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Uncovering the Truth about Chinese Urban Unemployment Rates: 2005–2012
2016-11-07 16:18:00

China & World Economy / 1–18, Vol. 24, No. 6, 2016


Uncovering the Truth about Chinese Urban Unemployment Rates: 2005–2012

Jun Zhang, Liheng Xu, Huihui Zhang*


Abstract

Using China Urban Household Survey data from 2005 to 2012, the present paper examines the changing pattern of China’s urban unemployment rates. The paper shows that the annual urban unemployment rates during 2005–2012 averaged approximately 8.5 percent, as opposed to the official figure of approximately 4.1 percent, and despite the significant slowdown of GDP growth since 2008, the urban unemployment rates still exhibit a downward trend. This paper finds that continuous job creation in both the tertiary and the non-state sectors helps explain the decreasing trend in unemployment rates. Meanwhile, the downward trend of the unemployment rates could also be explained by the fact that both the secondary industry and the state-owned sector have destructed fewer jobs because of the execution of macroeconomic stimulus policies since 2008.


Key words: employment, unemployment rate
JEL codes: J64, 053