China’s unemployment rate has hit its lowest point in multiple years at 3.95 percent by the end of last month, but employment still faces challenges as the economy pushes ahead with structural reforms, the Chinese Ministry of Human Resources and Social Security said yesterday.
The ministry of human resources and social security said in a statement that 10.97 million new jobs had been created in China from January to last month, a growth of 300,000 compared with the previous year.
The figure represents the ministry having essentially fulfilled its year-end target, it said in a prepared statement given to reporters.
Despite being ahead of schedule, Chinese Minister of Human Resources and Social Security Yin Weimin (尹蔚民) told reporters that “raising the capacity to employ workers overall still faces large pressures.”
“We need to create 15 million jobs per year,” Yin said, singling out China’s more than 8 million new university graduates that enter the job market each year as one group in need of additional employment.
Yin also said the low unemployment rate in the face of an overall slowdown in the economy was largely due to the new Internet economy and entrepreneurship, adding that the ministry would actively support start-ups to help them “thrive.”
From 2015 to 2020, every one percent increase in GDP is expected to equal roughly 1.8 million new jobs, Yin said.
The labor ministry’s announcement was made as part of the Chinese Communist Party’s 19th National Congress, which opened on Wednesday last week and runs until Tuesday.
China’s official unemployment rate has remained generally stable as economic growth has dipped to a 26-year low and the government forges ahead with ambitious plans to cut back on industrial capacity.
The economy grew 6.8 percent in the third quarter of the year and 6.9 percent in the first half.
On Saturday, Chinese National Development and Reform Commission Chairman He Lifeng (何立峰) said the country’s economy is on track to meet the official growth target for this year.
“We expect to achieve the full-year growth target of about 6.5 percent,” he told a briefing on the sidelines of the congress.
On an annual basis, the official unemployment rate was last below 4 percent in 2001, when it was 3.6 percent, according to data from the Chinese National Bureau of Statistics.
The rate ended last year at 4.02 percent after not budging from 4.1 percent from 2010 to 2015.
The government has said that some sectors, especially those targeted by capacity cuts, such as coal and steel, still show signs of unresolved employment challenges.
The ministry in April said that China would need to resettle about half-a-million workers that are to lose jobs in the coal and steel sectors this year.
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
NO VIRUS BLUES: A SEMI Taiwan official said that the virus does not slow down the global semiconductor industry’s investment in manufacturing equipment The production value of the nation’s semiconductor industry is expected to grow 16.7 percent this year from last year, outpacing the global industry’s 3.3 percent growth, industry association SEMI said yesterday. That would help Taiwan safeguard its second spot in the global semiconductor market with a production value of more than NT$3 trillion (US$102.73 billion), SEMI Taiwan president Terry Tsao (曹世綸) told a media briefing in Taipei for the Semicon Taiwan trade show beginning today. The global semiconductor industry’s production value is expected to increase to US$426 billion this year, SEMI said. In terms of semiconductor equipment investment, equipment billings from Taiwanese firms
Intel Corp has received licenses from US authorities to continue supplying certain products to Huawei Technologies Co (華為), a company spokesman said yesterday. Washington has been pushing governments around to world to squeeze out Huawei, saying that the telecom giant would hand data to Beijing for espionage. From Monday last week, new curbs have barred US companies from supplying or servicing Huawei. This week, the state-backed China Securities Journal reported that Intel had received permission to supply Huawei. China’s Semiconductor Manufacturing International Corp (SMIC, 中芯國際), which uses US-origin equipment to make chips for Huawei and other companies, last week confirmed that it had sought
Taipei Times: When do you think the hospitality industry can return to how it was before the COVID-19 pandemic? How does Formosa International Hotels Group (FIH, 晶華酒店集團) fare this quarter and beyond? FIH chairman Steve Pan (潘思亮): The virus outbreak will have a serious impact on business travel, driven mainly by meetings, incentive travel, conferences and exhibitions over the past three decades. For the past six months, many businesspeople have grown used to exchanging information on the Internet, where more people can participate. The trend might sustain for three to five years until people are vaccinated and it is safe to