China’s economic growth unable to boost employment as job market drops to six-year low

Post by 
Published 
April 20, 2019

Heading

China’s economic growth unable to boost employment as job market drops to six-year low

The number of workers hunting for jobs grew 31 per cent in the first quarter from the last quarter of 2018, while demand for staff fell 7.6 per cent. Photo: Xinhua

  • In the first quarter of 2019, the number of potential applicants rose to the highest level since 2011, while demand for staff declined
  • China Institute for Employment Research at the Renmin University of China in Beijing calls for government to introduce more stimulus measures

Despite better-than-expected economic growth in the first quarter, China’s job market performed at its worst level in six years at the start of 2019, according to an industry report published on Friday.

The number of jobs seekers normally rises during January to March when many workers look to change jobs and college graduates start looking for career opportunities after their graduation.

However, in the first quarter, the number of potential applicants rose to the highest level since 2011 while demand for staff declined, according to the China Institute for Employment Research (CIER) at the Renmin University of China in Beijing.

This meant that the ratio of open positions to job applicants fell in the first quarter to 1.68, its lowest level since 2014, the CIER said, using research based on data from job recruitment site Zhaopin.

“The 2019 first quarter data showed increasing pressure from weak demand in the economy on employment. It has been on a straight fall for six quarters consecutively, showing increasing pressure from weak demand in the economy on employment,” CIER said.

“To keep the job market stable, we suggest the government introduce more stimulus measures to boost demand while continuing to cut taxes and [social security] fees.”

The number of workers hunting for jobs grew 31 per cent in the first quarter from the last quarter of 2018, while demand for staff fell 7.6 per cent. Compared to the first quarter of 2018, the number of open positions dropped 11 per cent in the first quarter, the report said.

China’s official unemployment data was mixed in the first quarter, with the survey-based urban unemployment rate at 5.2 per cent across the country in March, down from 5.3 per cent in February. But in 31 provincial capitals, the unemployment rate rose to 5.1 per cent in March, the highest since the end of 2016.

Beijing has made employment one of its top policy priorities this year amid the slowing economy, and according to the Ministry of Human Resources and Social Security, 3.24 million new jobs were created in the first quarter, close to a third of its target of 11 million for the whole year.

While overall there were more jobs in the economy than workers, there was a wide difference between regions across China.

Eastern and southern China fared relatively better than northern cities including Beijing, where five jobseekers were competing for every open position, according to CIER. In the northeastern provinces known as China’s rust belt, two people were competing for every job, on average.

China’s official unemployment data was mixed in the first quarter with the survey-based urban unemployment rate averaging at 5.2 per cent across the country in the first quarter, down from 5.3 per cent in the fourth quarter. Photo: Reuters

But even in the rich eastern and southern provinces, many cities could barely meet demand from job applicants.

In the Pearl River Delta region in southern Guangdong province, China’s manufacturing hub, the employment market had fewer jobs than workers in the first quarter, with demand for staff increasing only 4.17 per cent year-on-year in contrast to the increase of 48.4 per cent in available applicants, CIER said.

The education sector created the most jobs in the first quarter, the CIER added, with open positions up 6.2 per cent from the same quarter last year. In particular, education institutions in smaller, second-tier cities showed the highest hiring growth.

But the internet and e-commerce industries continued to shows signs of stress, with open positions down 22 per cent year-on-year. Earlier this year, internet companies, including ride sharing giant Didi Chuxing, were preparing to lay of thousands of employees to cut costs.

And while China’s stock market may have strengthened in the first quarter, that has not brought back jobs in the financial industry, which continued to suffer the biggest drop in hiring demand – down 39.7 per cent – among all industries during the first quarter.

The reduction in finance jobs was the most severe in the first-tier cities of Beijing, Shanghai, Guangzhou, and Shenzhen.

Author: Sidney Leng

THere's More

Post you might also like

All Posts
THere's More

Post you might also like

All Posts
Sustainable Garments Mcogroup – The Fashion Revolution - Organic Cotton – Recycled Cotton
May 6, 2021

Sustainable Garments Mcogroup – The Fashion Revolution - Organic Cotton – Recycled Cotton

When we say that we are a sustainable garments factory in Asia it means that we strive to avoid manufacturing processes that deplete natural resources so that we can maintain an ecological balance. Wasting resources can not be avoided altogether in any manufacturing process. Our sustainable garments factory in Aisa makes a sincere effort to minimize waste and preserve an ecological balance.
Bosco - Stone Collection modern under-mounted white single bathroom vanities cabinets
May 4, 2021

Bosco - Stone Collection modern under-mounted white single bathroom vanities cabinets

Imported porcelain slab of countertop, natural pure white stone touch, solid wood texture, environmental and beautiful, golden ratio upper and lower drawer, more reasonable to storage.Line shape shelf release more space.
ODM Vs. OEM: What’s The Difference?
May 3, 2021

ODM Vs. OEM: What’s The Difference?

You’ve probably seen the terms “ODM” and “OEM” before. And chances are, wherever you’re sitting right now, you’re within arm’s reach of several ODM and OEM products. Understanding these terms and the difference between them is an important step in setting yourself up to be a China sourcing pro.
Modern custom made Bedroom Wardrobe Design Luxury Dark Wood Walk-in Closet
May 3, 2021

Modern custom made Bedroom Wardrobe Design Luxury Dark Wood Walk-in Closet

Feature: 1. Door Panel: melamine door panel(E1 European standard ), scratch-resistant and easy care. The most economical material optional, 85% of projects in the world use it. 2 . Great craftsmanship and quality products 3 . One-stop solution service (measurement, design, produce, delivery, overseas installation, A/S)
Biorefinery – pulp production in the Lenzing Group natural fibre made from wood for activewear 100 % organic
April 20, 2021

Biorefinery – pulp production in the Lenzing Group natural fibre made from wood for activewear 100 % organic

This focus paper “Responsible Production” describes the biorefinery and fiber production processes. It provides an overview of the Lenzing Group’s manufacturing processes with particular regard to environmental aspects.