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Economic development vital to generate employment

Despite the complex domestic and international situations, China created 11.33 million new urban jobs from January to October, meeting the full-year target two months before schedule. China’s success can be attributed to three major macro policies-proactive fiscal policy, prudent monetary policy and employment-first policy-and shows the fundamental solution to the unemployment problem lies in economic development.

According to official statistics, the country’s surveyed urban unemployment rate was 5.3 percent in March, fell to 5 percent in June and 4.9 percent in September, and remained at 4.9 percent in October.

The unemployment rate was relatively high in the first quarter, because of the Spring Festival holiday and some new COVID-19 infections.

But as production accelerated in March and the infections were effectively controlled, the unemployment rate began to fall. And with the labor market recovering in the second quarter, employment increased.

Thanks to the steady economic development and rising employment in key sectors in the second half of the year, the unemployment rate has fallen further. The surveyed urban unemployment rate averaged 5.1 percent from January to October, lower than the 5.5 percent target for the full year.

The sound performance of China’s macro economy has been a major factor for employment growth. To stabilize employment, China has balanced pandemic prevention and control measures with economic activity, thereby boosting economic recovery and generating more jobs.

The measures taken to reduce enterprises’ economic burden and support the development of labor-intensive industries with strong job creation capacity have also increased the demand for labor in the market.

The sustained growth of the private economy and services sector, as well as the sharing economy, platform economy and other new forms of businesses, too, have increased employment.

But despite meeting the job creation target before schedule, China has to continue taking measures to reduce urban employment pressure and resolve employment structural contradictions.

China’s balanced and coordinated economic recovery needs to be further enhanced as some industries still face short-term operating pressure.

Also, China should continue to use its fiscal and monetary policies to help more people find jobs, limit the surveyed urban unemployment rate to below 5.5 percent and promote higher-quality employment.
Source: China Daily

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