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China has long denied that the coronavirus can spread among humans, known as local spread. Four months after admission, more than 4.2 million people have been confirmed worldwide and nearly 300,000 deaths.
Massive unemployment figures
Economic activity has stopped in China this year. The official unemployment rate is high, but hundreds of millions of people are not included in the statistics.
“Although the coronavirus has been severe for employment, there are no layoffs or extensive layoffs in China,” National Statistics Office spokesman Mao Shengyong said in a recent press conference.
Financial institutions and think tanks have a completely different understanding of the consequences of the coronavirus (Covid-19). The official unemployment rate is 5.9 percent. This is slightly higher than the average for recent years.
– Chinese unemployment is very little reported. It is unusual for them to post bad statistics. Since authorities often massage the numbers, the actual situation should be worse, says CNN professor Willy Lam at the China Studies Center at the Chinese University of Hong Kong.
Shocks in the labor market
Economic activity plummeted in China in the first quarter, with more than a six percent drop in gross domestic product, the biggest drop in modern Chinese history.
The state expert group Chinese Academy of Social Sciences writes in a report that unemployment statistics refer only to permanent employees working in cities.
If China’s 290 million migrant workers, including factories in factories and the construction sector, had hired jobs, probably 80 million were unemployed at the end of March, according to the expert group.
“This is an unprecedented shock to the Chinese labor market in terms of scope, extent and nature,” Société Générale of China writes in a report.
Broker Zhongtai Securities believes unemployment in China was 20.5 percent in April, more than three times more than official statistics.
Upright Asset chief economist Liu Chenjie wrote in an April analysis that the pandemic has sent 205 million workers into friction unemployment. The Chinese labor market consists of around 775 million workers.
Communist party threats
In general, it has been easy to get a well-paying job in the service sector for Chinese youth who are completing university studies. This year, around 8.9 million Chinese graduated.
“China had 442 million jobs in cities in 2019. This has to increase by around eight million to keep unemployment practically unchanged. Our main scenario is that six million fewer jobs will be created this year and 14 million will be lost, ”the chief China economist at Macquarie Group tells Hong Kong’s South China Morning Post.
The Chinese communist leadership, which has ruled China since 1949, has promised stable jobs, economic growth and prosperity to the Chinese. They have kept that promise since market reforms began more than 40 years ago. Now is hard.
“The Communist Party leadership fears that the sharp rise in unemployment could turn into social unrest and threaten its power,” writes the South China Morning Post.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We want you to share our cases using a link, which links directly to our pages. Copying or any other use of all or part of the content may only be made with written permission or as permitted by law. For more terms see here.
