While the government is fearfully watching China´s number of jobless, the official figures have very little meaning, says financial analyst Sara Hsu at the Deutsche Welle. “We do not even know the labor force participation rate, which is essential in calculating the unemployment rate.”
The Deutsche Welle:
Notwithstanding the indications in support of a tightening job market, many economists doubt the reliability of China’s official unemployment data, with some claiming the country’s real jobless rate could be as high as 10 to 12 percent.
Sara Hsu, an assistant professor and expert on Chinese economy at the State University of New York at New Paltz, says the official statistics cannot be relied upon since they focus mainly on the total number of people who are registered as unemployed.
“But not everyone who is unemployed registers at the local employment service agencies, since benefits are insufficient,” she told DW, adding that “we do not even know the labor force participation rate, which is essential in calculating the unemployment rate.”
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