Society

China to have 31 million jobless workers in 2011

By Jia Xu (chinadaily.com.cn)
Updated: 2010-06-18 11:49

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 research 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.