Unemployment in the process of economic development in China

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China has undergone rapid economic growth since the late 1970s, raising questions about whether this growth correlates with employment increases or a decrease in unemployment. This book explores unemployment and the evolution of the modern labor market amid China's economic development. It utilizes the Lewis Model, Harris-Todaro Model, and Neo-Schumpeterian theories on technological progress and searching-matching approaches to analyze unemployment causes. A dual economic structure has led to significant rural-to-urban migration, driven by agricultural development and industrialization. The shift from a centrally planned to a market economy has resulted in many redundant workers from state-owned enterprises. Additionally, a peak in the labor force population, particularly among young entrants, has intensified employment pressures. China's economic development is marked by large-scale structural adjustments, where technological advancement fuels growth and transformation. This "creative destruction effect" has created mismatches between labor supply and demand, contributing to rising unemployment in the modern labor market. Consequently, economic growth does not always lead to employment growth and can, in fact, increase unemployment levels during certain periods. In the medium to long term, structural factors primarily drive unemployment issues in China.