Judging from an investigation conducted in December and involving 100 economists, we can see that unemployment has become the toughest and most urgent problem that Chinese economy encountered last year. Ninety percent of the economists surveyed gave their opinion that the enlarging group of the unemployed is the top challenge for the Chinese economy, outweighing the economic slowdown and social instability. More seriously, the survey showed the unprecedented decline of economists’ confidence since 2004.

“The survey results show that government policies should be directed at addressing unemployment,” said Lin Yixiang, chairman and CEO of TX Investment Consulting Co, one of the conductors of the survey.

The deteriorating situation of unemployment which arouse anxiety is also an indication of the blue prosperity of the nation’s job market since over 20 million migrant workers covering sixty percent of all, have been driven out of the market over the past few months. Apart from the migrant workers, the registered urban unemployment rate is predicted by policymakers to jump from 4.2 percent at the end of 2008 to 4.6 in 2009. As for the economic growth in the country it has dropped from 13 percent in 2007 to 9 percent in 2008 and it will, as foretold by the International Monetary Fund, drop to as low as 6.7 percent, far below 8 percent that is the perennial goal set by the government.

Effective steps have been taken in reaction of the economic recession. In the last November the government has made decision to stimulate the weakening economy with a 4 trillion stimulus package. Just at about the same time, a schedule was mapped out to promote the ten chief industries in the country. Policymakers said in January that 850 billion yuan will be spent to ensure that the country’s 1.3 billion people can afford to gain access to the healthcare by 2010.

But, decision is proven to be not well received. Eighty-six percent of the economist posed their opposition that the government should concern more on such social spending as education, medical care and the social security system. They also called for a reduction on direct investment in infrastructure projects, with the consideration on the misallocation of resources and corruption.

More than 70 percent the economists showed their worry that the Chinese economic slump will go on this year, reaching the worst in summer, while three-fifths of the economists predicted that the global situation won’t rebound until 2010.

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China, economy, indication, investigation, recession, unemployment