Thursday 5 February 2009

20 Million Migrant Workers Challenge Social Stability

130 million migrant workers in China who lost their jobs will increase the possibility of rural land disputes and hurt the income of farmers.

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Guanyu said...

20 Million Migrant Workers Challenge Social Stability

130 million migrant workers in China who lost their jobs will increase the possibility of rural land disputes and hurt the income of farmers.

Chang Hongxiao, Caijing
3 February 2009

Of the 130 million migrant workers in China, 15.3 percent was impacted by the global financial crisis and lost their jobs, which may intensify social conflict and even induce social unrest, said Chen Xiwen, director of the Office of the Central Leading Group on Rural Work.

Chen’s estimates are based on a survey conducted by the Ministry of Agriculture, which shows that until January 26, among migrant workers back home, 60.4 percent will go back to urban areas later. Accordingly, it is estimated that about 15.3 percent migrant workers, or 20 million, have no jobs at present.

The survey was given in 150 villages in 15 provinces with the most migrant workers.

Chen’s concern corroborates with the recent document issued by the central government. On February 1, 2009, the central committee of the Communist Party of China and the State Council issued the No.1 central document. This is the sixth year in a row in which the No. 1 central document focused on rural problems, reflecting Chinese leaders’ attention to agricultural and farmer issues and worries over the rising unemployment rate among migrant workers.

“Out of the 130 million migrant workers [in China], about 110 million have stable jobs,” Chen said. “But the migrant labour market in the first half of 2009 mostly depends on the development of the global financial crisis and support from the central government.”

The large number of unemployed migrant workers will hurt the income of farmers, as migrant worker income accounts for 40 percent of the total income of farmers. Moreover, the continued decline of agriculture products will make improving rural incomes difficult. 2009 will be a tough year for agriculture growth.

Jobless migrant workers who returned home will increase the possibility of rural land disputes, while those who stayed in urban areas will put more pressure on social service and public security systems.

Chen said China’s dependence on the global economy caused this large scale unemployment of migrant workers, and delay of household registration system reform and urbanization lead the unstable status of migrant workers in urban areas. He pointed out that urbanization has to match with the development of secondary and third industries, so it will be a long process.