China faces increasing unemployment amid slowdown

PTI Updated - August 05, 2013 at 07:19 PM.

Over three million graduates are struggling to find jobs this year in China as the world’s second largest economy is facing a slowdown due to fall in exports and a sluggish domestic demand.

With nearly 7 million graduates this year, adding on the unemployed students from previous years, the number of graduates struggling to find jobs before leaving school is estimated to have reached over 3 million, Wang Yujun, from the Ministry of Human Resources and Social Security said.

He gave the figures while releasing the “2012 China Social Security Reform and Development Report”, state-run China Radio International reported.

As a result of growing unemployment, the report said, the delayed retirement is not a viable option at present, as the current conditions are insufficient.

According to recent reports the ruling Communist Party of China (CPC) regards unemployment as the potential threat for social stability and the top leadership wants to deepen the economic reforms to spur growth.

The job market is unable to fulfil the demands of job hunters with only 30 per cent of new job vacancies coming from the retired, Professor Deng Dasong of Wuhan University said.

Also in view of the demographic crisis due to an ageing population, China is reportedly considering to increase the retirement age from 60 to 65 to keep more people employed.

Observers say that the growing numbers of unemployed may have an adverse impact on such a move.

Published on August 5, 2013 13:45