situation in the job market. Besides, many college graduates' knowledge and practical skills cannot fulfill the requirements of the market, especially those of big companies.

So the authorities should moderately loosen macroeconomic policy to create more jobs, strengthen social security and improve information sharing to cultivate more talents.

The author is a professor at the School of Economics, Renmin University of China. The views don't necessarily represent those of China Daily.

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