As China's rapid economic growth continues, one would expect that the average Chinese worker to be reaping the rewards. But with a rapidly growing workforce and the lingering spectre of unemployment, many Chinese people are still waiting for prosperity to arrive

by Cindy Chen

Since China joined the WTO, the strong demand for labour has promised a bright future for workers. Greater employment opportunities, higher wages and better working conditions seem to be the inevitable consequences of the country's economic boom.

However, a recent survey released by China’s National Development and Reform Commission anticipates that the unemployment rate in 2007 is expected to stay high with some 25 million urban residents rushing to fill the 10 million vacancies available.

This means that at least 15 million people, roughly the population of Beijing, may not be able to find jobs this year.

Last year, four million Chinese students who graduated from colleges and universities faced the intense difficulty of finding a job that paid a monthly salary of above 1,000 Chinese yuan (US$125).

But the good news is that economists are predicting China’s shift from exports and investment-led growth to an economy driven by consumption will help create more jobs and bring greater benefits to citizens.

It remains to be seen if these predictions will come true. In the meantime, in such a highly competitive employment environment, many Chinese workers have little negotiating power. As a result, many Chinese people are unable to afford the goods they produce.
 

A man sells roasted sweet potatoes to passers-by on a Beijing street. His monthly salary is low and unpredictable.

© Cindy Chen - February 2007