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Labour Market Insecurities in China
Edward Gu, May 2003

China is suffering from mass unemployment. Millions of former lifetime employees have been laid-off since 1993. Although being de facto unemployed, laid-off workers still maintain nominal employment relations with their original workplace units. Most of them refuse to register themselves as unemployed as they worry about losing entitlements to welfare benefits (e.g. old-age pensions). Many central government's unemployment policies have confronted failure in local implementation because they don't take in account the embeddedness of lay-offs within the welfare arrangements. Local governments are playing a crucial role in creating transitional arrangements for laid-off workers to deal with welfare issues.
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Updated by LD. Approved by GS. Last update: 25 June 2003.