TIANJIN — A survey of 31 big- and medium-sized Chinese cities found the unemployment rate remained at around 5 percent in the first eight months of the year, despite an economic slowdown, Premier Li Keqiang said on Sept 10.
It was the first time China formally disclosed a surveyed urban unemployment rate.
“More than 9.7 million urban jobs were created (up to the end of August), which is over one hundred thousand more compared with the same period last year,” Li said in a keynote speech at the opening of the Summer Davos forum.
China introduced the registered urban unemployment rate in the 1980s as an important indicator for macroeconomic adjustment. But critics have questioned its accuracy saying it understates the true unemployment rate.
The survey rate counts only permanent urban residents who register for unemployment benefits with local governments. It is not based on representative sample surveys. It also excludes temporary residents in cities.
In the first half of this year, the registered urban unemployment rate stood low at 4.08 percent, according to the Ministry of Human Resources and Social Security.
The surveyed unemployment rate disclosure came more than a month after the cabinet decided the statistics authority should employ a more extensive sample survey to more accurately compile the jobless rate in cities to better reflect true unemployment. It would allow policymakers to better understand the job market, the cabinet said.
Li told the forum, held in North China’s port city of Tianjin, that new steps for reform taken by the Chinese government have helped to create more jobs.
Since the beginning of this year, the Chinese government has sped up the reform of the administrative review and approval system.
More than 200 items have been removed or delegated to lower levels administrative approval. And the business registration reform, among others, has been carried out nationwide, the premier said.
