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While this may keep unemployment rates under check, such jobs generally pay less, and could mean a step down in quality of living, reduced spending power and potentially increased dissatisfaction. At the recent annual session of parliament China's leaders stressed that a major restructuring of the economy, stripping out excess industrial capacity, would not mean a corresponding spike in jobless rates.
He says the options available to him and other workers are limited to jobs that often pay less. Longmay has said it would cut , jobs, and local media reports say it has already relocated 22, workers to agriculture, timber and public service industries.
Thousands of miners from the government-owned group marched through the streets of Shuangyashan a week ago to protest against unpaid wages. That risks creating a cohort of middle-aged blue-collar workers with bleak prospects in an economy growing at its slowest rate in decades. The government is pushing investment in high-tech sectors that are unlikely to need their services. While nobody suggests the situation is as dire as in the s, when street corners were crowded with state employees laid off in the name of restructuring, there are major long-term risks.
Slower economic growth means it will be harder to absorb redundant workers. Local governments in distressed regions like the northeast lack the capacity to do much more than hand them a mop or a shovel. Where workers do manage to secure new jobs, many are likely to find themselves demoted, earning less and with bleak career prospects. It's going to be very difficult for them to find another job. Stagnant or declining wages would be a major impediment to China's shift to a consumption-driven economy.
