China needs to find new momentum to its economy. People's income is still too low to dare to spend money, which is the key weak point of the sustainability for china's economy.
And meanwhile the surging price of houses scare of chinese average citizen from spending.
China may see "severe" employment losses next year as millions of temporary jobs end with the completion of projects under the government's 4 trillion yuan ($585 billion) stimulus package, according to China International Capital Corp (CICC).
Recent pay increases in manufacturing industries and widespread minimum-wage rises may also prompt more cautious hiring practices by employers, Ha Jiming and Xing Ziqiang wrote in a report to clients yesterday.
Research from the National Development and Reform Commission estimates that the stimulus brought 5.6 million new long-term jobs and nearly 50 million temporary positions during the construction of the projects, economists at the Beijing-based investment bank said.
The supply of labor into the market next year could increase by 39 million, made up of 7.58 million college graduates, 6 million to 7 million surplus laborers moving from rural areas, and 25 million temporary workers who will lose their stimulus-related jobs, according to the CICC report.
Assuming China's economic growth slows to 7.5 percent in 2011, there may only be about 8 million new jobs created, leading to a 31 million increase in the number of unemployed, the economists
China may have 31 million unemployed workers next year as its 4 trillion yuan economic stimulus funds are used up, according to a report from China International Capital Corp Ltd (CICC) released Wednesday, xinmin.cn reported Friday.
The report cites a survey from China's top economic planner, the National Development and Reform Commission (NDRC), saying China has created 5.6 million long-term jobs and 50 million temporary ones with the stimulus package.
The rise of minimum wages across China, especially in the manufacturing industry, will further influence employers' hiring strategy, analysts with CICC said.
The estimated number of new potential employees in China next year will be 39 million, of which 7.58 million will be fresh college graduates; 6 to 7 million surplus laborers from rural areas and 25 million temporary workers who will lose their stimulus-related jobs. However, the number of available job vacancies would only be 8 million. This means there will be about 31 million unemployed people next year, the report said.
The CICC also predicted China's economy will slow down a bit in 2011, to a 7.5 percent growth rate