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Social and economic issuesWhat is unemployment like in China?

A Capitalist economic system has brought wealth for some and mass migration from rural to urban areas. Not everyone has benefited from social and economic change, and new problems have been created.

Part of Modern StudiesWorld power: China

What is unemployment like in China?

Unemployed people looking at job advertisements in the city of Shenzhen, China
Figure caption,
Unemployed people looking at job advertisements in the city of Shenzhen, China

According to the World Bank, as of 2023, unemployment is low (4.1% of all workers). But many argue the true number of jobless is much higher.

Why are unemployment figures low in China?

One explanation for China's low unemployment figures is that millions of workers, who have left their villages and towns to seek work in the cities, do not have a permanent address. This means they are not counted in official unemployment figures.

Economic growth in China

In response to growing unemployment levels the Chinese government continues to make economic growth a priority. A growing economy means greater demand for workers who provide goods and services. This helps keep unemployment down.

Economic growth in China has slowed in recent times but for the majority of the last 20 years it has been far higher than in the UK, Europe or the USA.

Strategies for growing the economy in China

The Chinese government has reduced the permit system that used to restrict people's movements. This is supposed to make it easier for individuals to find work. They have also encouraged and supported entrepreneurs and businesses to find new markets for Chinese goods overseas.

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