China’s Job Market Faces ‘Mismatch’ in Skills
This mismatch in skills will be a hot topic for discussion among China’s leaders at the four-day Third Plenum meeting set to start in Beijing on November 7, 2013. Other items on the agenda include considering the cutting of consumption taxes, breaking up certain state-owned monopolies, and deregulating banking and currency markets. But it is generally agreed that the main theme for the meeting will be to focus on creating a consumer-led economy and halt the rising rate of unemployment experienced by educated youth. In a recently published speech by Prime Minister Li Keqiang to trade union officials, he stated that securing sufficient jobs for citizens was the top economic priority of the Chinese government.
China’s expansion in the manufacturing sector in response to world-wide demand for consumer goods has resulted in huge factory complexes and housing for workers being built. But despite ongoing efforts to encourage young people to take jobs in the manufacturing sector, surveys reveal that the majority are unwilling to do so. In addition to avoiding jobs as factory workers, many young people are not keen to work in service industries, such as restaurants and hotels. Some analysts have noted that children born at the time of China’s “one child” policy do not see the need to save for retirement, or plan for the future in the way their parent’s did.