Unemployment has been a serious social issue in the People's Republic of China in recent years, regarding both an increase in quantity and an unequal impact on different social regions. The influence of foreign investment in China has greatly increased since the reform and opening up was implemented in the early 1980s. The relationship between foreign-funded enterprises and urban labor market development is dual. Opponents influence the shape of labor-market regulation; however, foreign-funded enterprises have also become a major source of demand for urban and rural areas migrant workers. Demographic factors also affect unemployment in China, such as age and sex. The position of women in the labor market has been deteriorating, with a decline in labor force participation rate, rising unemployment, increased work intensity and a widening gender pay gap.
Definition and calculation method
The surveyed unemployment rate is defined as the percentage of the unemployed population relative to the sum of the employed and unemployed populations, calculated through a sample survey estimation. The formula is as follows: Surveyed Unemployment Rate = (Number of Unemployed Persons) / (Number of Unemployed Persons + Number of Employed Persons) × 100%.
The unemployment rate formula in China is calculated by dividing the number of unemployed individuals by the total labor force, which includes only the employed and unemployed populations, excluding the non-labor force population (such as retirees or students not seeking employment). Thus, the surveyed unemployment rate indicates the proportion of unemployed individuals within the labor force, not within the total population aged 16 and above. For instance, a 5.0% urban unemployment rate reflects that 5 out of every 100 individuals in the labor force are unemployed, rather than 5 out of every 100 individuals aged 16 and over.
The definitions of employment and unemployment align with the standards set by the 19th International Conference of Labour Statisticians of the International Labour Organization (ILO). "Employed persons" include individuals aged 16 and above who worked at least one hour for pay or profit during the reference week. This category also includes those temporarily absent from work due to reasons such as training, vacation, or illness, provided they intend to return within one month. "Unemployed persons" refer to individuals aged 16 and above who were not employed during the reference week but had actively sought work within the previous three months and were available to work within two weeks, including those awaiting job opportunities scheduled to start within three months. The urban unemployment rate represents the ratio of unemployed persons to the combined total of employed and unemployed persons within urban areas.
Survey methodology and data collection China's surveyed unemployment rate is derived from the Monthly Labor Force Survey, which employs a stratified, multi-stage sampling method with probability proportional to size (PPS). This method involves randomly selecting neighborhood (or village) committees, followed by systematic sampling of households within these areas. Each month, approximately 340,000 households are surveyed, covering all prefecture-level and county-level regions in mainland China. At a 90% confidence level, the relative error of the urban surveyed unemployment rate is within 2%. For example, if the estimated urban unemployment rate is 5%, the actual rate is expected to lie between 4.9% and 5.1%. During specific periods each month, enumerators collect employment and unemployment data from selected households using electronic devices (PADs), reporting directly to the National Bureau of Statistics (NBS) via an online system. The NBS processes the data to estimate both national and provincial urban unemployment rates.
Data coverage According to the National Bureau of Statistics of China (NBS Website), the unemployment data is compiled based on the Monthly Labor Force Survey, which covers the entire mainland China. The survey does not include data from Hong Kong, Macao, or Taiwan.
Recent data +Urban registered unemployment and unemployment rate in China (1980–2004)YearUrban unemployment (10,000 persons)Unemployment rate (%)source1980541.54.91981439.53.81982379.43.21983271.42.31984235.71.91985238.51.81986264.42.01987276.62.01988296.22.01989377.92.61990383.22.51991352.22.31992363.92.31993420.12.61994476.42.81995519.62.91996552.83.01997576.83.119985713.119995753.120005953.120016813.620027704.020038004.320048274.2
2005 As of the end of 2005, the total employed population in China was 758.25 million, an increase of 6.25 million from 2004. Of this total, 273.31 million were employed in urban areas, with an increase of 9.7 million and a net increase of 8.55 million. The registered urban unemployment rate was 4.2% at the end of 2005, maintaining the same level as in 2004.
2006 As of the end of 2006, the total employed population in China was 764.00 million, representing a rise of 5.75 million from 2005. Of this total, 283.10 million were employed in urban areas, with an increase of 11.84 million and a net increase of 9.79 million. The registered urban unemployment rate stood at 4.1% at the year end, down by 0.1 percentage point compared to 2005.
2007 As of the end of 2007, the total employed population in China was 769.90 million, marking an increase of 5.90 million over 2006. Of this total, 293.50 million were employed in urban areas, with a net increase of 10.40 million and 12.04 million new jobs created. The registered urban unemployment rate stood at 4.0% at the end of 2007, a decrease of 0.1 percentage point from the previous year.
2008 As of the end of 2008, the total employed population in China was 774.80 million, up by 4.90 million from 2007. Of this total, 302.10 million were employed in urban areas, with a net increase of 8.60 million and 11.13 million new jobs created. The registered urban unemployment rate was 4.2% at the year end, an increase of 0.2 percentage point over 2007.
2009 As of the end of 2009, the total employed population in China was 779.95 million, an increase of 5.15 million over 2008. Of this total, 311.20 million were employed in urban areas, with a net increase of 9.10 million and a total of 11.02 million new jobs created. The registered urban unemployment rate stood at 4.3% at the end of 2009, an increase of 0.1 percentage point compared to the previous year.
2010 As of the end of 2010, 11.68 million new jobs were created in urban areas in China, an increase of 660 thousand over the previous year. The registered urban unemployment rate was 4.1% at the end of 2010, a decrease of 0.2 percentage points from 2009. The total number of migrant workers reached 242.23 million in 2010, an increase of 5.4% over 2009. Among them, 153.35 million were employed outside their hometowns, up by 5.5%, while 88.88 million worked locally, an increase of 5.2%.
2011 As of the end of 2011, the total employed population in China was 764.20 million, with 359.14 million employed in urban areas. During the year, 12.21 million new jobs were created in urban regions. The registered urban unemployment rate stood at 4.1% at the year end, maintaining the same level as 2010. The total number of migrant workers reached 252.78 million in 2011, an increase of 4.4% over 2010. Of these, 158.63 million were employed outside their hometowns, up by 3.4%, while 94.15 million worked locally, an increase of 5.9%.
2012 As of the end of 2012, the total employed population in China was 767.04 million, with 371.02 million employed in urban areas. During the year, 12.66 million new jobs were created in urban regions. The registered urban unemployment rate was 4.1% at the year end, maintaining the same level as 2011. The total number of migrant workers reached 262.61 million in 2012, an increase of 3.9% over 2011. Among them, 163.36 million were employed outside their hometowns, up by 3.0%, while 99.25 million worked locally, an increase of 5.4%.
2013 As of the end of 2013, the total employed population in China was 769.77 million, with 382.40 million employed in urban areas. During the year, 13.10 million new jobs were created in urban regions. The registered urban unemployment rate stood at 4.05% at the year end, slightly lower than the previous year's 4.09%. The total number of migrant workers reached 268.94 million in 2013, an increase of 2.4% over 2012. Among them, 166.10 million were employed outside their hometowns, up by 1.7%, while 102.84 million worked locally, an increase of 3.6%.
2014 As of the end of 2014, the total employed population in China was 772.53 million, with 393.10 million employed in urban areas. During the year, 13.22 million new jobs were created in urban regions. The registered urban unemployment rate was 4.09% at the year end. The total number of migrant workers reached 273.95 million in 2014, an increase of 1.9% over 2013. Of these, 168.21 million were employed outside their hometowns, up by 1.3%, while 105.74 million worked locally, an increase of 2.8%.
2015 As of the end of 2015, the total employed population in China was 774.51 million, with 404.10 million employed in urban areas. During the year, 13.12 million new jobs were created in urban regions. The registered urban unemployment rate stood at 4.05% at the year end. The total number of migrant workers reached 277.47 million in 2015, marking a 1.3% increase over 2014. Among them, 168.84 million were employed outside their hometowns, up by 0.4%, while 108.63 million worked locally, an increase of 2.7%.
2016 As the end of 2016, China's total employed population stood at 776.03 million, with 414.28 million employed in urban areas. That year, urban employment increased by 13.14 million. The registered urban unemployment rate at year-end was 4.02 percent. The total migrant worker population in 2016 reached 281.71 million, marking a 1.5 percent increase over 2015. Within this group, 169.34 million workers were employed outside their hometowns, a growth of 0.3 percent, while 112.37 million were employed locally, showing a 3.4 percent rise.
2017 As of the end of 2017, China's total employed population was 776.40 million, with 424.62 million people working in urban areas. Throughout the year, urban employment grew by 13.51 million, marking an increase of 0.37 million over the previous year. By year-end, the registered urban unemployment rate had decreased to 3.9%, down by 0.12 percentage points from the previous year. The number of migrant workers totaled 286.52 million in 2017, reflecting a 1.7% increase compared to 2016. Among these workers, 171.85 million were employed outside their hometowns, a rise of 1.5%, while 114.67 million worked within their local areas, showing an increase of 2.0%.
2018 As of the end of 2018, the total employed population in China was 775.86 million, with 434.19 million employed in urban areas. During the year, 13.61 million new jobs were created in urban regions, an increase of 0.10 million compared to the previous year. The surveyed unemployment rate in urban areas stood at 4.9% at the end of 2018, 0.1 percentage point lower than the previous year, while the registered unemployment rate was 3.8%, also down by 0.1 percentage point. The total number of migrant workers reached 288.36 million in 2018, an increase of 0.6% over 2017. Of these, 172.66 million were employed outside their hometowns, up by 0.5%, while 115.70 million worked locally, an increase of 0.9%.