Photo: China's local "recruitment difficulties" as a whol
Recently, the southeast coastal areas there are certain difficulties SMEs operating conditions, and labor conditions led to a variety of interpretations. Some people say that is because the labor supply due to insufficient labor costs, the enterprise has brought considerable pressure on some people say SMEs operating difficulties will result in massive unemployment.
China's current labor supply and demand and the employment situation exactly how? Reporter interviewed the Department of Human Resources and Social Security official(http://www.f-paper.com/).

The first half of new jobs Seventy operational difficulties SMEs have limited impact on employment

Human Resources and Social Ministry spokesman Yin Chengji announced July 25: China's employment situation in the first half of the overall stability of .1-6 months, 655 million new jobs in cities and towns, the annual target of 900 million 73% urban unemployed re-employment of 2.9 million, the annual goal of 500 million 58% have difficulty finding employment in employment 93 million to complete the annual target of 100 million 93% second quarter, there is the national number of 9.08 million registered urban unemployment people, the end of the first quarter decreased by 1 million registered urban unemployment rate was 4.1%, flat with last year.

In 2010, China achieved a total of 1168 million new urban jobs, return to the international financial crisis before the higher level from the first half of 2011 the situation this year is expected to more than 12 million people(Finance News http://www.f-paper.com/).

On the one hand, the employment situation continues, the labor market supply and demand very well, on the other hand the number of job vacancies in many areas more than number of job seekers, companies are complaining about the 'recruitment difficulties.' Does this mean that China's employment could now 'rest easy' 'Labor is not enough' is the key to solve the problem?

Department official who stressed the situation to determine the overall look and see the general trend this year in the first half of China's GDP growth reached 9.6%. With the steady Economic growth, increased demand for enterprise and employment in some areas is indeed a structural shortage of labor . But as a whole, China's labor force has not changed the basic pattern of supply exceeding demand, the employment pressure is still great.

According to estimates, '1025' period, China's population will reach 1.37 billion people, labor resources will reach the peak of urban employment of labor per year on average about 25 million people, and the 'Eleventh Five-Year' compared to, not less, but more than 100 million. Considering maintain steady and rapid economic development, urban-based acceleration, accelerate the development of services and other favorable factors, as well as exports slowed down, restructuring to generate new negative factors such as unemployment, even through the efforts of urban employment scale maintained at 900 million or more, plus added natural attrition, the two add up to about 12 million or so, demand and supply gap remains large. the employment of rural labor force need to be transferred conservative estimate of the size of seven or eight million people, which is played the potential advantages of abundant labor resources, and also the pressure of a real job.

Recent spread of the east coast for SMEs 'closures', Yin Chengji that some companies temporary difficulties may occur half the production of the state, can not operate at full capacity, this is the case, but can not be called 'cool' negative impact on employment is very limited.

Structural labor shortage will persist, not enough can not be determined that the labor

Widespread across the country for the 'recruitment difficulties', the Department official who said, 'recruitment difficulties' is the employment of 'structural shortage' problem, reflects the structural problems of employment, because the market is always at the In the constant state of flux, due to information asymmetry, combined with supply and demand imbalance, so there will be structural unemployment, which in any country, any time still exists, albeit to varying degrees, characteristics of different performance in different ways.

Lao Dongli structural shortage is not a new problem. Behind the reflection of a number of factors. First, a reflection of our economic recovery to good corporate labor demand, employment opportunities are increasing and the Midwest, attracting a part of the migrant workers in local employment, as benefiting the agriculture policy development and implementation of farm income, agriculture has attracted some of the people to return home, or in the local transfer of employment. Second, reflecting the quality of the structure does not meet the labor needs of the job market, skilled workers, especially high skills shortages. Third, reflecting some of the corporate remuneration, working environment, employment and changing the way the pattern of labor supply and demand does not fit in with the wishes of the employment of workers, income is expected to not meet expectations and career development for example, Many manufacturing companies recruit only in recruitment, '35 years of age,' labor, the labor market in China, over the age of 35 account for 50% or more. abandoned more than half of the labor force, a 'recruitment difficulties' is inevitable in addition, the reason for the community on the 'recruitment difficulties' impressive, with labor parties (mainly the voice of business is easier than ordinary workers related to the release.

Although the 'recruitment difficulties' throughout the country to varying degrees, but the Department who has been denied because the labor force due to not enough. According to reports, despite the current age of new entrants into the labor section of the population growth rate declined, but the total still increase, and, employment is not facing the main current of new people entering working age, because age and enter the labor market, human resources, there is a time difference, and separated by a delay to continue their Education process, although current new entrants into the working-age population growth has slowed, but because of the 'Eleventh Five-Year' period, a large number of college graduates enrolled in another into the market, together with other youth workers and shift workers, and rural employment, the reality of the total the amount of pressure is still quite large. Human Resources and Social Research Institute of the Ministry of Labor estimates show that China's working age population aged 15-59 in 2013, 2021 to achieve 'double peak', advantages of labor supply will continue to maintain.

Comparative advantage in labor because of minimum wage increases will not be easily lost

In the first half, Beijing, Tianjin, Shanxi and other 18 provinces and autonomous regions have adjusted the minimum wage. The highest monthly minimum wage in Shenzhen reached 1320 yuan, the highest hourly minimum wage to 13 yuan in Beijing, according to the Department of Human Resources and Social release of 'Twelve Five Year Plan', the next five years the minimum wage to maintain an annual growth rate of above 13%, 5 years after the close 'double.'

Minimum wage increase so that some companies have 'complained' that can not afford such a rapid rise in labor costs, some experts believe that China will continue to go up to lose comparative advantage in labor.

For minimum wage, Yin Chengji said, the minimum wage system is in fact the basic wage income of workers is to protect a system of protection, a catch-all security in the income distribution system reform among the central government to improve the initial distribution of the entire income distribution among the proportion.

'Twelve Five' period, the minimum wage to maintain the growth rate of more than 13%, is to make low-wage workers have a guaranteed increase in the minimum wage to determine the specific amount is given full consideration to all aspects of the factors.

Department of Human Resources and Social Mo Rong, deputy director of Institute of wages that labor comparative advantage mainly depends on 'labor costs', not simply to confuse the price of labor and labor costs. The price of labor is the measure of labor income per unit time. Labor costs required per unit output value is a measure of labor income.

When wages rise twice, three times per unit time to produce the output value of the time, labor costs are not rising, but declined.

According to the survey, many parts of China in recent years the growth rate of labor productivity is much higher than average wage growth, increasing high-tech talent and therefore can not simply say that wages have gone up, labor costs would be increased, in some areas may also down can be said that China still has a large number of relatively low prices, but high-quality labor force labor force, which will enable the continuation of China's labor advantage in the global manufacturing sector has a strong competitive edge.

In addition, the labor market is a special element of its prices certainly may have some negative impact on the economy, will improve the living conditions of workers. Labor prices, help to reverse the distribution of labor in GDP in China continued to decline The situation is conducive to increasing consumer purchasing power, economic development and lasting power.