Unemployment in China Coursework Assignment Paper (Coursework Sample)

Unemployment in China
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Unemployment in China
The economy of China is one that has astonished many economists in the rate of growth within the last two decades. Currently, the economy of China is ranked second globally with a nominal GDP of USD9.2 trillion, and this was not the case back in 1978 when the nominal gross domestic product was USD214 billion. It was the period before the introduction of the economic reforms. China was transformed into manufacturing hub and apparently the largest figures been brought forward by secondary sectors that include industry and construction. It is policies that have managed to concur aspects of unemployment in China and thus be able to sustain the fast growing economy. In Kevin Yao and Yawen Chen reports for the Reuters website they indicate that the risk of mass unemployment has been alarmed in China as the government is strategizing on reducing excess and inefficient capacity in the mining sector and smokestack industries. The government considers this as a move to boosts its economy and further be able to reduce pollution which has been an issue of discussion for a long duration.
Despite the cabinet push on monetary policy that would help China through this transition the problem of unemployment still threatens the stability of the Chinese economy. The Chinese economy is one that has been on a constant rapid growth and thus if a massive change in the employment status would automatically be a blow to the stability of the entire economy. With the reforms, the government will leave millions out of their jobs. The government should consider unemployment as an aspect of macroeconomics that is gradual to combat, unlike any other issue. The relationship between unemployment and the economic growth as proposed by Okun`s law in 1962 states that a 3% increase in output will affect the outcome in 1% decrease in the unemployment. Thus building from a drop in unemployment of millions will reduce the rate of economic growth drastically as unemployment in macroeconomics can be related to various causes which China fits.
The recent Unemployment rate in China
In order to continue increasing the employment rate the government has adopted a number of strategies. The cabinet suggestion includes encouraging entrepreneurship and financial boost o small enterprises by offering incubation basis and tax policy bonus so as to be able to fight. Further policies would include helping university students who have graduated in the affected sectors to diversify their options. According to the information released by the Ministry of Human Resource and Social Security 7.95 million students will be expected to graduate in this year and this is 300,000 increase from the previous year. It is an indication that balancing the unemployment rate for China a...