China has greatly improved its unemployment statistics, compared to the past, but they still do not give the real picture, says leading economist Arthur Kroeber, author of China’s Economy: What Everyone Needs to Know®, to the South China Morning Post. State intervention would still be a factor, he said.
The South China Morning Post:
Arthur Kroeber, co-founder and research head of Gavekal Dragonomics, said the broad-based jobless rate was “an improvement” on the previous one.
The quality of Chinese economic data has been an issue of debate for decades, with independent economists questioning the figures and Beijing defending their reliability. But few indicators have drawn as much criticism as the registered jobless rate – which was 3.9 per cent at the end of last year…
[N]ot everyone is convinced that Beijing’s new unemployment rate will provide the full picture.
Kroeber at Gavekal said it did not adequately measure underemployment, such as high-skill workers in low-skill jobs and people in part-time work who would rather be employed full-time. He also said state intervention would still be a factor – Li said in his report that Beijing wanted to keep the rate under 5.5 per cent this year.
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