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

18 Pages Posted: 17 Nov 2016

See all articles by Jun Zhang

Jun Zhang

Fudan University - China Center for Economic Studies (CCES)

Liheng Xu

Fudan University - China Center for Economic Studies (CCES)

Huihui Zhang

Fudan University - School of Economics

Date Written: November–December 2016

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.

Keywords: employment, unemployment rate, 053

JEL Classification: J64

Suggested Citation

Zhang, Jun and Xu, Liheng and Zhang, Huihui, Uncovering the Truth About Chinese Urban Unemployment Rates: 2005–2012 (November–December 2016). China & World Economy, Vol. 24, Issue 6, pp. 1-18, 2016, Available at SSRN: https://ssrn.com/abstract=2870116 or http://dx.doi.org/10.1111/cwe.12178

Jun Zhang (Contact Author)

Fudan University - China Center for Economic Studies (CCES) ( email )

China

Liheng Xu

Fudan University - China Center for Economic Studies (CCES) ( email )

Shanghai
China

Huihui Zhang

Fudan University - School of Economics ( email )

600 GuoQuan Road
Shanghai, 200433
China

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