China Economy Torn Between Controlled Reliance of Unemployment Scare
Jaccqueline Bargas | | Jul 19, 2013 05:14 PM EDT |
President Xi Jinping has been working with Premier Le Keqiang in the hopes of reducing China's reliance on factory investments. China is known to hold large factories serving different countries with various products.
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This shift may impose a great deal of change as the shift may affect thousands of factory workers relying on employment to sustain a daily life. A reduced economic rate affects the stability of China in terms of its economic prosperity.
The chief economist of the Bank of Communications in Shanghai said, "The persistent weakness in the manufacturing sector will have a bigger impact on jobs. There is no room for complacency."
The economic growth of China has been a source of inspiration, and even envy, in other countries. However, this change may be forgotten as the economy began to slow down. Still, Chinese government sees this as to no concern.
The manager of Beijing jobs, Wang Yuehu said, "Overall, the job market is stable." He added that more people are getting employed in the service sector even if the manufacturing industry is slowing down. The manufacturing plants have been taken over by the services sector. In 2007, the services sector contributes to 36 percent of employment while the factories only contributed 30 percent.
The current data still has to be released but China's purchasing managers say that the services are growing at a quick rate as compared to marketing. The growth of services was seen for the past year are from 53.9 to 56.7. This rate is faster than the manufacturing with records of 49. To 50.9.
It was also seen that the jobs in computer, technology and property rose as compared to services and manufacturing. Currently, the rate of unemployment is 4.1 percent. A value criticized by several private sector economists.
Beijing only concern is when a sudden economic drop occurs, millions of factory workers may go home without any job to sustain daily living.
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