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China's employment challenges and strategies after the WTO accession

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  • Zeng, Douglas Zhihua

Abstract

Although China has made impressive progress in economicdevelopment and improving social well-being, it is facing many daunting challenges while transforming toward a knowledge and service-based economy and further opening up to international competition after its WTO accession in the context of knowledge revolution. One of the biggest challenges is how to create 100-300 million new jobs in the coming decade to absorb the millions of laid-offs, rural emigrants and newly added labor force. China has been successful in building high-tech parks and ICT industries, but they are limited in terms of employment generation, while most of the traditional labor-intensive industries are losing competitiveness due to low productivity. In order to combat the unprecedented employment challenge, China must implement a systemic and sustained strategy, which may consist of the following policy thrusts: encouraging the private sector; promoting small and medium enterprises; expanding the service sector; reforming the state-owned enterprises; strengthening the social security system; improving labor market flexibility; and establishing mass retraining programs.

Suggested Citation

  • Zeng, Douglas Zhihua, 2005. "China's employment challenges and strategies after the WTO accession," Policy Research Working Paper Series 3522, The World Bank.
    • Handle: RePEc:wbk:wbrwps:3522
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    References listed on IDEAS

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    Cited by:

    1. Zeng, Douglas Zhihua & Wang, Shuilin, 2011. "China and the knowledge economy : challenges and opportunities," Policy Research Working Paper Series 4223, The World Bank.
    2. Janet Ceglowski & Stephen Golub, 2007. "Just How Low are China's Labour Costs?," The World Economy, Wiley Blackwell, vol. 30(4), pages 597-617, April.

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