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China’s Economic Development and the Change
in Production and Employment in China
I would like to speak on the following four
topics:
1. China’s Economic Development
2. Overview of Employment in China
3. Relation between China’s Economic
Development and Employment
4. Several New Trends in Employment in
China
1. China’s Economic Development
(1) Size of the economy
(2) Investment in fixed assets
(3) Consumption
(4) External trade
Changes in Annual GDP Growth （％）
20
15
10
5
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
1981
1980
0
2. Overview of Employment in China
(1) Population and size of the labor force
(2) Total employment volume
Changes in the Number of Workers (1990-2003) (Unit: 10,000)
80000
75000
70000
65000
60000
55000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Diagrams: Ratio of the Population of the Employed in Urban and Rural
Areas of the Total Employment Volume
Ratio of the population of the employed
in urban and rural areas (1990)
Ratio of the population of the employed
in urban and rural areas (2003)
Population of the employed
in urban areas
26%
Population of the employed
in rural areas
74%
Population of the employed
in urban areas
34%
Population of the employed
in rural areas
66%
(3) Employment structure
Ratio of Employed Persons by Industry (1990-2003)
100%
80%
60%
40%
20%
0%
Primary industry
Secondary industry
Tertiary industry
Diagrams: Employment Structure by Primary, Secondary, and Tertiary
Industry
Employment structure by primary, secondary,
and tertiary industry (1990)
Tertiary industry
19%
Secondary industry
21%
Primary industry
60%
Employment structure by primary, secondary,
and tertiary industry (2003)
Tertiary industry
Primary industry
29%
49%
Secondary industry
22%
(4) Unemployment rate
Changes in the Registered Unemployment Rates in Urban Areas (1990-2003)
5.0
4.3
4.0
3.0
2.0
2.6
2.3
2.5
2.3
3.1
2.9
3.6
3.1
4.0
2.8
3.0
3.1
3.1
1.0
0.0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
3. Relation between Economic Development
and Employment
(1) First phase (1978-1996)
A major feature of the relation between economic development and
employment during this phase was that economy and employment
grew simultaneously. Regular employment and atypical employment
existed side by side, and at the same time, supported the growth of
employment. Atypical employment is gradually beginning to play the
role of increasing employment.
(2) Second phase (1996-today)
A major feature of the relation between economic development and
employment during this phase is that economy and employment are no
longer growing simultaneously. While the momentum of economic
growth has been maintained, the increase in the number of workers is
slowing. The number of regular employees is declining. Atypical
employment is absorbing an increasing number of workers.
4. Several New Trends in Employment in
China
(1) The employment conditions remain difficult.
(2) Atypical employment, such as employment of part-timers and jobhopping part-timers, continues to increase.
(3) The number of workers employed by foreign-affiliated firms
continues to increase.
(4) The issue of young people’s employment has come to the surface.
(5) The issue of surplus labor in rural areas becomes an increasingly
difficult issue.
In sum, China’s working-age population will increase by 5.5 million
every year on average until 2020. In 2020, China will have a workingage population of 940 million. With this labor force, China must
maintain a certain level of economic growth. For the Chinese
Government, the employment issue is very important. Employment
promotion is one of the Chinese Government’s long-term national
policies.