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Business / Economy

Job market is not working for some

By Ding Qingfen and Chen Jia in Beijing and Yu Ran in Wenzhou (China Daily) Updated: 2012-07-26 10:39

Getting worse

"The job situation does not appear all that serious yet, but clearly, the situation is deteriorating and will get worse in the third quarter, we believe," said Green's report.

Although the HSBC purchasing managers' index for July rose to 49.5 from 48.2 in June, "the below-50 July reading implied that demand still remains weak and employment is under increasing pressure. This calls for more easing efforts to support growth and jobs," said Qu Hongbin, head of Asian research at HSBC, quoted in the Financial Times.

But China won't loosen property market restrictions, although such a move could generate many jobs, according to a Xinhua News Agency report, citing a government source.

The registered urban unemployment rate stood at 4.1 percent at the end of June, unchanged from the end of 2011. Almost 7 million new jobs were created in the first half and nearly 3 million people were re-employed during the same period, according to the Ministry of Human Resources and Social Security.

Yin Chengji, a ministry spokesman, said on Wednesday that the employment situation will be tough in the latter half of the year, although the number of new jobs created in the first six months hit a record high.

"Some enterprises in the eastern regions are experiencing difficulties but they have not yet cut employment to sustain growth," he said, "As economic growth slows, they will face a tougher situation."

Earlier this month, Premier Wen Jiabao warned that the economic rebound lacks momentum and difficulties may persist. He also said that the labor situation will become more "severe" and more "complex", and that the government will continue to implement a more "proactive" labor policy.

"Party commissions and government at all levels should further increase awareness that job creation is extremely important and earnestly put promoting employment at a priority among all work tasks," said Wen.

However, as the European debt crisis deepens and with government efforts to stimulate the economy through increased investment and the expansion of domestic consumption yet to take off, companies are not optimistic.

"Since August, things have gone from bad and worse. Especially for small and medium-sized enterprises and exporters. We're lucky if we break even," said Jinlishi's Ke. "We cannot see any turning point or upward trend in the short term," he added.

Media reports have noted a new wave of migrant workers returning to their hometowns in the central and western provinces and even those still in employment are feeling the pinch and are not confident about future prospects.

"The price of everything is going up, and at a faster pace than our wages," said Li Liang, who works for a company on Pugongzhong Road. "Times were good before last year, but since then, I've seen little improvement in my wages. I can hardly afford the daily expenditure, including rent, food and fees for my daughter's kindergarten," said the native of Anhui province. "It's really not easy working in the city. We will probably go back home to look after the farm if things don't look up by the autumn."

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