Monday, July 15, 2024

Emphasizing Employment: President Xi Jinping’s Call for Job Creation and Market Stabilization in China


In a recent address to China’s cadres, President Xi Jinping has emphasized the critical importance of employment and job creation, urging officials to prioritize these areas as Beijing seeks to stabilize the market and maintain socio-economic stability. This directive comes as the nation approaches the third plenum in July, a period of significant political and economic planning and decision-making.

Xi’s call for “full, high-quality employment” not only addresses the issue of illegal layoffs by some companies but also highlights the existing mismatch between job supply and demand in various sectors, particularly affecting young people. The president firmly believes in the need to develop new business entities and models and to foster new professions and sources of job growth vigorously.

“Employment is the most basic livelihood of the people, and it is related to … the healthy development of the economy and society, and the long-term stability of the country,” Xi was quoted as saying. This statement underscores the government’s commitment to deepening reforms and boosting growth, topics that are expected to be discussed comprehensively during the upcoming third plenum.

The emphasis on high-quality development, as articulated by Xi, is envisioned as a process that not only creates more and better jobs but also drives employment in a manner that supports the evolving nature of China’s economy and society.

In light of these objectives, a lecture by Mo Rong, head of the Chinese Academy of Labour and Social Security, was presented to the Politburo. This comes at a crucial time — just before the graduation season, when the job market becomes particularly competitive for the influx of new graduates. With privately run businesses, which constitute a significant portion of China’s employment landscape, facing pressures to lay off staff to cut costs or optimize operations, the importance of employment stability cannot be overstated.

Lian Ping, director general of the China Chief Economists Forum, reiterated the significance of employment, stating, “Without employment, there will be no income. Not to mention promoting consumption, which can only be contracted.” The key to stabilizing the job market, according to Lian, lies in boosting the vitality of businesses. Once businesses are energized, job creation naturally follows.

Given that more than 80% of the urban workforce is employed by the private sector, which is currently striving to regain stability post-pandemic, the challenges are considerable. With a record high of 11.79 million university students set to graduate this summer, and an already tight job market, the situation is particularly daunting.

President Xi has encouraged China’s university graduates to seek employment in grassroots organizations, rural areas, and small businesses, calling for a change of mindset and the cultivation of “correct views of employment” to unlock a world of employment opportunities with new career selection underpinnings.

To address this crucial issue, Xi has called for an in-depth analysis of industries experiencing labor gaps. The aim is to resolve the paradox of positions lacking workers while some people remain unemployed. Furthermore, the president has mandated enhanced supervision of the labor market to combat employment discrimination, wage defaults, and illegal layoffs effectively.

As China progresses into a new phase of economic development and social stability, the leadership’s focus on employment reflects a strategic approach to nurturing a resilient and inclusive labor market that can adapt to the rapidly changing global landscape.

Alexandra Bennett
Alexandra Bennett
Alexandra Bennett is a seasoned business journalist with over a decade of experience covering the global economy, finance, and corporate strategies. With a Bachelor's degree in Economics and a Master's in Business Journalism from Columbia University, Alexandra has built a reputation for her insightful analysis and ability to break down complex economic trends into understandable narratives. Prior to joining our team, she worked for major financial publications in New York and London. Alexandra specializes in mergers and acquisitions, market trends, and economic

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