China’s Economic Development and the Change in Production and Employment in China

I would like to speak on the following four topics: 1. China’s Economic Development 2. Overview of Employment in China 3. Relation between China’s Economic Development and Employment 4. Several New Trends in Employment in China

1. China’s Economic Development (1) Size of the economy (2) Investment in fixed assets (3) Consumption (4) External trade 5 10 15 20 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Changes in Annual GDP Growth （％）

2. Overview of Employment in China (1) Population and size of the labor force (2) Total employment volume 55000 60000 65000 70000 75000 80000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Changes in the Number of Workers (1990-2003) (Unit: 10,000)

Diagrams: Ratio of the Population of the Employed in Urban and Rural Areas of the Total Employment Volume Ratio of the population of the employed in urban and rural areas (1990) Ratio of the population of the employed in urban and rural areas (2003) Population of the employed in urban areas 26% Population of the employed in urban areas 34% Population of the employed in rural areas 66% Population of the employed in rural areas 74%

(3) Employment structure 0% 20% 40% 60% 80% 100% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Ratio of Employed Persons by Industry (1990-2003) Primary industry 　　 Secondary industry 　　 Tertiary industry

Diagrams: Employment Structure by Primary, Secondary, and Tertiary Industry 19% Tertiary industry 29% Primary industry 49% Primary industry 60% Secondary industry 21% Secondary industry 22%

(4) Unemployment rate 4.3 2.5 2.3 2.6 2.8 2.9 3.0 3.1 3.6 4.0 0.0 1.0 2.0 5.0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Changes in the Registered Unemployment Rates in Urban Areas (1990-2003)

3. Relation between Economic Development and Employment (1) First phase (1978-1996) 　 A major feature of the relation between economic development and employment during this phase was that economy and employment grew simultaneously. Regular employment and atypical employment existed side by side, and at the same time, supported the growth of employment. Atypical employment is gradually beginning to play the role of increasing employment. (2) Second phase (1996-today) A major feature of the relation between economic development and employment during this phase is that economy and employment are no longer growing simultaneously. While the momentum of economic growth has been maintained, the increase in the number of workers is slowing. The number of regular employees is declining. Atypical employment is absorbing an increasing number of workers.

4. Several New Trends in Employment in China (1) The employment conditions remain difficult. (2) Atypical employment, such as employment of part-timers and job-hopping part-timers, continues to increase. (3) The number of workers employed by foreign-affiliated firms continues to increase. (4) The issue of young people’s employment has come to the surface. (5) The issue of surplus labor in rural areas becomes an increasingly difficult issue. 　　In sum, China’s working-age population will increase by 5.5 million every year on average until 2020. In 2020, China will have a working-age population of 940 million. With this labor force, China must maintain a certain level of economic growth. For the Chinese Government, the employment issue is very important. Employment promotion is one of the Chinese Government’s long-term national policies.