Over 24 million people unemployed in China!

Over 23 million Chinese can not afford food and clothes. (China Photos/Getty Images)

Migrant workers rummage through garbage in Changchun, Jilin Province, China.

The Chinese government indicated on August 23 that total unemployment in the country will exceed 24 million people in 2009. Numerous media have published analysis indicating the potential impact on social stability caused by record unemployment.

Beijing’s China Daily newspaper quoted Mr. Yin Weimin, Director of Human Resources of the Social Security Department. Mr. Yin explained that total unemployment will exceed 24 million people in 2009. Even if China reaches the economic growth target of 8% this year, half of the jobless work force may still be unable to find jobs.

According to government statistics, the second quarter 2009 unemployment rate in China remained flat at 4.3% compared to the first quarter.

However, the BBC Chinese website questioned the validity of that statistic. They believe that 4.3% does not accurately reflect the unemployment situation in China since it only accounts for eligible working age people registered in the towns and cities. The calculation ignores the vast numbers of unemployed farmers, migrant workers and newly-graduated college students.

The Chinese government numbers show that international markets for Chinese export products have contracted greatly due to the global economic crisis. In 2008, many manufacturing plants were shut down, leaving about 30 million migrant workers jobless.

For the Chinese government, the increasing unemployment issue has become a serious problem and may cause social unrest. It would be a real test of the “stable and harmonious” policy that is promoted and emphasized by the authorities in Beijing.