The Global Economic Crisis and Unemployment in China

Two noted academic specialists on labor economics and population statistics of China examine the impacts of the global economic crisis of 2008-2009 on the job security of urban workers, and the ensuing repercussions for the Chinese society and economy. More specifically, they probe and determine the magnitude of urban unemployment in China in 2008 and 2009 as it appears to be reported in different segments of the country's immense labor market. A particular focus of the paper is on differences in unemployment among two groups of workers (those with urban hukou vis-à-vis rural migrant workers) with significantly different sets of rights and privileges, as well as levels of job security. The authors also provide an estimate of the urban unemployment rate in 2009 that differs from the official rate. They argue that measures toward further integration of rural and urban labor markets and reducing natural unemployment are ultimately more beneficial than short-term interventions to adjust cyclical joblessness stemming from the global economic crisis and recession.

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