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China Faces Worst Unemployment in Decades as Slowdown Deepens
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By Li Yanping

Jan. 20 (Bloomberg) -- China’s official urban unemployment rate jumped for the first time since 2003 and may climb to an almost 30-year high as exports slump and a slowdown deepens in the world’s third-biggest economy.

Registered unemployment rose to 4.2 percent as of Dec. 31, Yin Chengji, spokesman for the Ministry of Human Resources and Social Security, said in a transcript of a press briefing in Beijing today. It was 4 percent three months earlier.

A rate as high as the government’s 4.6 percent target for this year, which was announced by Yin today, would be the worst since 1980, official data show. Premier Wen Jiabao said yesterday that the government must do more to preserve social stability in the face of a “very grim” job outlook.

“Growth has fallen off a cliff in China in recent months,” said Paul Cavey, chief China economist at Macquarie Securities Ltd. in Hong Kong. “It does already feel like a recession for a lot of people.”

The official figure understates unemployment because it doesn’t include those who aren’t registered, including migrant workers. The state-backed Chinese Academy of Social Sciences said the rate including migrant workers may be higher than 9.4 percent in 2009.

A separate survey of urban unemployment by the labor ministry, which covers the entire workforce, has been 1 percentage point higher than the registered rate since 2005, Yin said.

Economic Slump

China’s economic growth may have cooled to 6.8 percent last quarter, the slowest pace in seven years, according to a Bloomberg News survey of economists. The figure is due this week.

“The export-related workforce will take a serious hit this year as exports decline,” said Ken Peng, an economist with Citigroup Inc. in Shanghai. “The government may not be able to meet its target for creating jobs.”

The government aims to add 9 million jobs in 2009, Yin said today. His comments were posted on the official China.com.cn Web site.

During the fourth quarter of last year, the number of registered jobless in cities jumped 560,000 to 8.86 million, the official said.

Premier Wen said yesterday that China was facing its most challenging year so far this century and the government needed to urgently reverse the economic slide.

To contact the reporters on this story: Li Yanping in Beijing at yli16@bloomberg.net
Last Updated: January 19, 2009 23:28 EST

Not good China has been driving the US economy for a few years now.

You are right Chris !!! But the App. 10 percent growth they have enjoyed is HUGE and can not continue forever. now it is still at 6 to 7 % and that in itself is Very Good !!!! If the new Administration stabilize's the Perception that he will be friendly to Business and the Middle class ?

This will rebound back very quick !

They have enjoyed incredible growth for the last several years and I agree that it can't be sustained especially in an economy like this. If buying slows down in the US and other countries it has to affect them at some point. It wouldn't be so alarming if those jobs were coming back to the US and Canada but they are not!

Their unemployment rate is still a lot less than the US if I have the numbers right.

We still need to get confidence back in the masses! If people start to spend money then they will keep their jobs if they keep their jobs, they will have money to spend! What a nasty circle. I sure hope we can change the direction of this or at least stabilize it soon.

The People WITH $$$$ cash in the pocket are not in the Mood to spend as of YET ??? Maybe spring will change this ! Hope so


Now people that have put everything on credit the past 10 years that some what got us into this situation ? !!! Are now cut OFF


So many things will have to re adjust ! for sure

I can't say as I blame people for not being ready to spend yet, but I think it would have a very positive impact. Of course there is still all the banking issues (as you stated related to the borowing) that have to be resolved as well and that is a tougher problem. Unfortunately that problem grows as people continue to loose jobs and not spend, again that nasty circle effect!

All we have is our Mortgages and our vehicle loans and so far we have the equity to cover them all, as well as the means to pay them all, the problem we have is the market to be able to realize that equity is very weak, so we are standing on the edge of the cliff so to speak. It is a scary place to be, hoping that we can ride out the storm and get back to a comfortable position!

I personally give a rats a$$ about China. They have made products and sold it to the US for years at far below market price. They also sent us tainted dog food, lead in the paint. They have no checks a measures. If they would make a quality product and charge a fair price we would all be better. Thank good ole Wal-Mart for pushing manufacturing over there. I must admit that I buy 2 items from China, only because I cannot compete by using US made, even though we manufacture ourselves. My cost to make a particular widget is around .40, I can buy it from China for .24. I know I talked about quality, but in some of my markets, it's cost that rules not quality. 47% of my business is foreign, so I must do what is necessary to maintain or I get hungry. Just my thoughts, and China can kiss my arss.

I spent a week in China back in May. God, I hope to never go back.

What's sad is the machine I bought over there cost me about 1/4 what it was going to cost in the U.S. even after shipping it in two containers by sea and two semi trucks by land. I hated doing it but it was the bottom dollar that dictated the decision.

I would not have so much a problem with imports if our FDA would hold them to standards forced upon us to mfg/sell within our own borders!

We are now using 3 times the paper alone just to satisfy the FDA record keeping necessary. Don't get me wrong, records should be kept, etc, I'm just talking about the difference in standards....

Personally, I think the FDA is a bunch of bought MF's.

YES! What she said!!!!!!!

Spare Change wrote:YES! What she said!!!!!!!

Spare, your so well spoken........through katie or course!

Why thank you!

Spare Change wrote:I personally give a rats a$$ about China. They have made products and sold it to the US for years at far below market price. They also sent us tainted dog food, lead in the paint. They have no checks a measures. If they would make a quality product and charge a fair price we would all be better. Thank good ole Wal-Mart for pushing manufacturing over there. I must admit that I buy 2 items from China, only because I cannot compete by using US made, even though we manufacture ourselves. My cost to make a particular widget is around .40, I can buy it from China for .24. I know I talked about quality, but in some of my markets, it's cost that rules not quality. 47% of my business is foreign, so I must do what is necessary to maintain or I get hungry. Just my thoughts, and China can kiss my arss.

My company was hired to help a Bankruptcy Court write checks and settle final accounting for a huge manufacturing concern in Danville KY.
I had to gather some more information from the Plant Gen. Manager so I went to see him in person. There was a large group of Chinese business men in an another room laughing and making a lot of noise. I asked him what was that about. He started choking up and was almost in tears.
He told me "those bastards under bid us by 25-30% on every contract. We couldn't compete with their cheap labor, cheap raw materials, no EPA or OSHA and that's why we had to declare bankruptcy. Now they are buying all of our machinery, equipment and tooling for pennies on the dollar and they are in there laughing about it."
HE, I feel certain, would agree with your comments Spare. I certainly agree with the comment about Wal-Mart.

You think maybe this is a "chinese" based company??? Go FDA!


http://news.yahoo.com/s/ap/20090207/ap_ ... a_outbreak