China’s Economic Slowdown Worsens Social Unrest
As the Chinese government prepares for the third plenum, a crucial meeting to discuss the country’s economic and social policies, concerns are growing about the increasing social unrest and dissatisfaction among the population.
In the predawn darkness, the Houba labour market in Guiyang is a sea of construction helmets as day workers seek temporary jobs in the south-western Chinese city. However, many of these migrant workers will leave disappointed, with an estimated 70% of them unable to find employment that day.
China’s property slowdown, coupled with a crunch in local government finances, has hit jobs. The leadership is facing new challenges in maintaining social stability as the economy slows down, leading to a rise in labour market stress, housing foreclosures, and unemployment.
Officially, China’s Economy is Doing Well
According to official figures, China’s economy is doing well, with gross domestic product (GDP) growing 5.3% year on year in the first quarter. However, behind the scenes, Chinese officials recognize the growing risks from a transition that does little to address unemployment or flagging domestic demand.
Rising Unemployment and Mental Health Concerns
Unemployment is on the rise, with 10mn migrant workers leaving the construction industry in 2022 and 2023. Young people, in particular, are feeling the pinch, with many graduates struggling to find jobs commensurate with their qualifications. Mental health concerns are also growing, with online searches for mental health-related videos jumping 83% in 2023.
Surveillance State Strains
China’s surveillance state, carefully nurtured since the 1989 Tiananmen Square massacre, has suppressed most unrest in recent decades. However, the cost of maintaining this system is increasingly straining local governments, which bear most of the burden.
Rebuilding the Private Sector
To fix the problem of youth unemployment, China needs to reinvigorate its private sector, which has lost confidence after regulatory crackdowns on high-profile tycoons. Many believe the answer lies in creating a more business-friendly environment that encourages entrepreneurship and innovation.
Conclusion
China’s economic slowdown is having far-reaching consequences, including rising social unrest and dissatisfaction among the population. As the leadership meets for the third plenum, the government is under pressure to strengthen welfare provision and address the growing social challenges facing the country.
FAQs
Q: What is the current state of China’s economy?
A: According to official figures, China’s economy is growing 5.3% year on year in the first quarter. However, behind the scenes, Chinese officials recognize the growing risks from a transition that does little to address unemployment or flagging domestic demand.
Q: What is the main challenge facing China’s youth?
A: Unemployment is on the rise, with 10mn migrant workers leaving the construction industry in 2022 and 2023. Many graduates are struggling to find jobs commensurate with their qualifications, leading to growing mental health concerns.
Q: How is the Chinese government responding to the economic slowdown?
A: The government is under pressure to strengthen welfare provision and address the growing social challenges facing the country. This includes creating a more business-friendly environment that encourages entrepreneurship and innovation.
Q: Will the surveillance state continue to suppress unrest?
A: The surveillance state is unlikely to face significant challenges in the short term. However, the cost of maintaining this system is increasingly straining local governments, which may have long-term implications for social stability.
Author: www.ft.com
Orginal Source link