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Despite adding an additional 7.25 million jobs during the first half of the year, the slow economy has resulted in China’s leaders focusing more on unemployment levels. The closed nature of Chinese politics makes it challenging to come to precise unemployment figures; however, unemployment is on the rise.
An index measuring employers hiring intentions for the third quarter dropped to around 51 in June, the lowest since the beginning of 2010, according to Hudson. Among the 816 Chinese employers interviewed by the global talent solutions company 13.2% reported that they would decrease staff number in the next quarter, an increase of +6.2% compared with Q2 2013.
At a recent press conference, China’s National Bureau of Statistics announced that the country’s second quarter GDP growth slowed to 7.5%. Officials at the press conference stated that the slower economic performance did not have much impact on the job market. Signs of increased unemployment are not expected to be seen until Q3 2013.
The Chinese President Xi Jinping’s unexpected visit to a job fair in Tianjin in May highlighted the growing concern regarding unemployment. Graduates in particular are not expected to fare well in the economic slowdown. China’s College Graduates Employment Annual Report 2013, issued last month, advised that employment rates for this year are far lower than last year. Last year, the employment rate was almost 50% by April, and over 90% by the end of 2012. But by April this year only one-out-of-three graduates with a bachelor’s degree had successfully found employment. The outlook is worse for master’s graduates with only one-in-four finding employment by April.
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