Introduction LO:
China is well-known for its trade-off between (its promise of) economic progress and (the lack of individual) freedom (eg, AEA-2018, HBR-2015). However, that trade-off has been deteriorating ever since its disastrous zero-Covid policy.
Unemployment issues have been worsening due to China’s political targeting of its entrepreneurs (eg, disappearance, imprisonment). Why would employers care about youth unemployment in such circumstances??
“In the Spring of 2024 China’s prime minister, Li Qiang, and his colleagues will face an awkward dilemma. They will have to choose between reviving the morale of entrepreneurs or safeguarding the credibility of the ruling Communist Party.”
Source: The Economist, 13 November 2023: China faces a trade-off between confidence and credibility
In my view, this is an example of the consequences of monism, a structure in which only (political) Power is relevant; Knowledge and Love are (political) subordinates. At least in Western dualism, Knowledge and Power are – more or less – in balance.
My answer to SCMP’s question is simple: No.
Can China solve its unemployment issues? (South China Morning Post)
Date: 15 August 2024
“China’s economic struggles are exacerbating the country’s deep-lying unemployment issues. Youth unemployment rate hit a headline-grabbing 21.3% in June 2023 before declining when the data returned in December after it was “further improved and optimised”.
However, pressure is mounting again as a record 11.79 million college graduates enter the job market this summer amid the country’s sluggish economic growth.
President Xi Jinping called employment a “most basic livelihood concern”, stating it is crucial for the healthy development and long-term stability of the country. Pledged as a top priority for the central government, will young jobseekers find it easier to secure their dream job?
But this could pose a challenge due to the nation’s economic slowdown, prompting many businesses to downsize their operations. Top firms in key industries have either chosen to slash staff-related expenses or reduce headcount to rein in costs.
Prominent electric-car makers, financial institutions and real estate giants have all been hit by the economic storm despite efforts in the form of rescue packages from the government. Even tech giants Alibaba and Tencent were not spared, downsizing 12.8% and 2.8% respectively. Alibaba is the owner of the South China Morning Post.
To help you understand the challenges Beijing faces in unemployment, SCMP has produced an 8-part series that explores the range of issues facing the world’s second-largest economy, from young people to “the curse of 35”, as well as gig workers and the political implications.”
Source: SCMP, 15 August 2024: Can China solve its unemployment issues?
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