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China saw 6.99 million college graduates in 2013,
as well as the toughest job season in history.
Reportedly, the number of college graduates
will grow in the next few years.
The figure, plus the new working-age population,
will make employment difficulties continue.
The Chinese Communist Party (CCP) officials have
alleged to face an unparalleled difficult job market.
What is the reason behind it?
Let's take a look at our report.
In 2013, China's college graduates had peaked
at 6.99 million, an increase of 190,000 over 2012.
In contrast, job offers are down by 15%.
2013 has become "the toughest employment year" in history.
Reportedly, the CCP senior Human Resources officials have
said in 2013, over 3 million college grads may not get a job.
Earlier on, media reported that by May, only 20% of
recent graduates in Shanghai found jobs.
In Beijing, the figure was less than 40%.
In Guangzhou, it was 30%, 10% below that in 2012.
An official survey shows that China's migrant workers
have reached over 260 million,
an increase in over 9.8 million in 2012.
Yet, only about 160 million of them are employed.
The survey indicates that in the next five years, China's
colleges will maintain its graduates size of 7 million.
By 2020, China's working-age population (20~59 years old)
will have peaked at 831 million.
Yin Weimin, the Human Resources Minister has openly
said that China's employment issue is difficult and
complex, which is unparalleled in the world.
Former Hong Kong news director of Ta Kung Pao and
Da Zhou Kan, Zhu Jianguo, comments.
He says China's tough job market is a result of
its current social and political system.
The system has eliminated self-employment enthusiasm
of private enterprises and of college graduates.
Zhu Jianguo: "The current economic deterioration is
related to its political system with Chinese characteristics.
The system cracks down on private enterprises,
but it entitles state-owned enterprises to privileges,
it is a political setback."
Zhu Jianguo says that 20 years have passed since the
CCP proposed to build an economy market in China.
Today, it has created a false market economy,
which is corrupt and bureaucratically controlled.
Serious corruption has scared away
people's enterprising spirit.
A one-year effort in establishing a business earns
less than the gains pocketed from property speculation.
Zhu adds that China's harsh employment situation has
actually resulted from the CCP's delaying political reform.
Economist Duan Shaoyi thinks that a market economy
is the best economic system.
Yet, China's economic system still has a lot of problems.
Duan Shaoyi: "Overall, I think one of the reasons
behind current employment difficulty is that
state owned enterprise (SOE)
have been given too many privileges.
Private enterprise have lacked
equitable chances for their development."
Data from the China Association of Enterprises shows that
in 2012, total revenues generated by China's top 500
enterprises were about 45 trillion yuan.
It was equivalent to 95.3% of China's GDP in 2011.
About 82% of the revenue came from 310 SOEs.
Official data shows that in 2011, 117 central SOEs
contributed to nearly 43% of the total GDP.
Yet, the number of SOEs staff only accounts for
8.8% of the total employed population.
SOE executives' income has also exposed inequality.
In 2008, president of China National Offshore Oil Corp.
earned over 12 million yuan.
Southern Airlines, with an over 4.8-billion-yuan deficit,
gave its executives a 50% pay-rise.
In reality, the SOE privileges have led to low efficiency.
Internet access charges in China are several times
higher than that in developed countries.
Whilst the average broadband speed is only half.
The pre-tax price of refined oil sold by Petro China
and Sinopec are 31% higher than in western countries.
Yet, its mining cost is below 1/10 of the global norm.
Beijing-based Unirule Institute of Economics
has made an estimate.
In China's five areas of banking, petroleum,
telecommunications, railways and table salts,
the administrative monopoly has caused a loss
of social welfare of up to 1,910 billion yuan.
Zhu Jianguo: "The sad thing is that the authorities
just view tight job market as an economic issue.
They dare not face the reason behind it.
So this will only miss the last opportunity for treatment,
causing the society to collapse."
Zhu Jianguo adds that currently, Chinese society is riddled
with extreme unfairness, hostility and resentment.
Mass conflicts have continued to emerge nationwide.
He warns that this is heading for disaster.