China’s Economic Development and the Change in Production and Employment in China

I would like to speak on the following four topics:

1. China’s Economic Development

2. Overview of Employment in China

3. Relation between China’s Economic

Development and Employment

4. Several New Trends in Employment in

China

1. China’s Economic Development (1) Size of the economy

(2) Investment in fixed assets

(3) Consumption

(4) External trade

　　

0

5

10

15

20

19

80

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

Changes in Annual GDP Growth （％）

2. Overview of Employment in China (1) Population and size of the labor force

(2) Total employment volume

　　　　　　　　　　　　　　　　　

55000

60000

65000

70000

75000

80000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Changes in the Number of Workers (1990-2003) (Unit: 10,000)

Diagrams: Ratio of the Population of the Employed in Urban and Rural Areas of the Total Employment Volume

　　　Ratio of the population of the employed in urban and rural areas (1990)

Ratio of the population of the employed in urban and rural areas (2003)

Population of the employedin rural areas

74%

Population of the employedin urban areas

26%

Population of the employedin urban areas

34%

Population of the employedin rural areas

66%

(3) Employment structure

　　　　　　

0%

20%

40%

60%

80%

100%

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Ratio of Employed Persons by Industry (1990-2003)

Primary industry 　　 Secondary industry 　　 Tertiary industry

　　　Diagrams: Employment Structure by Primary, Secondary, and Tertiary

Industry

　　　　　　　　　　　　　　　　Employment structure by primary, secondary,

and tertiary industry (1990) Employment structure by primary, secondary,

and tertiary industry (2003)

Primary industry60%

Secondary industry21%

Tertiary industry19%

Primary industry49%

Tertiary industry29%

Secondary industry22%

(4) Unemployment rate

　　　　　　　　　　　　　

　　　　

4.3

2.5

2.3

2.3

2.6

2.8

2.9

3.0

3.1

3.1

3.1

3.1

3.6

4.0

0.0

1.0

2.0

3.0

4.0

5.0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Changes in the Registered Unemployment Rates in Urban Areas (1990-2003)

3. Relation between Economic Development and Employment

(1) First phase (1978-1996)

　 A major feature of the relation between economic development and employment during this phase was that economy and employment grew simultaneously. Regular employment and atypical employment existed side by side, and at the same time, supported the growth of employment. Atypical employment is gradually beginning to play the role of increasing employment.

(2) Second phase (1996-today)

A major feature of the relation between economic development and employment during this phase is that economy and employment are no longer growing simultaneously. While the momentum of economic growth has been maintained, the increase in the number of workers is slowing. The number of regular employees is declining. Atypical employment is absorbing an increasing number of workers.

4. Several New Trends in Employment in China

(1) The employment conditions remain difficult. (2) Atypical employment, such as employment of part-timers and job-

hopping part-timers, continues to increase. (3) The number of workers employed by foreign-affiliated firms

continues to increase. (4) The issue of young people’s employment has come to the surface. (5) The issue of surplus labor in rural areas becomes an increasingly

difficult issue.　　 In sum, China’s working-age population will increase by 5.5 million

every year on average until 2020. In 2020, China will have a working-age population of 940 million. With this labor force, China must maintain a certain level of economic growth. For the Chinese Government, the employment issue is very important. Employment promotion is one of the Chinese Government’s long-term national policies.