Thousands of factories are closing in Southern China. Over 20 million migrant workers are losing jobs, and at least 60 million students are trying to enter the workforce in just a few months, add to that makes millions more ready out of work or failing to find jobs. And China’s unemployment rate is affected to worsen amid the sharp global economic downtown.
Economists such as Wang Zhiyong researcher with China Academy of Social Science says the real unemployment rate would be at least twice as high as the urban register rate of 4.2% at the end of 2008.
My estimate is that with financial crisis, the unemployment rate will rise to 8, or even 9%. The real unemployment rate, what we have now is only the government registered unemployment for city dwellers. It doesn’t include migrant workers or people working outside their hometowns.
2 days ahead of China’s National People Congress, delegates from all around the country gathered in Beijing to hammer out plans for the World’s 3rd largest economy.
The meeting this week is a lightening rod for those hoping grievances will be aired or solved.
Last week, hundreds of laid-off employees gathered at Commercial and Industrial Bank of China’s headquarter in an unusually coordinating way.
I don’t have a job. I cannot do anything because there is no job out there.
Rising unemployment, falling income and discontent over inequality may bring more local riots, protests, or strikes, what officials call mass incidents spiked by anger over corruption, land dispute and sacking.
In 2009, China had over 80,000 mass incidents, about 1/3 up from 2006 in a high-growth period raising the concern about what the downturn will bring.
Kitty Bu reporting for Reuters in Beijing.
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