Why does economic slowdown increase employment?

Although the economic growth rate has slowed down in recent years, due to the expansion of the economic aggregate, China's GDP has driven a larger increase in employment than before, and employment has thus shown a steady growth trend. Xin Changxing, deputy director of the Ministry of Human Resources and Social Security, said that the employment situation in the first half of this year was generally stable and the unemployment rate remained at a low level.
[The employment situation is stable and better]
Employment in China has remained stable. According to statistics, urban new employment has been maintained at more than 12 million in recent years, and the urban registered unemployment rate has remained at a low level of around 4.1%. The employment situation of college graduates is generally stable, and the transfer of rural labor force is generally stable. In 2013, the total number of migrant workers reached 269 million.
At present, the employment pattern in China has undergone positive changes, and the employment structure has gradually improved. The proportion of employment in the tertiary industry exceeded the proportion of employment in the primary industry for the first time in 2011. In 2013, the proportion of employed persons in the primary, secondary and tertiary industries was 31.4:30.1:38.5.
According to the latest statistics, from January to May this year, the number of newly-employed people in urban areas, the number of reemployed people in urban areas, and the number of people employed in employment difficulties reached 6.07 million, 2.48 million and 730,000, respectively.
Xinchangxing pointed out that the employment situation in the first half of the year was generally stable. The number of newly-employed people in urban areas, the number of newly-employed people in urban areas, and the number of people employed in employment difficulties increased steadily, and the unemployment rate remained at a low level.
[Economic transformation results]
The economic development situation directly affects the employment situation. Why is China’s economic growth slowing down and employment increasing? Niu Li, director of the Macroeconomic Research Office of the Economic Forecasting Department of the National Information Center, said in an interview with this reporter that one reason is that the population structure of China has changed in the past 10 years, the number of people requiring employment has declined, and the demand for jobs has slowed down.
"The second reason is that although the economic growth rate has slowed down, the economic aggregate has increased, and the number of people who drive GDP growth has been much larger than before." Niu Li said. It is understood that the increase in GDP in the past few years has led to employment of more than 1 million people. In recent years, every one percentage point increase in the economy has driven employment of about 1.5 million people.
The optimization of economic structure has expanded the employment space. Niu Li explained that the economic structure has changed and the service industry has developed more than the secondary industry. Compared with the manufacturing industry, the service industry has driven more jobs.
The government’s decentralization and decentralization also promoted employment. In the first quarter of this year, China newly registered nearly 2.4 million market players, a year-on-year increase of more than 40%. “Simple government decentralization and deepening reform have further stimulated the innovation and entrepreneurial vitality of market players. As a main channel for attracting employment, small and micro enterprises and individual and private economies have been booming. This ability to promote employment cannot be underestimated.” China Human Resources and Society Li Zhong, spokesman for the Ministry of Security, said.
When the economic situation is tense, the state’s policy to promote employment will be stronger. China's "more active employment policy" has been implemented for more than 10 years, macroeconomic policies have paid more attention to employment growth, and the "employment priority" development strategy has been generally recognized, and there are a set of specific measures to stabilize posts and support difficult groups.
The industrial gradient transfer has also led to the rise of new jobs. “In March of this year, we made statistics. The proportion of new employment in urban areas in the eastern, central and western regions was 45.1:30.5:24.4, respectively.” Li Zhong said, “At the same time, from the situation of rural surplus labor transfer, rural surplus labor in the central and western regions. The number of people who are close to the field has increased further."
[Structural contradictions still exist]
At present, there are still new problems and new challenges in the employment field, and the employment situation is still complicated. Yin Weimin, Minister of Human and Social Affairs, said that it is mainly reflected in three aspects. First, the contradiction between the total supply and demand of labor will exist for a long time. Second, the structural contradictions in employment are more prominent. At present, the labor market is facing a serious shortage of ordinary workers and skilled workers in the first line, and it also faces the employment difficulties of college graduates and urban employment difficulties. Especially with the acceleration of transformation and upgrading, this contradiction will be more prominent due to the combined effect of changes in industrial demand and changes in labor supply. In addition, some backward production capacity is facing the elimination, some excess capacity needs to be resolved, and some workers need to face the problem of re-employment and re-employment. If not handled well, it may bring unemployment risks in some areas. Third, the employment task of college graduates is even more arduous.
To ensure a stable employment situation, Yin Weimin said that the employment priority strategy will be implemented in depth in the future. Promote all levels of government to effectively stabilize and expand employment as a priority goal of economic and social development, and establish a linkage mechanism between economic development and employment expansion. Rationally adjust the industrial layout and economic structure, on the one hand to promote transformation and upgrading, create more management, intellectual and technical jobs suitable for high-quality workers; on the other hand, promote the gradient transfer between industrial regions and encourage the development of service industries Labor-intensive industries create more adequate employment opportunities. Actively promote the new urbanization construction with people as the center, and promote the stable employment of the rural transfer labor force by urbanization.
For the completion of the employment goal, the Ministry of Human Resources and Social Affairs has now changed the idea of ​​considering the level of employment and then considering economic growth. It is estimated that this year, more than 16 million new laborers need to be employed in urban areas. Considering the recruitment of natural attrition can solve the employment of 5 million people. To maintain the unemployment rate not to exceed 4.6%, it is necessary to achieve 10 million new jobs in urban areas this year. As long as the economic growth target of about 7.5% is achieved, it is still certain that this employment goal will be achieved.

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