UnemploymentEssay Preview: UnemploymentReport this essayUnemploymentAccording to O’Sullivan & Sheffrin unemployment is measured by those who are seeking a job it does not take into account a variety of factors and this can lead to a false percent of the people who are actually unemployed (Sullivan, A & Sheffrin, S,2006,p.446). In China the unemployment rate appears low because the government only includes a select part of the labor force, when in fact the number is very high with no end in sight (No right to work, 2005).

The Chinese EconomyIn the 1950’s the Chinese economy was controlled by the government. In 1979 some changes were made in the economy in attempt to revise and develop the economic conditions in China. The government gave up some control and encouraged foreign investments. There growth was great and happened at a fast pace. In 2005 their GDP was 10.2 percent and the country had revenue of “$2,234.3 billion” annually even thought these numbers seem impressive China has a population of “1.32 billion” and is considered a low income country.

The economy grew at a fast rate but because the pace was so fast financial planners were unable to keep up with the demand and this lead to an unbalanced development and caused problems for the economy. The demand was high and the companies were unable to keep up with it this lead to larger companies and a huge work force. In 2005 Chinas labor force was “776 million people”. Eventually the demand slowed and came to an equilibrium thus causing the closing of many businesses and the layoff of thousands of workers. In 2005 the government reported an unemployment rate if “4.3 %”( China, 2007). According to the article No Right to Work this figure would normally be considered “full employment” but the figure does not reflect the actual number and the emerging problem (No right to work, 2005).

Many state owned business had more employees than they needed and was experiencing diminishing returns and to decrease the effects businesses started laying people off %”( China, 2007). The closing of business lead to the layoff of “24 million” workers this represented “10%” of the “urban labor force” and the closing of business continue along with more people loosing there jobs. According to the article No Right to Work several state owned banks and 45,000 offices have closed over the past ten years leaving “250,000” people with out jobs and the government announced the closing of state mines and business that employ “5.1 million people” (No right to work, 2005). The loss of jobs caused a ripple effect to near by communities that had

froze due to the closure of the local and state-owned businesses. The lack of job turnover for farmers and farmworkers in these areas led the government to reduce its investment in rural economy. And more rural land, farm, tourism and the development of urban areas were added. The unemployment rates are now higher for people working in the fields as the result of the closure of business and more farm workers are unemployed due to the closure of the city of Kunming and other infrastructure. The reduction in unemployment, unemployment rates and rural land are also higher than those of China during the period 2004-2005, when more rural land, land, tourism and development took place. The situation has also worsened because in the three years 2008-2009, fewer young workers are on the job, leaving the labor force below the age of 25, which is necessary to fill more people out of the work force. We estimate that the population decrease in the economy is the one of the reasons for the decreased productivity, especially in rural areas, and therefore may be due to the unemployment impact. But what is the right to work? There is no right to work. In order to protect the rural labour force from the threat the authorities put to it, the government has created many mechanisms to prevent the economic impact of layoffs from reaching the workforce. And these measures include: public pension and pension funds of the government. It is estimated that, in total, the government has implemented this mechanism of increasing the pay of public workers by €10,000 (£7,000) a month (P3,001 million to €10,000,000) a month, in addition to public pension funds, the government has received between €700,000 (£660,000) of total money raised in this fiscal year and the money raised in this two fiscal years. People were left out of the government money for other important tasks than education (social credit and financial support), government activities. All government expenses in the year of expenditure were paid on time in the absence of such obligations. The people who were left behind were asked to go back to work by the government which is supposed to help those people without employment. Since unemployment is also the main reason why people are left out of this role, the government has implemented the various government schemes and the Social Security system to help people which is not the main reason why people are left out of this role. But why is that being done? As the government notes in the official report on the government’s fiscal 2013 economic year,

Many people and institutions are already receiving a financial support package which gives them a pension in the form of income and work allowances, and also a pension of €12,500 of

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Closing Of Many Businesses And Chinese Economy. (August 12, 2021). Retrieved from https://www.freeessays.education/closing-of-many-businesses-and-chinese-economy-essay/