The problem of unemployment is relevant for many countries. The growth of the Earth's population, combined with scientific and technological progress, leads to an excess of supply on the labor market. People themselves are becoming more demanding of working conditions and wages. As a result, it is more profitable for companies to transfer their production to low-income countries. This allows you to save on salaries. But at the same time, unemployment is growing. China is one of the prime examples of this.
Why China?
China has a huge population, and living standards are growing rapidly. The constant growth of mechanization and automation of labor leads to the fact that less and less workers are required. As a result, many people are left without work. The only way to somehow compensate for this imbalance is to constantly increase the production of final products. In China, new enterprises are constantly opening and a lot of unnecessary things are being produced, which sooner or later end up in landfills. This allows you to maintain employment, but leads to excessive consumption of resources and environmental problems.
Despite the signing of the Paris climate agreement by this country, emissions of harmful substances continue to increase. And the authorities in this country are in no hurry to limit the birth rate. As a result, there is a high dependence on other countries (including the USA) and various environmental problems.
What is China?
This is a huge country located in the east of Asia. One of the largest in terms of area and population in the world. Since 2014, it has become a leader in terms of economy, and since then, the gap from other countries has only grown. The country's GDP is also growing rapidly - an average of 6-8% per year. This is achieved by the gigantic volume of production and the development of high-tech industries. China is one of the leaders in high technology. The share of agriculture in total GDP is gradually decreasing. China ranks first in the world in terms of exports. It accounts for 4/5 of the state's foreign exchange earnings. Most of all Chinese products are sent to the USA, Japan, Western Europe.
In the structure of exports, low-tech goods used to dominate: clothes, shoes, toys, etc. But in recent years, the country has become one of the leaders in the export of electronics and vehicles.
China's unemployment rate
Thanks to the constant increase in production, the country's authorities are able to restrain unemployment and prevent its excessive growth. However, information on Chinese unemployment is quite limited. The official level is only 4.1%, which indicates economic growth and the stability of the employment situation. In March of this year, the figures were higher - 5.3%. This was due to a decrease in product exports due to tense relations with the United States. Another reason could be low domestic demand for cars. However, this is still a rather low value for such an overpopulated country. Such figures can only be obtained in conditions of rapid GDP growth. In 2018, it was lower - 6.6%. This is the minimum figure for the last 28 years. But GDP data is still preliminary and can be adjusted upwards.
If, for example, GDP ceases to grow, this will lead to a sharp increase in unemployment in the Middle Kingdom. Obviously, GDP cannot grow indefinitely without environmental consequences. Sooner or later, the country will face a choice between rising unemployment and environmental disaster.
Causes of unemployment
When calculating the statistics of unemployment statistics in China, there is no uniform and constant methodology. In addition, they are held only in cities. Official data do not take into account the so-called hidden unemployment. Therefore, researchers believe that its real level in the country can be much higher - from 8.1 to 20% (according to different centers). This means that the unemployment rate in China is many times higher than official figures.
Due to economic difficulties in industries, many may fall under the reduction, but they are officially considered working. The unemployment rate is especially high among the poorly educated population and youth. To keep the problem in check, the authorities are trying to keep afloat even unprofitable enterprises. Otherwise, the state is forced to pay benefits. This problem is especially relevant for the north of the country.
A decrease in the number of workers is inevitable for the agricultural sector in China. The growth of mechanization and the reduction of sown areas reduce the need for labor. However, a huge number of the country's inhabitants are involved in this sector. As a result, the problem of unemployment is growing. The mass closure of coal and metallurgical industries also affects its level. At the same time, the number of jobs in the field of alternative energy is growing.
In pursuit of cheaper labor, many industrial companies are moving production to poorer Asian countries: India, Vietnam, and Southeast Asian countries. As a result, some Chinese workers are left without work.
Possible consequences for our country
Located on the border with this huge power, Russia is heavily dependent on the processes that take place there. Many are concerned about the phenomenon of Chinese migration. The more unemployment in China, the more people leave from there to neighboring countries, including Russia and Kazakhstan. Moreover, the latter actually agrees to the legal placement of residents from China on its territory, being economically dependent on it. Every year the problem becomes more acute.
A possible recession in the Chinese economy may reduce the export of our products to the Middle Kingdom, which will also become a negative factor for our country.